Fincantieri (FCT) Q3 2024 earnings summary

Executive summary

• Revenues rose 3.7% year-over-year to €5.583 billion, with EBITDA up 19% to €328 million and margin improving to 5.9% from 5.1% in 9M 2023.

• Order intake more than doubled to €8.5 billion, driving backlog to €26.4 billion (+14.3% vs. FY 2023) and total backlog (including soft backlog) to €40.1 billion, or 5.2x 2023 revenues, providing visibility up to 2032.

• Delivered 12 ships in 9M 2024, with a portfolio of 95 ships scheduled for delivery through 2032.

• 2024 guidance raised: revenues expected above €8 billion, EBITDA margin around 6%, and leverage ratio (NFP/EBITDA) between 4.5 and 5 times.

• Net financial position negative at €2,059 million, improving from €2,705 million in 9M 2023, aided by a July 2024 capital increase.

Financial highlights

• Revenues reached €5.583 billion, up 3.7% year-over-year, led by offshore and equipment systems/infrastructure segments.

• EBITDA margin improved to 5.9% (from 5.1% in 9M 2023), with absolute EBITDA up 19% to €328 million.

• Net financial position negative at €2,059 million, improving from €2,705 million in 9M 2023, with NFP including temporary effect of July 2024 capital increase.

• Net working capital at -€198 million, slightly higher than -€118 million at end-2023, mainly due to cruise segment contract progress.

• Order intake surged 110.5% year-over-year to €8,504 million, with a book-to-bill ratio of 1.5x.

Outlook and guidance

• Year-end 2024 revenues expected to exceed €8 billion, with EBITDA margin around 6%.

• Leverage ratio (NFP/EBITDA) guided between 4.5 and 5 times, reflecting improved cash generation and capital increase.

• Business Plan targets revenues of ~€10 billion and EBITDA margin of ~8% by 2027, with significant deleveraging.

• Shipbuilding production and deliveries expected to accelerate in Q4, with Indonesian Ministry of Defense contract becoming effective.

• Focus remains on operational efficiency, system integration in defense, decarbonization, and digitalization.