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Leonardo SpA (FINMF) Q4 2024 Earnings Call Highlights: Strong Financial Performance and ...

In This Article:

  • New Orders: EUR20.9 billion, up 12.2% from the previous year.

  • Order Backlog: Exceeds EUR44 billion.

  • Revenue: EUR17.8 billion, an increase of over 11% from the previous year.

  • EBITA: EUR1.52 billion, up 12.9% from EUR1.35 billion in 2023.

  • Return on Sales: Increased by 0.1 percentage point to 8.6%.

  • Free Operating Cash Flow: EUR826 million, up 26.7% from the guidance of EUR770 million.

  • Net Debt: Reduced to EUR1.8 billion from EUR2.3 billion, a reduction of approximately 22.7%.

  • Efficiency Savings: EUR191 million, exceeding the target of EUR150 million.

  • Helicopters Revenue: EUR5.2 billion, up 11%.

  • Defense Electronics Revenue: EUR4.8 billion, up 9.4%.

  • DRS Revenue: $3.2 billion, up 14%.

  • Cyber and Security Solutions Revenue: EUR648 million, up 9%.

  • Aircraft Revenue: EUR2.9 billion, stable compared to the previous year.

  • Aerostructures Revenue: EUR746 million, higher than the previous year.

  • Space Revenue: EUR906 million, with a growth of about 30%.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Leonardo SpA (FINMF) reported a significant increase in new orders, reaching EUR20.9 billion, a 12.2% increase from the previous year.

  • The company achieved a substantial revenue growth of 11%, increasing from EUR16 billion to EUR17.8 billion.

  • EBITA increased by 12.9% to EUR1.52 billion, indicating improved operational efficiency.

  • Free operating cash flow rose by 26.7% to EUR826 million, surpassing the guidance of EUR770 million.

  • Net debt was reduced by approximately 22.7%, from EUR2.3 billion to EUR1.8 billion, demonstrating strong financial management.

Negative Points

  • The Aerostructures division continues to face challenges due to the Boeing crisis, impacting profitability.

  • The SatCom business, connected to the space alliance with Thales, also experienced difficulties, affecting overall performance.

  • Despite improvements, the delivery rate for the B787 fuselage remains lower than expected, affecting the Aerostructures division.

  • The Space division's performance was impacted by challenges in the telco satellite segment, leading to lower EBITA.

  • The company faces ongoing external challenges in the B787 program and the Space telco segment, which could affect future performance.

Q & A Highlights

Q: Can you provide more details on the ongoing negotiations regarding Aerostructures? Are you considering multiple partners to diversify from the 787 program? A: Roberto Cingolani, CEO: We have identified a potential co-investor involved in aerospace and defense, and negotiations are ongoing. I cannot disclose more details at this moment, but we are committed to finding a solution soon. Regarding the 787, we have received a new delivery schedule from Boeing, but the delivery rate is currently lower than expected.