Fincantieri has reported a net profit of €27m ($29.23m) for the financial year 2024, marking a turnaround from a €53m net loss in the previous year.
The strong return to profitability comes a year ahead of the company’s Business Plan estimates.
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The company’s revenue saw an increase of 6.2%, climbing from €7.65bn in 2023 to €8.12bn in 2024, with growth in the ‘Offshore and Special Vessels’ and ‘Systems, Components and Infrastructure’ segments, which surged by 28% and 36% respectively.
Margins have shown a rise, with earnings before interest, taxes, depreciation, and amortisation, (EBITDA) reaching €509m, a 28% increase from €397m in 2023.
The EBITDA margin also improved, standing at 6.3% compared to 5.2% in the previous year.
Fincantieri reported a record level of new orders in 2024, valued at €15.35bn, more than doubling the order intake from 2023, driven by the shipbuilding segment.
The company’s backlog has grown, amounting to €30.97bn, a 34.3% increase from €23.07bn as of 31 December 2023.
Total backlog reached €51.17bn, bolstered by a strong commercial pipeline across all business segments.
In 2024, Fincantieri delivered 20 ships on schedule, supported by operational efficiency programmes and production innovations from the Business Plan.
Shipbuilding orders for 2024 tripled compared to 2023, totalling €13.19bn.
In the Defence sector, Fincantieri’s joint venture with Leonardo, Orizzonte Sistemi Navali (OSN), received a contract from the Italian Navy for the construction of a fourth new generation patrol vessel and related support under the Offshore Patrol Vessel programme, valued at €236m.
Additionally, OSN secured a €1.5bn contract with OCCAR for two new FREMM frigates in the “EVOLUTION” version for the Italian Navy.
Fincantieri CEO and general manager Pierroberto Folgiero said: “We look to the future with entrepreneurial courage, confident that this solidity will enable us to accelerate in addressing the international challenges of the naval industry, both civil and military, investing in the evolution of clean and digital ships, ensuring long-term competitiveness to our supply chain.
“With this trajectory, together with our people, we will continue to create value for our stakeholders and strengthen Fincantieri’s role as global point of reference in our traditional sector and in all its adjacent industries, such as underwater.”
The global defence budget in 2024 reached approximately $2.48trn, a 1.1% increase from 2023 when considering inflation, continuing an upward trend since 2014.
The company notes that the international geopolitical landscape is expected to create new opportunities in the naval sector, with programmes aimed at strengthening fleets and increasing defence and deterrence resources.
In January 2024, Fincantieri finalised the acquisition of the Underwater Armaments & Systems business line from Leonardo, with a maximum enterprise value of €415m.
