Leonardo archive the first quarter with a net profit of 74 million euros, against the loss of two million recorded in the same quarter of 2021. I revenues, equal to 3,006 billion, are up 8% thanks to the performance of helicopters and by the higher production volumes of the aircraft division. Let the group know in a note.
On the profitability side, the Operating income Ebita grows to 132 million (+39%) with a significant increase in all business sectors. The free operating cash flow, a negative €1.080 million, recorded an improvement compared to -€1.422 million in the first quarter of 2021. Thenet borrowing it grows to 4.788 million from 3.122 million at the end of December. Leonardo in the note explains that the data on debt, while reflecting the purchase of the 25,1% stake in the German company Hensoldt (for €606 million), is only €148 million higher than in the first quarter of 2021 thanks to the marked improvement in cash flow.
Profumo: “2022 guidance confirmed”
According to Leonardo's CEO, Alessandro Profumo, “il defense/government business confirmation in period a good level of orders, with growing revenues and profitability and improving cash flow. We are well positioned in European cooperation programs and in those markets where an increase in defense spending is expected. these considerations confirm the prospects and guidance for 2022”, which forecasts revenues of 14,5-15 billion and increasing profitability with an Ebita of 1.180-1.220 million at the end of the year.
Leonrado: growing orders, helicopters are doing well among the sectors
Leonardo then reveals that the orders, equal to 3.789 million grow by 10,8% compared to the first quarter of 2021. The portfolio at 36.278 million ensures coverage in terms of production slightly over 2,5 years. The sector of helicopters shows a positive general performance and shows growing values, in line with the expectations of the plan.
In 'defense electronics the quarter is characterized by commercial performance in line with the comparison period, with volumes also substantially in line. Profitability is increasing in all the main business areas of the European component and in Leonardo DRS, which continues to confirm the growth trend envisaged in the plan.
Il aeronautical sector highlights an excellent performance of the defense business, also recording the first signs of recovery in the regional transport sector, with the GIE-ATR consortium increasing deliveries and orders.
For the aircraft, Leonardo indicates the delivery to Lockheed Martin of components for the F-35 fighter program (11 wings and 2 final assy), as well as the delivery of two Typhoons to Kuwait.
For the division space, the quarter records an improvement in the result which benefits from higher production volumes and the improvement in profitability in the manufacturing segment. In the segment of satellite services the solid profitability already recorded in the first quarter of 2021 is confirmed.
Profumo: “Leonardo on a new path of growth”
Leonard is from "new on a growth path”, Profumo added in the call with the analysts for the presentation of the first quarter numbers. “We got off to a good start, despite the fact that the first quarter is the one that normally offers the smallest contribution to the results of the year, we have achieved very good results”. In his comments Profumo underlines with satisfaction the revision of the outlook on the rating by S & P from stable to positive: “It is very important. We are in line and we reconfirm the guidance for the year”.
As to the impact of the conflict on the industry and the group,"it is too early to evaluate – Profumo continued – there may be opportunities, but the impact for us will presumably go beyond this year in the medium-long term. In 2023, clarity should be shed on the allocation of defense resources in the various countries".
Italy, recalls the top manager of the group, has declared its commitment to bring defense spending to 2% of GDP by 2028: "It is therefore important to understand the distribution of resources and then the programs in which they will be allocated" , even if "Italy is relatively small for us: in terms of turnover it is worth 17%".
