Leonardo (LDO) Q3 2024 earnings summary

Executive summary

• Achieved strong commercial and financial progress in Q3 and the first nine months of 2024, with double-digit growth in orders (+7.8%), revenues (+12.4%), and EBITA (+15%), driven by defense and efficiency initiatives.

• Net debt reduced by 19% year-over-year to €3.1 billion, supported by improved cash flow, disciplined capital allocation, and divestments.

• Backlog reached a record €43.6 billion, with a book-to-bill ratio of 1.2x, ensuring over 2.5 years of production coverage.

• Industrial Plan execution advanced, including efficiency measures, portfolio streamlining, and major alliances such as the JV with Rheinmetall.

• Full-year 2024 guidance confirmed despite headwinds in aerostructures and space telco segments.

Financial highlights

• Group revenues increased 12.4% to €12.1 billion year-over-year, with EBITA up 15% to €766 million and return on sales at 6.3%.

• Free operating cash flow improved to -€550 million (+13.7%), with net result at €730 million, including a €366 million one-off gain from Telespazio consolidation.

• Net result before extraordinary items at €364 million (+22.1%); EPS at €1.18, up from €0.48 year-over-year.

• Backlog increased to €43.6 billion (+5.2% year-over-year); book-to-bill ratio above 1.2x.

• Dividend doubled to €0.28 per share, with €177 million paid in the period.

Outlook and guidance

• Full-year 2024 guidance confirmed: 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 supply chain conditions, with efficiency plans and core business performance expected to offset negative contributions from aerostructures and space telco.

• Industrial Plan update, including new strategies for Space and Aerostructures, to be presented in Q1 2025.