Leonardo has delivered another year of strong financial performance, meeting or exceeding targets. Orders show continuous and structural growth, reaching close to the level of €18 billion (over €18.7 billion on a pro-forma basis consolidating Telespazio), with a strong performance in European electronics. The strong growth and positive commercial trend is even more relevant considering that 2022 orders included jumbo orders for the AW149 helicopters in Poland.
Revenues are growing by 3.9% (+4.1% pro-forma consolidating Telespazio), thanks also to the performance of Defense Electronics and Security and Helicopters, as well as the significant recovery of Aerostructures (+34%). Revenue growth is combined with growth in EBITA of 5.8% (+6% pro-forma consolidating Telespazio).
EBITA continues to be driven by Defense Electronics and Security, with a strong contribution from the European component, and by the ongoing Aerostructures recovery, bringing ROS to 8.4%.
The financial performance is strong, with the cash flow (FOCF) recording an increase of 17.8% compared to the already material figure recorded in 2022, demonstrating the group’s ability to continue the efficiency path undertaken leading to growing cash flow generation and conversion.
Group net debt continues to decrease, with an improvement of over 23% compared to 2022, and stands at €2.3 billion; the significant cash generation and the proceeds deriving from the sale of the minority stake of DRS have allowed the group to continue on the path of debt reduction.
“Our strong commercial performance across our businesses, financial flexibility, cost and investment discipline, are the basis of the positive results achieved by the group in 2023.” Roberto Cingolani, CEO and GM of Leonardo stated. “The performances achieved are also receiving recognition from the main credit rating agencies and the investment grade rating is an example of this,” Cingolani concluded.
(£1.00 = €1.17 at time of publication).
