Rome 06 May 2021 17:59
Results in line with our plan
- Continued strength of military/governmental
- Strong backlog of € 36.4 billion
- Order intake of € 3.4 billion, less relying on large scale orders
- Book to bill at 1.2x
- EBITA of € 95 million, up 132%, with robust and higher profitability across the Group, besides aerostructures
- Cash flow, negative for € 1.4 billion, improving in line with plan and reflecting usual seasonality
Leonardo and HENSOLDT
- Strong industrial and strategic rationale
- Closer co-operation and complementary strengths
- Value creation through enhanced market access and key platform exposure
- Maintaining a solid capital structure also through disposals and DRS listing
FY 2021 Guidance confirmed
Confidence in medium/long term outlook
- Solid military/governmental
- Planned recovery actions in the civil side of the business
- Solid backlog and order intake
- Leveraging existing assets, technologies and transversal capabilities to catch new opportunities
Leonardo's Board of Directors, convened today under the Chairmanship of Luciano Carta, examined and unanimously approved results of the first quarter 2021.
The results for the first quarter of 2021 were in line with the expectation of a recovery in growth and an increase in profitability reported in the Integrated Report at 31 December 2020, showing a marked improvement in the Group's industrial performance; in the first quarter of 2020 this indicator was in fact particularly affected by the outbreak of the COVID-19 pandemic, which then gradually stabilised over the following months, also as a result of the measures put in place in order to ensure that the business could continue in full operation.
This trend shows the resilience of the military/governmental business, in a scenario that is still affected by the pandemic. Otherwise, the critical issues that have been reported in the civil aviation sector in recent months have been confirmed, in particular, Aerostructures experienced the challenges associated with a fall in volumes and the consequent failure to absorb fixed costs, which led to a decline in results compared to the first quarter of 2020.
Alessandro Profumo, Leonardo CEO, stated “First quarter 2021 results are in line with our expectations when we recently set out our guidance for the full year. We have continued to achieve good order intake and our strong backlog has supported growing revenues. Our profitability has remained robust and our cash flow is improving, in line with plan. Our solid military and governmental business offset the impact of the Covid pandemic on the civil side. The acquisition of the 25.1% stake in HENSOLDT represents a long-term operation strengthening our portfolio in the strategic defence electronics business in sensor solutions. The investment and partnership is very exciting, giving us the opportunity for value creation through enhanced global market access, and increasing our competitiveness on key platforms. Our solid capital structure will be maintained also through disposals and DRS listing. We remain fully focused to create value sustainably for all our stakeholders”.
Key Performance Indicators
(*) EBITDA this is EBITA before amortisation, depreciation (net of those relating to goodwill or classified among “non-recurring costs”) and adjustments impairment.
(**) EBITA is obtained by eliminating from EBIT the following items: any impairment in goodwill; amortisation and impairment, if any, of the portion of the purchase price allocated to intangible assets as part of business combinations, restructuring costs that are a part of defined and significant plans; other exceptional costs or income, i.e. connected to particularly significant events that are not related to the ordinary performance of the business.
(***) EBIT is obtained by adding to earnings before financial income and expense and taxes and taxes the Group’s share of profit in the results of its strategic Joint Ventures (GIE-ATR, MBDA, Thales Alenia Space and Telespazio).