Rome 29 July 2021 17:59
Military/Governmental business remains strong and robust; some signs of recovery in civil aeronautics but cautious about timing
Solid first half results, back on growth path
- Defence Electronics, Helicopters and Aircraft all performing strongly
- Backlog of € 35.9 billion, book to bill >1
- Order intake of € 6.7 billion, up 9.5% YoY
- Revenues of € 6.3 billion, up 7.9% YoY
- EBITA of € 400 million, up 37% YoY
- FOCF, significantly improved (+26.9% YoY) at € -1.4 billion, reflecting usual seasonality
- Strong financial position
- No refinancing needs until 2022
FY 2021 Guidance confirmed
Strong fundamentals give us confidence in the short, medium and long term outlook
- Competencies, advanced technologies and innovation capabilities as a base for new growth opportunities post COVID
The BoD has approved the start of the merger by incorporation of Vitrociset
Leonardo's Board of Directors, convened today under the Chairmanship of Luciano Carta, examined and unanimously approved the results of the first half 2021.
Alessandro Profumo, Leonardo CEO, stated “First half 2021 results are solid, and we are back on a sustainable growth path. Our commercial activity has been intensive and we are continuing to achieve strong order intake, despite the pandemic; our strong backlog has supported good top line growth (revenues and new orders), our industrial performance and FOCF materially improved. Our Military/Governmental business remains very strong and robust. We are seeing some more positive signs in civil aeronautics, although remaining cautious about the timing of its recovery.”
“We are on track to achieve our full year 2021 Guidance – concludes Alessandro Profumo -. Our strong fundamentals give us confidence in our ability to create value sustainably for all our stakeholders in the medium-long term. We intend to leverage competencies, advanced technologies and innovation capabilities as a base for new growth opportunities post COVID.”
The results recorded in the first half of 2021 confirm the expectations of recovery in growth and an increase in profitability as reported in the Financial Statements at 31 December 2020, showing a marked improvement in the Group's industrial performance; in the first half of 2020, this indicator had been in fact particularly affected by the initial effects of the COVID-19 pandemic outbreak, which then gradually stabilised over the subsequent months, including as a result of the measures put in place in order to ensure the business continuity. The volume of new orders is at excellent levels, confirming the good competitive positioning of the Group's products and solutions, with revenues growing in all the main business areas and a Book to Bill higher than 1.
The challenges that have been reported in the civil sector in recent months have been confirmed in a scenario that is still characterised by the pandemic: in particular, Aerostructures was affected by the fall in volumes and the consequent failure of the industrial assets to operate at full capacity, which led to a further decline in results compared to the first half of 2020.
The cash flows are clearly improving, although affected by the usual seasonal trend characterised by significant outflows in the first part of the year.
Key Performance Indicators
(*) EBITDA this is EBITA before amortisation, depreciation (net of those relating to goodwill or classified among “non-recurring costs”) and adjustments impairment.
(**) EBITA is obtained by eliminating from EBIT the following items: any impairment in goodwill; amortisation and impairment, if any, of the portion of the purchase price allocated to intangible assets as part of business combinations, restructuring costs that are a part of defined and significant plans; other exceptional costs or income, i.e. connected to particularly significant events that are not related to the ordinary performance of the business.
(***) EBIT is obtained by adding to earnings before financial income and expense and taxes and taxes the Group’s share of profit in the results of its strategic Joint Ventures (GIE-ATR, MBDA, Thales Alenia Space and Telespazio).