Leonardo (LDO) Q4 2024 earnings summary

Executive summary

• Double-digit growth in orders, revenues, and EBITDA/EBITA in 2024, with all key metrics exceeding guidance and significant net debt reduction.

• Strong performance in core defense and security businesses, with cost savings and efficiency initiatives offsetting external headwinds in Aerostructures and Space.

• Commercial momentum remained robust across all segments, supported by easing supply chain pressures.

• Sustainability KPIs improved, including emissions, water, waste, and gender equality.

• Dividend payments doubled in 2024.

Financial highlights

• Order intake reached €20.9 billion, up 12.2% year-over-year, with a book-to-bill ratio of 1.2x and backlog above €44 billion.

• Revenues rose 11.1% to €17.8 billion; EBITA increased 12.9% to €1,525 million; ROS at 8.6%.

• Free operating cash flow grew 26.7% to €826 million, exceeding guidance.

• Net debt reduced by 22.7% to €1.8 billion, supported by strong cash generation and delayed acquisitions.

• Efficiency initiatives delivered €191 million in savings, ahead of the €150 million target.

Outlook and guidance

• 2024 results exceeded guidance for orders, revenues, EBITA, and FOCF; 2025 guidance and updated Industrial Plan to be presented March 11, 2024.

• Performance expected to remain strong, with revenues stable or slightly higher and solid EBITDA/EBITA in core businesses.

• Free operating cash flow generation expected to continue in line with the plan.