Leonardo touts Saudi helicopter order, Indonesia fighter deal, drone milestones

Leonardo (FINMF)(FINMY) announced a series of commercial and defense agreements Tuesday at the Farnborough International Airshow, including a helicopter order from Saudi Arabia's The Helicopter Company, a fighter aircraft contract with Indonesia and the launch of operations for its drone joint venture with Turkish defense company Baykar.

The Italian aerospace and defense company also signed a letter of intent to pursue a naval helicopter program with Indonesia.

Saudi operator orders 11 helicopters

The Helicopter Company, Saudi Arabia's largest commercial helicopter operator, placed a firm order for 11 Leonardo AW139 helicopters.

The aircraft are scheduled for delivery between 2027 and 2028 under a framework agreement signed in 2024 that allows for the potential acquisition of up to 130 helicopters.

THC said the additional aircraft will support emergency medical services, offshore operations and VIP transport while expanding its existing AW139 fleet.

Drone joint venture begins operations

Leonardo and Turkish drone manufacturer Baykar announced that their LBA Systems joint venture has become fully operational after receiving regulatory approvals.

The companies each own a 50% stake in the Italy-based venture, which will develop and manufacture uncrewed aerial systems for European and international markets.

The venture combines Leonardo's avionics, sensors and mission systems with Baykar's drone platforms and manufacturing capabilities.

Leonardo said production has already begun on an initial batch of the Astore Levante uncrewed aircraft, with deliveries to an Italian customer expected later this year.

The companies also plan to develop larger systems including the KIZILELMA uncrewed combat aircraft and the AKINCI high-altitude drone.

Indonesia orders M-346 fighters

Leonardo and PT ESystem Solutions Indonesia signed a contract to supply Indonesia's Ministry of Defence with 12 M-346 F Block 20 light fighter aircraft.

The agreement follows a letter of intent announced earlier this year and includes maintenance, overhaul, training and technology transfer programs.

Deliveries are expected to begin in 2030.

Indonesia becomes the 23rd operator of the M-346 platform, which is used for advanced pilot training and light combat missions.

The Block 20 configuration includes an active electronically scanned array radar, Link 16 communications, electronic countermeasures and upgraded cockpit displays.

Naval helicopter program under discussion

Leonardo, PT ESystem Solutions and Indonesia's Ministry of Defence also signed a letter of intent covering a potential supply of AW149 military helicopters for the Indonesian Navy.

The proposal includes search and rescue, disaster relief and shipborne operations, along with plans to establish local maintenance, training and technical support capabilities.

The companies did not disclose the potential number of helicopters or the value of the proposed agreement.

For investors, the Farnborough Airshow is one of the aerospace industry's biggest events and a traditional venue for aircraft orders. The announcements are closely watched because they offer insight into commercial aviation demand, military procurement activity and the long-term outlook for aerospace manufacturers.