Leonardo (LDO) Q2 2024 earnings summary

Executive summary

• Achieved strong H1 2024 results with double-digit growth in orders, revenues, and EBITA/EBITDA, significant net debt reduction, and a record backlog, driven by robust performance in Defence Electronics, Security, and Helicopters.

• Net result surged to €555 million, mainly due to a €366 million capital gain from Telespazio consolidation.

• Confirmed FY 2024 guidance, reflecting confidence in continued growth, operational efficiency, and portfolio optimization.

• Strategic initiatives included international alliances, portfolio streamlining, and the creation of a new Space Division.

• Efficiency plans and disciplined capital allocation underpin growth and deleveraging.

Financial highlights

• New orders: €10.3 billion (+15.6% to +18.8%); revenues: €8.0 billion (+10.9% to +15.8%); EBITA: €503 million (+13.3% to +17.0%).

• EBITDA: €828 million (+17.8%); EBIT: €390 million (+4% to +6%); net result: €555 million (+160.6% to +166.8%).

• Free Operating Cash Flow (FOCF): -€502 million (improved by 2.9% to 8.4%); net debt: €3.0 billion (down 17.5% to 18.3% YoY).

• Dividend doubled to €0.28 per share; €175 million dividends paid in H1 2024; investments ~€350 million.

• Workforce increased to 58,280 (+11.4%).

Outlook and guidance

• FY 2024 guidance confirmed: new orders ~€19.5 billion, revenues ~€16.8 billion, EBITA ~€1.44 billion, FOCF ~€770 million, net debt ~€2.0 billion.

• Guidance assumes stable geopolitical and macroeconomic conditions, with risks from Aerostructures and telco satellite business offset by efficiencies.