Leonardo, Fincantieri Win €3.7B Contract for Two Italian Navy DDX Destroyers

The Italian Navy is moving ahead with its next-generation destroyer program after Orizzonte Sistemi Navali, the joint venture between Fincantieri and Leonardo, signed a contract with the Organisation for Joint Armament Co-operation, OCCAR, valued at approximately €3.7 billion.

According to the companies and OCCAR, the program covers the development, production, logistics studies and initial in-service support for two DDX destroyers. Delivery of the first vessel is scheduled for 2033, followed by the second in 2035. Approximately €1.3 billion of the overall contract value consists of options.

Scope of the Italian Navy DDX Destroyer Contract

Orizzonte Sistemi Navali, or OSN, is owned 51% by Fincantieri and 49% by Leonardo. The joint venture signed the agreement with OCCAR, the European organization responsible for managing complex cooperative defense programs.

The DDX contract covers development and production of the two ships, along with logistics studies and Initial In-Service Support. Fincantieri will act as platform system integrator, while Leonardo is responsible for development of the combat system.

The companies said OSN will subsequently enter into sub-supply contracts with Fincantieri and Leonardo. The planned Fincantieri sub-contract is valued at approximately €1.8 billion, including about €800 million in options. Leonardo’s portion is approximately €1.7 billion, including about €480 million in options.

The contract therefore should not be interpreted as €3.7 billion of unrestricted immediate expenditure. The announced total includes option elements associated with the program.

DDX Destroyer Technical and Operational Context

The DDX is being developed as a multi-mission surface combatant for the Italian Navy, with its design centered on integrated sensors, weapons, command and control, and platform-management systems.

OCCAR says the ships are intended to replace the Italian Navy’s Durand de la Penne-class destroyers. The organization identifies fleet air and missile defense, long-range strike, command and control, and anti-submarine warfare among the DDX mission areas.

The industrial team says the platform will feature extensive digitalization and automation, including integration between sensors, weapon systems, multi-domain command and control systems and platform-management functions.

Leonardo’s contribution includes the SADOC 5 C5I combat management system and a high-power digital S-band active electronically scanned array radar. The combat system will also incorporate an MBDA weapon system.

The official announcements describe the DDX as being designed to address a broad range of aerial and missile threats. OCCAR specifically identifies ballistic and hypersonic threats among the threat categories considered by the program.

The companies also identify a DC power sub-network with energy storage, a new stabilization system integrated with the steering system, and digital developments to the Ship Management System as elements of the platform design.

OCCAR says the ships are being designed with growth margins for future technologies, including directed-energy weapons. The announcement does not disclose a specific directed-energy weapon, power level or deployment date for such a system.

Operational Impact on the Italian Navy Fleet

The DDX program represents a planned transition from the Italian Navy’s existing Durand de la Penne-class destroyers to a new surface combatant built around a more integrated combat-system architecture.

From an operational perspective, the emphasis on integrated air and missile defense is significant because the destroyer is intended to combine sensing, command and control and weapons within a common architecture rather than treating those functions as separate ship systems.

OCCAR also states that DDX ships are being designed for operations with multinational forces and allied naval units. The program therefore places interoperability and information sharing alongside the ship’s individual combat capabilities.

The planned architecture also reflects the broader move toward multi-domain naval operations. OCCAR says the ships are intended to work with manned and unmanned systems across multiple domains.

Specific missile types, interceptor quantities, radar detection ranges, missile engagement ranges, ship displacement, propulsion performance and weapons load were not disclosed in the contract announcement. Those figures should not be treated as established DDX specifications unless separately confirmed by an authoritative source.

Contract Breakdown: Leonardo and Fincantieri DDX Award Details

Contract Value

The total announced contract value is approximately €3.7 billion. About €1.3 billion is identified as options.

The announced allocation is approximately €1.8 billion for Fincantieri and €1.7 billion for Leonardo, through subsequent OSN sub-supply contracts.

Contractor

The prime contracting entity is Orizzonte Sistemi Navali, a joint venture owned 51% by Fincantieri and 49% by Leonardo.

OCCAR signed the agreement on behalf of Italy.

Contract Type

The award covers development, production, logistics studies and Initial In-Service Support for the DDX program.

The official announcements do not characterize the award using a U.S.-style contract designation such as Firm-Fixed-Price, Cost-Plus-Fixed-Fee or IDIQ. It should therefore not be assigned one of those classifications without additional contract documentation.

Work Locations

The announcement identifies Italian shipbuilding and industrial participation but does not provide a complete list of contract performance locations.

Specific shipyard locations and individual work allocations beyond the stated Fincantieri and Leonardo responsibilities were not disclosed in the announcement.

Performance Period

The first DDX destroyer is scheduled for delivery in 2033, with the second scheduled for 2035.

The announcement does not provide a detailed construction schedule, keel-laying date or sea-trial timeline.

Funding

The announcement does not disclose a detailed funding breakdown or annual appropriation schedule.

Options Or Follow-On Work

Approximately €1.3 billion of the €3.7 billion contract value consists of options.

OCCAR’s program description also identifies an option for a second DDX vessel, while the industry announcement describes the overall contract as covering two destroyers. The contract value and delivery schedule reported by the companies and Reuters therefore reflect the two-ship program, with options included in the stated total.

Fincantieri and Leonardo Defense Industrial Base and Acquisition Impact

The DDX program places Fincantieri and Leonardo at the center of a major Italian surface-combatant effort.

Fincantieri is responsible for the platform as system integrator, while Leonardo is developing the combat system. This division places ship construction, platform integration, sensors, command and control and weapons integration within a closely coordinated national industrial framework.

For the Italian defense industry, the program also provides a long-duration workload extending into the 2030s. Fincantieri and Leonardo said the program will draw on established design, engineering and production capabilities developed through earlier naval programs.

From an acquisition perspective, the program is also notable because OCCAR is managing the effort rather than Italy contracting directly through a conventional national procurement structure. OCCAR’s role places the DDX program within the organization’s broader model for managing complex European defense equipment programs.

Italian Navy DDX Program Milestones and Next Steps

The September 24, 2026 contract signing formally launches the DDX program’s development and production phase.

The next industrial step is the planned conclusion of sub-supply contracts between OSN, Fincantieri and Leonardo. The program will then progress through design, development, production, logistics work and initial in-service support before the planned delivery of the two ships.

The first vessel is scheduled for delivery in 2033, with the second following in 2035.

Additional details on construction milestones, shipyard schedules, individual weapon fits and detailed performance specifications have not been disclosed in the announcements reviewed for this report.