Fincantieri (FCT) Q2 2024 earnings summary

Executive summary

• Completed a €400 million rights issue, fully subscribed, to fund the UAS acquisition from Leonardo, with closing expected by early 2025 and a positive market response.

• Order intake reached €7.6 billion, over three times 1H 2023, with a record total backlog of €41.1 billion, providing visibility up to 2032.

• Revenues at €3.68 billion, up 0.3% year-over-year; EBITDA at €214 million, up 16% with margin at 5.8%.

• Adjusted net result was negative €10 million, mainly due to higher depreciation, amortization, and one-off costs; net result for the period negative €27 million.

• Deleveraging ahead of plan, with net financial position at negative €2.42 billion, leverage ratio at 5.7x, expected to improve to 4.5–5.5x by year-end.

Financial highlights

• Revenues at €3,681 million (+0.3% YoY); EBITDA at €214 million (+16% YoY), margin at 5.8% (up from 5.0%).

• Net financial position at negative €2.42 billion, improved from -€2.81 billion in 1H 2023.

• Order intake at €7.6 billion (3.6x 1H 2023); backlog at €27.4 billion (+19% vs. FY 2023); total backlog at €41.1 billion (5.4x 2023 revenues).

• Adjusted net result negative €10 million; net result negative €27 million, mainly due to extraordinary items.

• EBIT at €91 million (2.5% margin), up from €72 million (2.0%) in 1H 2023.

Outlook and guidance

• 2024 revenue target confirmed at ~€8 billion, with EBITDA margin around 6%.

• Leverage ratio (NFP/EBITDA) expected to improve to 4.5–5.5x by year-end, better than previous guidance.

• Business plan targets revenues of ~€10 billion and EBITDA margin of ~8% by 2027, with NFP/EBITDA at 2.5–3.5x.

• Shipbuilding revenues expected to accelerate in H2 2024, especially with the Indonesian contract becoming effective.

• Strong cruise and defense order trends expected to continue, with robust demand driven by fleet renewal and environmental regulations.