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 strong market response.

• Order intake reached €7.6 billion, 3.6x higher than 1H 2023, with record total backlog at €41.1 billion, providing visibility up to 2032.

• Revenues for 1H 2024 were €3,681 million, up 0.3% year-over-year; EBITDA rose 16% to €214 million, with margin at 5.8%.

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

• Deleveraging ahead of plan, with net financial position at negative €2.42 billion and 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%).

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

• Net financial position at -€2,424 million, improved from -€2,813 million in 1H 2023, but slightly higher than FY 2023.

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

• Capital expenditure at €114 million, up 17% year-over-year; headcount increased to 22,064 (+4% from Dec 2023).

Outlook and guidance

• 2024 revenue guidance confirmed at ~€8 billion (+4.5%), with EBITDA margin around 6%.

• Leverage ratio (NFP/EBITDA) expected to improve to 4.5x–5.5x (3.7x–4.7x including rights issue effect), 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.

• Strong cruise and defense order trends expected to continue, with robust demand in offshore wind support vessels.

• Strategic focus on operational efficiency, workforce development, decarbonization, and digital transition.