By Giulia Segreti
ROME (Reuters) – Italy’s Leonardo reported 2024 results on Thursday above or in line with the guidance it had set for the year as the state-controlled defence group presses on with its efforts to lead European consolidation in the sector.
Leonardo’s orders, revenues, and cash flow were all above the guidance set, with its defence and security businesses offsetting the negative impact of its aerostructures and space units. Core earnings, or EBITA, were in line with its forecast.
The group, whose shares have risen over 380% since Russia invaded Ukraine in February 2022, has taken on a proactive role in attempts to increase Europe’s weight in the defence business.
Chief Executive Roberto Cingolani is pushing for broader alliances and cooperation among defence manufacturers to face larger players in China and the U.S., at a time when investors are upbeat about defence spending outlook in NATO countries.
Leonardo’s results all beat a company-provided analyst consensus.
“The preliminary results demonstrate the economic, financial, and industrial strength of Leonardo, with a medium-term development outlook aligned with the objectives outlined in the industrial plan,” Cingolani said in a statement.
“All of this enables Leonardo to increasingly play a leading role in the global aerospace, defence, and security industry… to catalyze new alliances and establish a presence in strategically significant global programs,” he said.
Orders were up 12.2% to 20.9 billion euros ($21.87 billion), driven by the company’s electronics and helicopter sectors, with a backlog ensuring output for 2.5 years.
Cingolani said the increase in free operating cash flow had allowed the defence conglomerate to reduce debt – now down to just under 1.8 billion euros.
He said the company would pay a dividend twice as large as the previous year.
($1 = 0.9557 euros)
(Reporting by Giulia Segreti, editing by Gavin Jones)
