Fincantieri S.p.A. ((IT:FCT)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Fincantieri S.p.A.’s recent earnings call painted a picture of robust financial health, marked by impressive revenue and profitability growth. The company reported a record-high backlog and substantial order intake, driven by operational efficiencies and strategic initiatives in both the cruise and defense segments. Despite a delay in the delivery of a prototype ship, the overall sentiment and forward-looking statements were overwhelmingly positive.
Impressive Revenue Growth
Fincantieri reported a remarkable 20.5% year-on-year increase in revenues, reaching EUR 6.725 billion. This growth was bolstered by strong contributions across all business segments, with shipbuilding being a particularly significant driver.
Significant Profitability Increase
The company’s EBITDA surged by 40.4%, amounting to EUR 461 million. This increase was accompanied by an improvement in the EBITDA margin, which rose to 6.9% from 6.3% at the end of 2024, highlighting enhanced operational efficiency.
Record-High Backlog
Fincantieri’s backlog reached an unprecedented EUR 41 billion, marking a 32.3% increase compared to the end of 2024. The total backlog now stands at EUR 61.1 billion, approximately 7.5 times the revenues of 2024, providing a solid foundation for future growth.
Strong Order Intake
The company achieved an impressive order intake of EUR 16 billion, an 88.4% increase from the previous year. This resulted in a book-to-bill ratio of 2.4x, underscoring the company’s strong market position and demand for its offerings.
Operational Efficiency in Cruise Segment
Fincantieri’s cruise segment saw higher operational efficiency, which, along with a greater contribution from the defense segment, drove margin expansion and contributed to the company’s strong financial performance.
Deleveraging Progress
The company made progress in deleveraging, with net debt improving slightly to EUR 1.65 billion. The net debt-to-EBITDA ratio decreased to 2.6x from 3.3x at the end of 2024, indicating a healthier balance sheet.
Delay in Prototype Ship Delivery
Fincantieri announced a delay in the delivery of a prototype ship, originally expected at the end of 2025, now slated for early 2026. The delay is attributed to the high technological requirements of the project.
Forward-Looking Guidance
Looking ahead, Fincantieri provided robust guidance for the remainder of 2025. The company anticipates revenues to reach approximately EUR 9 billion, with an EBITDA margin exceeding 7%. The net debt-to-EBITDA ratio is expected to remain stable between 2.7x and 3x. The company also forecasts positive net income by year-end, supported by operational efficiencies and strategic partnerships in the defense and underwater segments.
In conclusion, Fincantieri S.p.A.’s earnings call highlighted a strong financial performance with significant growth in revenue and profitability. The company’s strategic initiatives and operational efficiencies have positioned it well for future success, despite minor setbacks such as the delay in prototype ship delivery. Investors and stakeholders can remain optimistic about Fincantieri’s trajectory, given its robust backlog and strong order intake.