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Leonardo, Rheinmetall secure 3.7-billion-euro contracts with Italian army, MF daily says - Finance news and analysis from Global Banking & Finance Review
Finance

Leonardo, Rheinmetall secure 3.7-billion-euro contracts with Italian army, MF daily says

Published by Global Banking & Finance Review

Posted on October 22, 2026

2 min read

· Last updated: October 22, 2026

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Leonardo and Rheinmetall Win €3.7 Billion Armoured Vehicle Contracts With Italian Army

Major Defence Contracts Awarded to Leonardo and Rheinmetall

ROME, Oct 22 (Reuters) - Italy's Leonardo and Germany's Rheinmetall have secured through their joint venture two contracts with the Italian army worth €3.7 billion ($4.16 billion) in total for armoured vehicles, the MF newspaper reported on Thursday.

Details of the Contracts

The orders are for the supply of the A2CS combat vehicles and the new generation MBT tanks and are part of Italy's wider military modernisation programme, the Italian financial daily added.

Company Responses

Rheinmetall declined to comment.

Leonardo CEO Lorenzo Mariani said he could not confirm whether the contract had been signed "as any communication on the matter must be coordinated with our clients".

Joint Venture and Production Plans

Leonardo and Rheinmetall launched their 50-50 joint venture in 2024.

"The programme is ready to enter production from our side. We are actively working on both the tank programme and the Future Combat System (FCS), and are progressing on both in close cooperation with Rheinmetall," Mariani said in Rome.

Strategic Importance and Future Outlook

Speaking on the sidelines of the annual meeting of the state-backed Fondo Italiano d'Investimento, he stressed the importance of tanks for the modernisation of Italy's defence, for exports, and for the broader partnership with Rheinmetall.

Additional Information

($1 = 0.8894 euros)

(Reporting by Alvise Armellini, Emanuele Berro and Giulia Segreti, editing by Francesca Piscioneri)

Key Takeaways

  • The €3.7 billion contracts encompass A2CS infantry combat vehicles and next‑generation main battle tanks, accelerating the Italian Army’s heavy‑platform renewal.
  • Leonardo Rheinmetall Military Vehicles (LRMV), formed in 2024 as a 50‑50 joint venture, acts as prime contractor with at least 60% of work performed in Italy, reinforcing domestic industrial capacity.
  • The contracts are part of a broader €23 billion-plus Italy programme over 10–15 years, offering significant export potential and bolstering Europe’s land‑defence sovereignty.

Frequently Asked Questions

What is the value of the contracts secured by Leonardo and Rheinmetall with the Italian army?
The contracts are worth a total of €3.7 billion ($4.16 billion).
What type of military equipment are included in these contracts?
The contracts cover the supply of A2CS combat vehicles and new generation MBT tanks.
Who are the parties involved in this defence contract?
Italy's Leonardo and Germany's Rheinmetall, via their 50-50 joint venture, secured the contracts with the Italian army.
Are these contracts part of a broader program?
Yes, they are part of Italy's wider military modernization programme.
Has production on the contract begun?
The programme is ready to enter production from Leonardo and Rheinmetall's side.

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