Contract Signed for In-Service Support of FREMM Frigates

Orizzonte Sistemi Navali (OSN), the joint venture owned by Fincantieri and Leonardo with respective stakes of 51% and 49% has signed the Through Life Sustainment Management (TLSM 2) in-service support contract with OCCAR (Organisation for Joint Armament Cooperation). This marks the continuation of a long-standing strategic collaboration that began with the delivery of the first FREMM-class frigates and their related logistical support. TLSM2 is an in-service support contract for all systems and equipments on FREMM units built and delivered by OSN to the Italian Navy.

The agreement, signed by Giovanni Sorrentino, CEO of Orizzonte Sistemi Navali, and Joachim Sucker, Director of OCCAR, is valued at approximately €764 million (of which around €335 million is optional). Concurrently, sub- contracts are being finalized with Fincantieri and Leonardo, worth approximately 265 million euros (with about 130 million euros in options) and 190 million euros (about 78 million euros in options), respectively, alongside other sector players including MBDA, Elettronica, and TMDS.

This contract represents a major step forward in enhancing the FREMM fleet’s operational readiness and maintenance capabilities - a technological benchmark for the Italian Navy. Other industrial partners involved include MBDA, Elettronica, and several small and medium-sized enterprises from Italy’s naval and electronics sectors.

With a duration of five and a half years, TLSM2 introduces an increasingly integrated and innovative model of cooperation among national and foreign industry players, and the Italian Navy, aimed at optimizing the efficiency and resilience of the national logistics system.

A key element of the program is the integration of industry and its personnel into the Navy’s processes, information systems, and facilities, with a particular focus on improving materials management and preventive maintenance planning. In this context, the consistent use of the Navy’s digital platforms for service execution and reporting and the support of the navy personnel too is also essential.

Engineering support also plays a central role in the program, with the goal of optimizing the overall naval support system, including onshore-based activities or specific structural interventions. Major maintenance will be scheduled and carried out during planned unit downtimes, ensuring fleet availability and minimizing operational impact.

The renewal of the TLSM contract confirms the close collaboration among OSN, Fincantieri, Leonardo, OCCAR, and the Italian Navy, underscoring shared values of technological excellence, long-term operational sustainability, and national capability development.

Pierroberto Folgiero, CEO and Managing Director of Fincantieri, commented: “After-sales support has become as strategically important as shipbuilding itself. It is a key factor in ensuring the long-term operational continuity and effectiveness of naval assets. In this area, a strong synergy has developed between the Italian Navy and Fincantieri—a relationship built on structured, ongoing collaboration and mutual trust, which now stands out as a hallmark of Italy’s industrial system. For this reason, Fincantieri is decisively investing in strengthening its after-sales service offering, creating a dedicated business line that the company is increasingly promoting at the international level.”

Carlo Gualdaroni, Co-General Manager Business of Leonardo and Chairman of Orizzonte Sistemi Navali, stated,“This programme illustrates our commitment to designing and supplying high-tech integrated solutions and capabilities for naval applications as well as – together with our partners – ensuring a constant presence in support of the Italian Navy’s operations, leveraging innovative and modern services. Delivering these services guarantees the operator can make the most of the advanced technologies on the field. We will continue to work in synergy with the Italian Navy, according to the principles of efficiency and effectiveness.”

Giovanni Sorrentino, CEO of Orizzonte Sistemi Navali, stated: "The signing of this contract represents a key milestone in strengthening both the operational capability and long-term sustainability of our naval units. It reflects a shared vision between the Armed Forces and industry, focused on ensuring efficiency, innovation, and continuity in logistical support. This achievement highlights the importance of partnership and the commitment we share in building the future of Defence together."

The agreement with Fincantieri constitutes a related-party transaction of greater importance. For Leonardo, the expected sub- contract qualifies as a related-party transaction of lesser importance, based on the contract’s value and the applicable relevance indexes. Both transactions comply with the relevant legal and regulatory frameworks, and benefit from exemptions granted for transactions with subsidiaries (including jointly controlled entities), as provided for by current regulations and internal procedures.