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- Revenue: Increased by 3.7% year on year to EUR 5.6 billion.
- EBITDA: Rose by 19% to EUR 328 million with a margin of 5.9%.
- Net Financial Position: Negative EUR 2,059 million, excluding rights issue effect, negative EUR 2,440 million.
- Order Intake: EUR 8.5 billion, more than twice the orders of the first nine months of 2023.
- Backlog: EUR 26.4 billion, up 14.3% compared to full year 2023.
- Total (EPA:TTEF) Backlog: Including soft backlog, reached EUR 40.1 billion.
- Ship Deliveries: 12 ships delivered in the first nine months of 2024.
- Leverage Ratio Guidance: Expected between 4.5 and 5 times, excluding capital increase effect.
- Year-End Revenue Guidance: Expected in excess of EUR 8 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Fincantieri SpA (BIT:FCT) (FNCNF) reported a solid top-line growth with revenues up 3.7% year-on-year, reaching EUR 5.6 billion.
- EBITDA increased by 19% compared to the first nine months of 2023, reaching EUR 328 million, indicating successful efficiency initiatives.
- The company has a robust backlog of EUR 26.4 billion, with a total backlog including the soft backlog reaching EUR 40.1 billion.
- Order intake more than doubled compared to the first nine months of 2023, reaching EUR 8.5 billion, showcasing strong commercial performance.
- Fincantieri SpA (FNCNF) has a strong market position in the cruise sector, with a market share of over 40% and a significant pipeline of new orders.
- The net financial position remains negative at EUR 2.44 billion, despite improvements compared to the same period in 2023.
- Shipbuilding revenues were marginally down, although this is consistent with the production and delivery schedule.
- The leverage ratio is expected to be between 4.5 and 5 times, indicating a high level of debt relative to EBITDA.
- The company is still affected by the residual strategy to support ship owners during the COVID-19 pandemic, impacting net debt.
- There are constraints in shipbuilding capacity, which could limit the ability to capitalize on market opportunities.
A: Pierroberto Folgiero, CEO, explained that geopolitical tensions are increasing demand for naval capacity and defense spending. The geopolitical landscape is driving countries to strengthen their defense capabilities, and Fincantieri is well-positioned with proven products and solutions to support these needs.
Q: What are the prospects for consolidation in the European defense sector, particularly regarding ThyssenKrupp Marine Systems?
A: Pierroberto Folgiero, CEO, emphasized the need for defragmentation in Europe to improve defense spending efficiency. Fincantieri is open to collaborations with ThyssenKrupp Marine Systems and is ready to evaluate opportunities that align with German and European interests.
Q: Can you provide an update on the Indonesian contract for the two PPAs?
A: Pierroberto Folgiero, CEO, confirmed that the contract is signed, and most conditions for effectiveness are fulfilled. The company is confident that the revenues and financial impacts will be realized as planned.
Q: What are the most promising export market opportunities in the naval segment, and what is the current backlog for naval contracts?
A: Pierroberto Folgiero, CEO, highlighted Southeast Asia and the Middle East as key markets, with significant opportunities in countries like Indonesia, Malaysia, and Saudi Arabia. The naval segment accounts for approximately EUR 4 billion in the soft backlog.
Q: Can you confirm if the cruise business will become self-financing starting next year, and what is the expected working capital absorption?
A: Giuseppe Dado, CFO, confirmed that the cruise business has reached a steady state in terms of revenues and working capital. The company expects to reduce working capital requirements from the cruise segment in 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.