ROME — Leonardo CEO Roberto Cingolani is to be replaced at the helm of the Italian defense company in a surprise move by the Italian government which sources said was related to his decision to shift Leonardo’s focus away from kinetic products as wars rage around the world.
At the end of his three year mandate running the Italian state-controlled firm, Cingolani appeared on course for another term after overseeing a slew of new industry team-ups and a major rise in share value.
But on Thursday the Italian government said its pick for new CEO was Lorenzo Mariani, currently head of the Italian arm of European missile house MBDA.
Mariani is no stranger to Leonardo. When Cingolani was named CEO three years ago, Mariani was appointed co-general manager, effectively Cingolani’s number two.
A year ago he was moved over to MBDA, a company he had worked at before his arrival at Leonardo.
Previously he had also held down various roles at Leonardo including commercial director and head of electronics, making him very much a company man. Before starting his career he served as an officer in the Italian navy.
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“Mariani is a safe choice, a top manager who has been at Leonardo before, knows the industry and military interlocutors,” said Alessandro Marrone, who heads the defense program at Rome think tank IAI.
“There will be no learning curve as defense budgets accelerate,” he added.
For his part, Cingolani oversaw a four-fold increase in Leonardo’s share price during his three year tenure, as the defense sector flourished thanks to rearmament programs triggered by the Ukraine war.
Last month Leonardo predicted it would see annual orders of €32 billion ($37 billion) a year by 2030, up from €23.8 billion last year, and announced a bullish new industrial plan.
No explanation has been given by the Italian government led by Giorgia Meloni for the change in management, and the decision drew criticism from opposition politician Carlo Calenda.
“It’s absurd to remove Cingolani like this without any explanations in a sensitive sector where he was appreciated by investors and partners. And it’s necessary for the government to clarify whether there are reasons of security or performance,” he posted on X.
Leonardo’s share price dropped in early trading on Friday.
A trained physicist, Cingolani served as “green transition” minister in a former Italian government in 2021 before Meloni picked him to lead Leonardo in 2023.
Meloni chose him despite her defense minister Guido Crosetto pushing at the time for the appointment of Mariani as CEO.
Cingolani forged new team-ups with Turkey’s Baykar to build drones in Italy and with Rheinmetall to build tanks in Italy.
He also stressed the need for Leonardo to increase its focus on cyber security and digitalization and recently launched Leonardo’s new Michelangelo Dome, a multi-layered air defense system.
Two Italian experts who declined to be named said Cingolani’s focus on non-kinetic programs convinced the government to opt instead for Mariani, who is more closely linked to nuts and bolts armaments programs.
“Cingolani was keener on the non-kinetic portfolio at Leonardo, but high-end, large-scale conflicts are the name of the game right now,” said one analyst. “Hard core defense is at the top of the agenda for armed forces and companies. You need deep engagement with customers about hard core needs,” he added.
A second source who was knowledgeable of the government’s decision said, “Cingolani put the focus on cyber programs when Mariani was at MBDA guaranteeing accelerated extra production of missiles which were perhaps simpler but more essential at this time,” he said.
The source noted that Pierroberto Folgiero, the CEO of another state controlled Italian firm, Fincantieri, had also promised the government a reduction in production times for naval vessels.
Tom Kington is the Italy correspondent for Defense News.
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