Leonardo (LDO) Q3 2024 earnings summary

Executive summary

• Achieved strong commercial and financial progress in the first nine months of 2024, with revenues up 17.6% and EBITA up 18.9% year-over-year, driven by Defence Electronics & Security and Helicopters.

• Orders rose to €14.8bn (+11.1% year-over-year, +7.8% pro-forma), with a record backlog of €43.6bn, ensuring over 2.5 years of production coverage.

• Net result surged to €730m, including a €366m one-off gain from Telespazio consolidation; net debt reduced by 19% year-over-year to €3.1bn.

• Industrial Plan execution advanced, with efficiency measures, portfolio streamlining, and international alliances, including a major JV with Rheinmetall.

• Full-year 2024 guidance confirmed despite headwinds in Aerostructures and Space TelCo segments.

Financial highlights

• Revenues reached €12.1bn (+17.6%), EBITA €766m (+18.9%), EBIT €636m (+18.4%), and ROS stable at 6.3%.

• Free Operating Cash Flow improved to -€550m (+13.7% pro-forma); net debt at €3.1bn, down from €3.8bn a year ago.

• Net result before extraordinary items at €364m (+25.5%), net result including extraordinary items at €730m (+142.5%), driven by Telespazio consolidation.

• Book-to-bill ratio at 1.2x, with backlog at €43.6bn (+5.2% year-over-year).

• Dividend doubled to €0.28 per share.

Outlook and guidance

• Full-year 2024 guidance confirmed: orders ~€19.5bn, revenues ~€16.8bn, EBITA ~€1.44bn, FOCF ~€770m, net debt ~€2.0bn.

• Guidance assumes stable geopolitical and supply chain conditions, increased dividend, and continued deleveraging.

• Efficiency plans and core business performance are expected to offset negative contributions from Aerostructures and Space TelCo.

• New Space Division industrial plan to be released Q1 2025; further transformation actions in Aerostructures under evaluation.