Leonardo shares rose in early trade Monday on a report that the Italian government was planning to increase defense spending, and after the group said its defense partnership won a lucrative fighter-jet contract.

Shares rose 4.4% to 54.82 euros, a two-month high, after Sky TG24 reported that the Italian government would commit to growing its defense spending, adding a potential 17 billion euros ($19.44 billion) to its current commitments over the next two years.

Separately, Italian company Leonardo said Friday that it secured an 18-month contract valued at 4.6 billion pounds ($6.14 billion) alongside the U.K.'s BAE Systems and Japan's Mitsubishi Heavy to develop a new stealth fighter jet.

Reports on defense spending come ahead of a meeting of world leaders at a North Atlantic Treaty Organization summit in Ankara over Tuesday and Wednesday.

European leaders have come under pressure from President Trump and NATO Secretary-General Mark Rutte to show they are willing to lift defense spending.

If confirmed, the increase in Italian spending would represent "a more proactive approach than what has emerged in recent weeks by the Italian government on military spending, with positive implications for both Leonardo and Fincantieri," Equita analyst Martino De Ambroggi said.

Leonardo is Italy's largest defense company, and the Rome-based group counts the Italian state as its largest shareholder. The government owns a 30.2% stake in the company, according to LSEG.

Fincantieri shares in Milan rose more than 12% Monday, with the stock boosted by four freshly announced deals with underwater-focused companies as well as the Italian defense spending lift.

Write to Joe Stonor at josephmichael.stonor@wsj.com

(END) Dow Jones Newswires

July 06, 2026 06:23 ET (10:23 GMT)

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