Leonardo (LDO) Q2 2024 earnings summary

Executive summary

• Achieved double-digit growth in orders, revenues, and EBITDA/EBITA in H1 2024, with significant net debt reduction and improved cash flow.

• Order intake rose 15.6% to €10.3 billion, revenues up 10.9% to €8.0 billion, and EBITDA/EBITA up 13.3% to €503 million.

• Backlog reached a record €43.3 billion, book-to-bill ratio at 1.3, and return on sales improved to 6.3%.

• Progressed on industrial plan initiatives, including digitalization, efficiency, portfolio streamlining, and international alliances.

• FY 2024 guidance confirmed, reflecting confidence in continued growth and operational efficiency.

Financial highlights

• Free operating cash flow improved by 8.4% to -€502 million, reflecting usual interim cash absorption.

• Net result reached €555 million, boosted by Telespazio consolidation gain; ordinary net result at €189 million.

• Dividend doubled to €0.28 per share; investments in H1 totaled ~€350 million.

• Net debt reduced by 18% year-over-year to €3.0 billion.

• EBIT grew to €390 million (+4%), with EBITA margin (ROS) at 6.3%.

Outlook and guidance

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

• Guidance assumes no major deterioration in geopolitical, macroeconomic, or supply chain conditions.

• Risks from Aerostructures and telco satellite business to be offset by efficiencies and strong defense/governmental performance.