• Record backlog € 40 billion; book to bill of ca. 1.3x
  • Revenues +4.8%1 at € 10.26 billion (vs € 9.8 billion 9m 2022)
  • EBITA € 644 million (+6.3%1 vs € 606 million 9m 2022)
  • FOCF improved significantly at € - 604 million (+33.2%1 vs € - 904 million 9m 2022)
  • Group net debt of € 3.8 billion in reduction of € 546 million against € 4.4 billion 9m 2022 driven by improving FOCF
  • Rated investment grade by all 3 rating agencies. Strong commitment to maintain solid financial profile
  • FY 2023 guidance confirmed
  • Recovery of the aerostructures in line with expectations. On track to breakeven in 2025

Dubai– Leonardo's Board of Directors, convened under the Chairmanship of Stefano Pontecorvo, examined and unanimously approved the results for the first nine months of 2023.

“The nine months 2023 performance confirms the strength of our business in line with our expectations. – Roberto Cingolani, Leonardo CEO and GM, stated – We improved our backlog and confirmed our competitiveness in all business areas. Aerostructures is confirming its recovery path in line with expectations”.

“All the economic and financial indicators – added Roberto Cingolani – are performing well, with a good increase in profitability. The expected reduction in intra-year cash absorption had also a positive effect on Group Net Debt reduction”.

“We are implementing the digitisation of processes and products – ended Roberto Cingolani – to further strengthen the competitiveness of our offer, integrating to the core our newer growth areas in Cyber and Space. We are working on the new Industrial Plan with the aim to present it with the FY 2023 results”.

9M 2023 economic-financial results

The strong performance already reported by the Group in 2022 continued into the first nine months of 2023. Such performance is far more significant if we compare the adjusted figures, which were restated to make the results of comparison homogeneous and more representative, taking into account the changes in the Group’s scope of consolidation.

New orders recorded a substantial increase of 13.3% which went up to 14.8% compared with the adjusted figure in September 2022, especially driven by the European component of the Defence Electronics and Security business, thus confirming the strengthening of the Group market positioning in this sector. The commercial growth is even more pronounced considering that new orders in the comparative period reflected the order from the Ministry of Poland related to the AW149 helicopters. Revenues were up by 3.5% (4.8% against the Adjusted figure), driven by significant recovery in Aerostructures (+32% against the first nine months of 2022) and the performance of the Defence Electronics and Security. The growth of Revenues was accompanied by a growth of EBITA of 4.0%, which appears more evident in the Adjusted figure or 6.3% on an adjusted basis, with sound profitability across all business segments.

Free Operating Cash Flow for the period improved by a significant 32% (33% against the adjusted figure), with a consequent positive impact on the Group Net Debt, which decreased by about 13% compared with the comparative period.

Key Performance Indicator with perimeter adjusted

For a better comparability of the Group's operating performance for the period, we report below some Adjusted performance indicators for the comparative period, excluding the main deconsolidation transactions from the Group’s scope of consolidation (GES business which was sold in July 2022). When compared with Adjusted data, the signs of growth in the Group’s New Orders, Revenues, Operating Profit and Free Operating Cash Flow previously reported are further strengthened:

Group (Euro million)

9M 2022 Reported

9M 2022 Adjusted

9M 2023

Chg. %

Orders

11,719

11,560

13,275

14.8%

Revenues

9,917

9,802

10,269

4.8%

EBITA

619

606

644

6.3%

ROS

6.2%

6.2%

6.3%

0.1 p.p.

FOCF

(894)

(904)

(604)

33.2%

2023 Guidance

In view of the results achieved in the first nine months of 2023 and the expectations for the coming periods, we confirm the guidance for the entire year as drawn up when preparing the annual financial statements as at 31 December 2022.

  

FY2022A

FY2023 Guidance[2]

New Orders

(€ bn)

17.3

Ca. 17

Revenues

(€ bn)

14.7

15 - 15.6

EBITA

(€ mln)

1,218

1,260-1,310

FOCF

(€ mln)

539

ca. 600

Group Net Debt

(€ bn)

3.0

ca. 2.6[3]

2023 exchange rate assumptions: € / USD = 1.10 and € / GBP = 0.87

Leonardo is a leading global Aerospace, Defence and Security (AD&S) company. With 51,000 employees worldwide, it operates in the fields of Helicopters, Electronics, Aircraft, Cyber & Security and Space, and is a key partner in major international programmes including Eurofighter, NH-90, FREMM, GCAP and Eurodrone. Leonardo has significant industrial capabilities in Italy, the UK, Poland, the US and Israel and also operates through subsidiaries, joint ventures and stakes, including Leonardo DRS (80.9%), MBDA (25%), ATR (50%), Hensoldt (25.1%), Telespazio (67%), Thales Alenia Space (33%) and Avio (29.6%). Listed on the Milan Stock Exchange (LDO), Leonardo reported new orders of €17.3 billion in 2022, with an order backlog of €37.5 billion and consolidated revenues of €14.7 billion. The company is included in the MIB ESG index and has been part of the Dow Jones Sustainability Indices (DJSI) since 2010.

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[1] Adjusted perimeter to exclude the contribution of Global Enterprise Solutions, sold in July 2022.
[2] Based on the current assessment of the effects deriving from the geopolitical situation on the supply chain and the global economy and assuming no additional major deterioration.
[3] Assuming dividend payment of € 0.14 per share and new leases for ca 100 mln.