Leonardo's CEO, Alessandro Profumo, plays his best card ahead of the game of government appointments about to open: that of a record budget which leaves no doubt about the solidity of the defense company. For Leonardo, 2022 was a year to remember, closed with sales above expectations and growing profitability.
" positive performance achieved by Leonardo in 2022 - underlines Profumo - is the result of a long-term vision that has allowed the company to strengthen its competitiveness in an international scenario of great uncertainty. Industrial evolution, financial solidity, commercial growth on the markets, sustainability are at the origin of these results”.
Leonardo's 2022 accounts
Leonardo filed 2022 with orders equal to 17,3 billion (21%) e revenues equal to 14,713 billion euros, up by 4,1% compared to 2021. The driving force behind the turnover was above all the performance of Helicopters and Defense Electronics, both in the European and in the US components. Management expected revenues to be between €14,4 billion and €15 billion.
Il Operating income rose from 911 million to 961 million euros (+5,5%), while it is up by 13,9% the ebitda, amounting to 1,218 billion; there marginality recorded an increase to 6,5%.
Boom ofNet income, which rose from 587 to 932 million euros (+58,5%). The result "reflects the capital gain realized with reference to the disposals of the Global Enterprise Solutions and Advanced Acoustic Concepts businesses of Leonardo DRS", specifies the company in a note. L'earning per share was 1,611 euros.
Going forward with the parameters, the Free Operating Cash Flow (FOCF) was positive for 539 million euros, an increase of 157,9% compared to 2021. L'Net borrowing instead, the Group amounted to 3,016 billion, a clear improvement compared to 3,122 billion as at 31 December 2021.
“We have once again achieved or exceeded the objectives set, we have structurally and decisively increased cash flow generation, with a FOCF of 539 million euros, more than double compared to last year – commented the CEO Alessandro Profumo – Thank you to the significant cash generation and disposals of the Leonardo DRS businesses we reduced debt and at the same time strengthened the core business through the purchase of 25,1% of Hensoldt and the consolidation of RADA into Leonardo DRS. These results allow us to propose to the shareholders the payment of a dividend of €0,14 per share also for this exercise.” The coupon will be detached on Monday 22 May 2023 and paid on 24 May.
Leonardo: guidance for 2023
For the current year Leonardo expects revenues between 15 and 15,6 billion euros, thanks to the contribution of new orders and the development of portfolio assets on programs in the defense and government fields. L'ebitda it should rise to between €1,26 and €1,31 billion, while net debt should fall to €2,6 billion thanks to cash flow generation and net of the expected payment of dividends of €0,14 per share and new leasing contracts for approximately 100 million. Leonardo estimates finally new orders totaling approximately 17 billion euro.
As for the medium/long-term goals, cumulative orders 2022-2026 are expected at around 90 billion (from 80 billion in the previous plan), average annual revenue growth in the mid-single-digit range confirmed (4-5%), cumulative revenues 2023-2027 at around 85 billion (from 78 billion previous plan); confirmed the average annual growth of Ebitda in the high single-digit range and RoS in double-digit growth at the end of the Plan; focus on debt reduction.
