Mentioned:FincantieriLeonardoMBDA$4.2B · Government Support
Italy has signed a €3.7 billion ($4.2 billion) contract for two DDX-class naval destroyers to be built by the Fincantieri-Leonardo joint venture Orizzonte Sistemi Navali. The vessels will deliver in 2033 and 2035.
What's happening
- Orizzonte Sistemi Navali, 51% owned by Fincantieri and 49% by Leonardo, will build two DDX destroyers displacing 13,500 tonnes each and measuring 180 meters long.
- The ships will carry crews of 251 personnel and have a range of 4,000 nautical miles, with delivery scheduled for 2033 and 2035.
- Leonardo will supply the SADOC 5 command-and-control system, digital S-band AESA radar, and MBDA will provide weapon systems.
- The contract was brokered by European procurement office OCCAR and includes advanced digitalization, DC power sub-networks with energy storage, and new Ship Management System software.
Why it matters
- The DDX order represents sustained demand for major surface combatants from a NATO ally, supporting European shipbuilding industrial capacity and employment.
- These destroyers will replace Italy's two aging Horizon-class vessels, modernizing Italian naval strike and air defense capabilities across the 2030s.
- The deal locks in production work for Fincantieri through the mid-2030s, critical for the shipyard's capacity planning and workforce stability.
Going deeper
- The DDX program follows Italy's recent orders for FREMM-class frigates, PPA multimission ships, landing helicopter docks, submarines and logistics vessels, indicating a broad fleet renewal initiative.
- Leonardo's SADOC 5 combat system and AESA radar represent integration of state-of-the-art Italian and European sensor and command-and-control technology into the platform.
Financial impact
- Fincantieri will recognize revenue over the 2026 to 2035 period as construction milestones are reached, with the contract representing a ceiling value of €3.7 billion split 51-49 with Leonardo through OSN.
- Leonardo will record revenue for SADOC 5 system, AESA radar and integration work as delivered to OSN, timing aligned with construction and delivery schedules through 2035.
The fine print
- The contract is structured as a joint venture agreement between Fincantieri and Leonardo through Orizzonte Sistemi Navali, with final delivery dependent on meeting technical and schedule milestones over nine years.
Source: Defense News · Sep 24, 2026 · Drafted with Claude, reviewed by Industrial Base Alpha.
