WORLD WORLDWIDE EUROPE ITALY - news journal UPDATE - (en) Italy, FAI, Umanita Nova #33-25 - Profits and Sharks. Leonardo-Rheinmetall Industrial Warfare Agreement (ca, de, it, pt, tr)[machine translation]

 The first A2CS Combat (Army Armored Combat System) vehicles are

scheduled for delivery by the end of 2025. These vehicles are part of
the initial batch of 21 vehicles generated by the agreement between the
Italian defense industry giants Leonardo S.p.A. and the German company
Rheinmetall. This agreement marks the beginning of the operational phase
of the A2CS program for the Army's new combat vehicles, which leverages
the synergy between the two Italian and German companies. This
industrial agreement strengthens Leonardo's position in the
modernization of the European integrated warfare system. The signed
contract concerns the first tranche of a plan to build 1,050 vehicles
that will renew the Army's entire fleet of heavy vehicles. The new Main
Battle Tank program is also being added to this A2CS stock. The first 21
A2CS vehicles include five Lynx KF-41 vehicles with Rheinmetall's Lance
turret and sixteen vehicles in a new configuration, equipped with Lynx
chassis and Leonardo's Hitfist 30mm turret.

The new joint venture, named "Leonardo Rheinmetall Military Vehicles"
(LRMV), is headquartered in Rome and has its operations in La Spezia. It
is owned 50/50 by the two companies. At least 60% of its industrial
activities will take place in Italy.

The new LRMV joint venture will become a leader in the defense industry,
aiming to develop, produce, and sustain new warfare systems for the
ground army and for future European main battle tanks.

LRMV has signed a contract with the Italian government that aligns with
the need for comprehensive army reform, a move advocated by Defense
Minister Guido Crosetto. The Minister himself recently stated that "a
reform of the Armed Forces is needed to increase personnel and ensure
the sustainability of the national defense model."

The A2CS modernization program aims to increase the Army's warfighting
capability, providing modern and advanced vehicles, which requires
significant investment in both finances and human resources. The A2CS
program represents the largest modernization operation of the Italian
Army in recent decades. It represents a significant opportunity for
technological and employment growth for the Italian defense industry,
with the prospect of exporting the platforms developed to other European
countries. The first contract for 21 vehicles is just the beginning.
With the A2CS program, the Italian defense industry will acquire the
capacity to lead the new era of strategic and technological cooperation
in the international defense sector.

Leonardo S.p.A.'s development and industrial expansion programs are
progressing rapidly. In the land sector, the agreement to acquire Iveco
Defence - valued at approximately EUR1.7 billion - will allow the
integration of vehicle capabilities with the group's electronics and
control systems, strengthening the European defense supply chain. At the
same time, the establishment of joint ventures and strategic
partnerships with Rheinmetall, Baykar Technologies, and Nuclitalia
demonstrates the desire to expand the national and European technology
ecosystem.

Leonardo S.p.A. reported strong growth in the first nine months of 2025,
with orders totaling EUR18.2 billion (+23.4% compared to the same period
in 2024). In 2025, Leonardo S.p.A. acquired Iveco Defence and the MoU
with Airbus and Thales for the European Space Alliance. In the first
nine months of the year, the Italian aerospace and defense giant saw its
key economic and financial indicators strengthen and its strategic
programs consistently advance, demonstrating once again that its
military strategy generates billions in profits.

Profits were clearly achieved in the Aeronautics Division, where
revenues reached EUR13.4 billion (+11.3%), with significant
contributions from the Defense and Security Electronics, Helicopters,
and Aeronautics sectors. It should also be noted that Leonardo S.p.A.
benefited from the contract to provide logistics support and training
for Kuwait's Eurofighter fleet. The order backlog consolidated at
EUR47.3 billion, revenues stood at around EUR18.6 billion, and EBITA
(earnings before interest, taxes, and amortization, a company's
operating margin net of depreciation of tangible assets but gross of
amortization of intangible assets) rose by approximately EUR1.66 billion
to EUR945 million (+18.9%). Leonardo S.p.A.'s 2025-2029 Industrial Plan
continues with technological innovation, digitalization, sustainability
and internationalization, expanding its presence in the cyber field with
the acquisition of the companies Axiomatics AB and SSH Communications
Security. In addition to the joint venture with Rheinmetall, Leonardo
S.p.A., through the CAPPA Electronics Evolution (G2E) consortium, has
signed a contract with Edgewing, establishing the joint venture between
BAE Systems (UK), Leonardo (Italy), and Japan Aircraft Industrial
Enhancement Co. Ltd. (Japan). Edgewing will serve as the primary systems
integrator for the development of the sixth-generation Global Combat Air
Programme (GCAP) fighter. The companies will collaborate to provide the
next-generation advanced sensor and communications system, known as
Integrated Sensing and Non-Kinetic Effects & Integrated Communications
Systems (ISANKE & ICS), as well as the integrated long-term logistics
support service (Through-Life Support Service - TLSS), which will
accompany the system for decades.

In the space sector, the Memorandum of Understanding with Airbus and
Thales envisions the creation, by 2027, of a European operator with
25,000 employees and pro forma revenues of EUR6.5 billion, intended to
strengthen Europe's strategic autonomy in space.

Leonardo S.p.A.'s transformation into a European leader in the defense
industry is proceeding apace, helping to arm bloodthirsty armies around
the world and generating billions in profits. This insane arms race must
be stopped and the defense industry must be converted into a factory of
peace and prosperity, channeling the hundreds of billions allocated for
armaments into social spending, starting with healthcare, education,
transportation, and the fight against poverty.

Renato Franzitta

Sites consulted

https://www.leonardo.com/

https://formiche.net/sezione/difesa/

https://www.difesaonline.it/

https://umanitanova.org/profitti-e-pescecani-accordo-bellico-industriale-leonardo-rheinmetall/
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