On May 25, 2025, activists from Palestine Action Scotland targeted Castle Precision Engineering, a contractor linked to Leonardo, accusing the arms manufacturer of complicity in the arms supply chain that supports alleged genocidal actions by Israel. The protest, which involved extensive red paint vandalism on the contractor's facility in Glasgow, draws attention to Leonardo's economic ties and its collaboration with partners involved in controversial defense manufacturing.

Leonardo, one of the world's largest arms manufacturers, forecast a €6 billion ($6.6 billion) revenue upside from increased European defense spending. CEO Roberto Cingolani detailed in an industrial plan update that a 1% increase in GDP spending on defense across the EU could significantly boost procurement orders, positioning the company to capture a sizable portion of the new market. The forecast comes amid calls for strategic autonomy in Europe and growing geopolitical tensions, which may contribute to a rearmament trend that risks fueling militaristic and authoritarian policies.

Leonardo has issued a clear denial regarding allegations of supplying OTO Melara 76/62 naval guns to the Myanmar Navy. The company emphasized that all arms sales are subject to strict Italian government oversight and export controls, reinforcing its commitment to complying with international sanctions and ethical business practices.

Leonardo has publicly committed to enforcing its Group’s Code of Ethics regarding human rights by adopting rigorous processes for employee management, supplier relationships, and product sales, aligning its operations with international human rights standards and initiatives such as the UN Global Compact and SDG 16 Action Platform.

Leonardo released a detailed response outlining its commitment to human rights by adhering to its Group’s Code of Ethics and Charter of Values. The company emphasized the establishment of an Internal Compliance Program and a comprehensive Human Rights Impact Assessment (HRIA) process, with enhanced due diligence specifically for transactions in politically sensitive regions such as Yemen and Saudi Arabia.

Approximately one hundred students occupied Leonardo's Turin headquarters on November 13, 2024, denouncing the company's provision of remote technical assistance and spare parts to Israel's air force. The protesters, waving Palestinian flags and hanging banners accusing the company of complicity in genocide, condemned Leonardo's arms export practices amidst ongoing conflict in Gaza.

In an opinion piece on Business & Human Rights Resource Centre, arms manufacturers are warned of complicity in crimes against humanity in Gaza due to their defense export practices. While Leonardo is not mentioned by name, as a major arms manufacturer it is implicitly subject to similar scrutiny regarding its human rights due diligence and ethical business practices in conflict zones.

Leonardo, one of the world's largest arms manufacturers, has called for a reform of the fragmented EU defence industry, arguing for greater integration and efficiency among member states. This public call reflects the company's engagement in shaping policy debates within the European defence sector.

Leonardo and KNDS signed an agreement on December 13, 2023, under the auspices of the Italian Ministry of Defense to deepen cooperation in European defense capabilities. The alliance focuses on the development of land-based electronics and armored vehicle platforms, including the LEOPARD 2 A8 for the Italian Army, and aims to bolster the national industrial base for future European and export projects.

Leonardo's advanced defense systems, including naval guns and fighter jets, have been deployed by the Israeli military in operations targeting Gaza. The use of these weapons, which were developed and produced by Leonardo and its subsidiaries (including through the acquisition of RADA Electronic Industries), has been linked to indiscriminate attacks on densely populated civilian areas, drawing sharp criticism from watchdogs and anti-war activists.

Leonardo is participating in the GANIMEDE technology transfer project alongside MICC and Finmeccanica to develop advanced video analytics algorithms. The project focuses on object detection, counting, and density estimation for use in large‑scale video surveillance, with potential applications in security and military operations.