New orders of € 5.8 bn (+14.9%1), revenues of € 3.7 bn (+15.3%1), EBITDA of € 182 mln (+67%1), FOCF of € -621 mln, up 11.5%1. 2024 guidance confirmed.
Leonardo’s Board of Directors, convened today under the Chairmanship of Stefano Pontecorvo, examined and unanimously approved the results for the first quarter 2024.
“We are fully focused on executing the Industrial Plan. The consolidation of the defence core business progresses very well thanks to the acceleration of the digitalization processes, creating new revenue streams and generating cost efficiencies, embedding AI and Digital Twin in all product catalogues and working on the Digital Continuum of the Armed Forces.” – Roberto Cingolani, CEO and GM of Leonardo, stated
“The future activities are shaped by the reorganization and governance changes creating the new Space Division, boosting Cyber Security activities and developing a strategy to leverage Generative AI and multidomain capabilities across all Leonardo platforms. The efficiency and saving plan is fully in place and it is on track to achieve full year targets. Finally, for the inorganic growth of the Plan, we are continuing to strengthen international alliances taking an active role in promoting a European Defence Framework. All of these will allow us to deliver growth, higher profitability and better cash conversion.” – Roberto Cingolani added.
1Q 2024 Results
The excellent performance already recorded by the Group in 2023 continued in the first three months of 2024, with a solid profitability in all the business segments, showing a further significant growth 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 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 sharply increased by 18.2% (+14.9% compared to the pro-forma figure of March 2023), specifically driven by the European component of the Defence Electronics & Security business.
Revenues increased by 20.8% (+15.3% compared to the pro-forma figure), mainly thanks to the performance of the Defence Electronics & Security and Helicopters sectors. The growth of revenues is accompanied by a significant increase in EBITA of 73.3% (+67.0% compared to the pro-forma figure), bringing the ROS for the period to 5% (3.5% at 31 March 2023).
Free Operating Cash Flow for the period also improved by 9.7% (11.5% 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 results in a consequent positive impact on the Group’s net debt, which decreased by approximately 21% compared to the comparative period, including also the effect of the Leonardo DRS stake monetization.
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