Leonardo
FINMY
Industrials
2
exclusion reasons
2 themes
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Leonardo SpA (MIL: LDO, NASDAQ: DRS) is Italy's largest weapons manufacturer. It manufactures OTO Melara 76mm naval guns installed on Israeli Navy warships used in operations in Gaza and the occupied territories. DRS subsidiary received a $15.4 million tank trailer contract for the Israeli military in December 2023. See DRS record for full details.
Leonardo derives approximately 72% of its revenue from arms sales and military services, totaling an estimated $13.8 billion in defense revenue for 2024. The company is a specialized defense contractor, ranked among the world's top arms producers by SIPRI. Its product portfolio includes purpose-built weapons systems such as the M-346 Master light fighter jet, advanced artillery systems developed in partnership with KNDS, and the Michelangelo air defense system, for which it forecasts €21 billion in new business by 2035.
The company's U.S. subsidiary, Leonardo DRS, explicitly identifies as a defense contractor "shaping the battlefield of tomorrow." Leonardo's operations have drawn legal challenges from civil society groups; in November 2025, campaign groups filed a lawsuit in Rome seeking to nullify the company's arms supply contracts. The company has also been implicated in corruption scandals, including a 2024 conviction of an intermediary for bribing an Indonesian general in connection with a €30 million helicopter procurement. Leonardo categorically denies allegations of supplying armaments to Myanmar.
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