Enhancement of the skills with which the company has distinguished itself for some time and therefore refocusing on its core business represented by shipbuilding, above all to consolidate the know-how linked to the digital and zero-emission ship. This is what emerged from Cda di Fincantieripresided over by the General Claudio Graziano, which reviewed and approved the Industrial Plan 2023-2027, the first signed by the CEO Pier Roberto Folgiero who took over the reins of the group last May.
The stock in Piazza Affari, which in the last 5 days has lost more than 4%, fell by 0,52% at 0,38 euro in the late morning.
Fincantieri: the targets of the plan, return to profit starting from 2025
Fincantieri count on coming back to review thestarting net profit twigs 2025the company statement said without providing further details. As for the other indicators: i revenues will reach 8,8 billion in 2025 and 9,8 billion in 2027, the EBITDA margin to 7% in 2025 and 8% in 2027, and finally the relationship between Pfn and Ebitda which we expect to bring between 4,5 and 5,5x in 2025 and further lower it at the end of the plan, reaching the bar of 2,5-3,5x.
The development of cruise ships, deliveries expected until 2028
In the sector ofand cruise ships, Fincantieri is leader with over 40% of the market share and 120 cruise ships built since 1990, or more than a third of the fleet in operation today. The Group has 28 vessels in portfolio (as at 30 September 2022) with deliveries expected until 2028 and boasts among its customers the main world players in cruise tourism.
The next industrial cycle of this sector will be characterized by two dynamics, says the company: the recovery of tourism, after the period characterized by the pandemic emergency, with a clear preference for cruises, at levels above 2019, and the entry of new operators in the ultra-luxury ship sector, with an increase in the demand for ships equipped with cutting-edge technologies and powered by new generation engines.
The Defense sector: an increase in spending on naval assets is expected
Always present in defense sector, since 1990 the Group has delivered over 130 naval units of which about 50 to Italy, the same number to the United States and over 30 units to navies of other foreign countries. Fincantieri is also a strategic partner of Italian Navy, among the most modern in the world. It is the market leader for high-tech surface vessels and is consolidating its production capacity submarines new generation and continues to demonstrate over the years its strength in responding to the needs of national and international customers.
La shipping costs it is expected to grow in line with global defense spending, driven by investment from Western European and Asia-Pacific nations. Strengthened by its capacity as a platform integrator and the programs in progress, the Group intends to enhance its commercial effectiveness towards leading navies in the development of new projects in accessible foreign markets, such asAsian area and the Middle East.
The Italian and foreign shipyards will be further strengthened, which will see a change of pace guaranteed by a strong push towards the digitization and reorganization of production processes in order to increase productivity. And again, maximum attention to cost management and financial discipline to allow the group to recover margins and return to solid profits.
Fincantieri, vessels to support offshore wind power: significant increase in demand
Fincantieri it's a Prime move in the field naval units to support the development of offshore wind power, with ten construction service operations vessel (Csov) – service operation vessel (Sov) units in the portfolio and two cable layers. Furthermore, the development of cutting-edge offshore units with remote control and green propulsion continues, destined to revolutionize operations at sea. Among these, Fincantieri has 14 robotic ships, equipped with engines also designed for the use of green ammonia as fuel.
“The drive towards decarbonisation and investment in renewable energy will result in a significant increase in demand of specialized vessels, particularly in the offshore wind sector” says the note. “Thanks to its know-how and leadership in the construction of Sovs, Fincantieri therefore aims to seize the opportunities deriving from the growth in installed capacity worldwide expected in 2030 and the additional requirement of over 150 units for the installation and maintenance of the fields wind turbines".
Fincantieri plan: analysts' assessments
“The goal of Pfn/Ebitda – write the analysts of Banca Akros – is disappointing compared to consensus expectations and it appears that the company's de-leverage may take longer than expected; a high level of debt in an environment of rising interest rates represents a heavy burden for the company”.
For Intermonte, on the other hand, the approval of the plan "arrives with an unexpected timing", however 'the progression in the improvement of margins in the period 2025-27 seems to be consistent with what are the expectations for 2024. Instead, we believe lower than expectations - they underline - the projections on net income and debt and leverage, which therefore imply a still weak cash generation in the period 2023-24 and potentially the presence of further extraordinary expenses that impact on the bottom line”.
Also Equity speaks of “short-term targets weaker than expected. We note that cash generation is weak through 2025 with targets implying a net debt of around €3 billion broadly in line with our estimate of €2,9 billion at the end of 2022. The company's deleverage is only expected from 2026 on".
