ROME (Reuters) – Italy’s state-controlled defence and aerospace group Leonardo on Friday reported a jump in new orders and falling debt in the first half of the year, as it confirmed its targets for 2023.
New orders rose to almost 8.7 billion euros ($9.60 billion), up 18.9% year-on-year, while group net debt fell to 3.6 billion euros from 4.8 billion euros in the first half of last year.
H1 revenues were up 4.8% to just under 6.9 billion euros, while earnings before interest, taxes depreciation and amortisation (EBITDA) rose by 3.5% to 703 million euros.
CEO Roberto Cingolani hailed a “clear improvement in orders, revenues, FOCF (free operating cash flow) and debt, and said the company would unveil a new industrial plan “at the beginning of next year.”
It will focus on Leonardo’s core defence business, but also aim to strengthen fast growing sectors such as space and cybersecurity, and boost digitalisation across the board, the CEO said.
Leonardo’s confirmed guidance for 2023 includes a forecast for new orders at around 17 billion euros, revenues in the 15-15.6 billion euro range, EBITA at 1.26-1.31 billion euros and group net debt of about 2.6 billion euros.
Like other defence companies, Leonardo has benefited from rising military spending by governments in the wake of last year’s Russian invasion of Ukraine.
The company is involved in the Global Combat Air Program (GCAP), a defence cooperation deal between Italy, Britain and Japan to build a next-generation fighter jet.
Leonardo’s Milan-listed shares have risen by more than 46% since January, and are up about 20% year-on-year. On Friday, before results were announced, they closed up 0.7% at 11.88 euros.
($1 = 0.9064 euros)
(Reporting by Alvise Armellini, editing by Gavin Jones)
