Leonardo’s Board of Directors, convened today under the Chairmanship of Stefano Pontecorvo, examined and unanimously approved 2024 first half results
“The first half results show double-digit growth across all KPIs. In recent months we have also achieved significant goals in strengthening international alliances by taking an active role in promoting European Defense. The agreement with Rheinmetall represents a unique opportunity for the development of the new generation of land defence systems. – Roberto Cingolani, Leonardo CEO and GM, stated.
“The consolidation of the core defense business continues thanks to the acceleration of the digitalisation process and the rationalization of the portfolio with the sale of Underwater Armaments & Systems which gives further impetus to the collaboration between Leonardo and Fincantieri, and the exit from non-core businesses such as IIA and Skydweller. The creation of the new Space Division positions Leonardo in rapidly growing market segments, while targeted acquisitions will strengthen the Cybersecurity business. The efficiency plan is fully operational, with results exceeding expectations. All this confirms our clear direction of travel in line with the objectives of the Industrial Plan”.
1H 2024 financial results
The strong performance recorded by the Group in 2023 continued in the first six months of 2024, with a significant step up in volumes and a solid profitability in all the business segments, showing a further significant increase compared to the prior period. In order to make the Group’s operating performance more comparable, the indicators for the comparative period are also provided in this Report on a pro- forma basis, including the contribution of the Telespazio group, consolidated on a line-by-line basis starting from 1 January 2024.
New Orders and Revenues sharply increased by 18.8% (+15.6% compared to the pro-forma figure of June 2023) and by 15.8% (+10.9% compared to the pro-forma figure) respectively, driven in particular by the Defence Electronics & Security and Helicopters businesses. The growth in Revenues was accompanied by an increase in EBITA of 17.0% (+13.3% compared to the pro-forma figure), bringing the ROS for the period to 6.3% (6.2% at 30 June 2023).
Free Operating Cash Flow for the period also improved by 2.9% (8.4% compared to the pro-forma figure), demonstrating the Group’s ability to keep on the path to strengthen cash generation it has embarked on, though being affected by the usual interim trend that is characterised by cash absorptions in the first part of the year. The FOCF performance and the sale of the minority stake in Leonardo DRS, which occurred in the last quarter of 2023, resulted in a consequent positive impact on the Group’s net debt, which decreased by about 17.5% compared to the comparative period (18.3% compared to the pro-forma figure).
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