Reports: Leonardo-Rheinmetall venture wins two Italian contracts worth 3.7 billion euros
Key Facts
Reuters, citing Italian newspaper MF in a report published on October 22, 2026, said the joint venture between Leonardo and Rheinmetall had secured two contracts for the Italian army worth a total of 3.7 billion euros. But neither company announced the orders, and the contracts have not been confirmed as formally signed. Leonardo CEO Lorenzo Mariani said he could not confirm whether the contract had been signed, while Rheinmetall declined to comment. The 3.7 billion euro figure therefore remains attributed to the newspaper report, not to an official announcement by the companies. The reports come as part of Italy’s broader plan to modernize the army’s armored vehicles, Reuters said.
According to the report, the orders include A2CS combat vehicles and next-generation MBT tanks. Mariani linked these programs to ongoing work with Rheinmetall, saying the tank program was "ready to move into production on our side." He added that the companies were actively working on the tank program and the future combat system. His comments indicate progress in industrial work, but do not confirm the signing of the orders reported by the newspaper. Rheinmetall did not comment on whether the contracts had been concluded.
The partnership dates back to the Leonardo-Rheinmetall joint venture, owned equally by the two companies and named Leonardo Rheinmetall Military Vehicles. In November 2025, the companies announced their first contract to supply 21 A2CS Combat vehicles to the Italian army, with an option to buy 30 additional vehicles. The A2CS program aims to acquire 1,050 armored vehicles as part of a broader renewal of the heavy vehicle fleet, according to Leonardo’s announcement at the time. These figures show the scale of the wider program, but do not represent the value of the newly reported contracts. The 3.7 billion euro figure refers to the two contracts cited by MF, without official confirmation from the companies.
The joint venture’s arrangement calls for 60% of industrial activities to be carried out in Italy, according to Leonardo’s announcement in November 2025. Those activities include integration, testing, delivery and logistical support, as well as parts of production and development. This allocation places a large share of the program’s work in Italy, while the two companies share ownership of the venture equally. In January 2026, the joint venture delivered the first four Lynx KF-41 vehicles to the Italian armed forces, and Rheinmetall said the delivery officially launched the A2CS program. Italian Defense Minister Guido Crosetto described the goal as strengthening land systems through the introduction of advanced platforms.
Rheinmetall estimated the value of the new main battle tank and A2CS programs at more than 23 billion euros in an investor presentation in May 2026, with export opportunities of up to 50 billion euros over the following fifteen years. These are company estimates for the two programs and their export prospects, not the value of the two contracts reported by MF. In market trading, Leonardo shares rose 0.7% in Milan on October 22, bucking the broader market trend after press reports of armored vehicle orders supported the stock. Investors are awaiting Leonardo’s board meeting on November 5, 2026, to present nine-month results, the next scheduled date on the company’s calendar. The meeting could provide an opportunity to update information on the orders and land programs, while no official confirmation has yet been issued that the reported contracts were signed.