2018 results above the Guidance for New Orders (€15.3 bn, +32%* YoY) and Revenues (€ 12.4 bn, +5%* YoY)

Net Result growing over 80% at € 510 mln. Sustainable growth path continues

Rome  13 March 2019 17:44 Inside Information

2018 results above Guidance for New Orders and Revenues 

  • New order intake at € 15.3 billon, up 32%(*)
  • Record Backlog at € 36.1 billion
  • Revenues at € 12.4 billion, up 5%(*) 
  • Book to bill above 1 
  • EBITA at € 1.13 billion, up 5.2%(*) 
  • Profitability (RoS) at 9.2% 
  • Net Result at € 510 million, up 83%
  • FOCF at € 336 million at the top-end of Guidance range, as revised upwards in July


Proposed dividend distribution of € 0.14, in line with 2017

Guidance 2019: growth trends confirmed with further increase in Revenues (€ 12.5-13 bn), EBITA (€ 1,175-1,225 mln) and expected FOCF at ca. € 200 mln, confirming cash conversion rate of more than 50% over the Plan horizon

Profumo (CEO): “All actions needed in place and delivered on promises. We expect an acceleration to achieve sustainable growth.”

Leonardo's Board of Directors, convened today under the Chairmanship of Gianni De Gennaro, examined and unanimously approved the draft of Group consolidated and Leonardo S.p.A. financial statements at 31 December 2018.

Alessandro Profumo, Leonardo CEO commented “2018 has been a key step forward in the execution of the Industrial Plan: all actions needed are in place and we delivered on what we said we will do. We have met targets and exceeded Guidance. We continue to be confident in being able to achieve all Industrial Plan targets: top line growth with strict cost control, driving Group towards double-digit profitability and strong cash generation from 2020. Over the next years we want further accelerate the path we have taken to achieve sustainable growth”.

The 2018 results are consistent with the priority objective of growth set out in the Industrial Plan. Most notable is a significant increase in New Orders and Revenues, with a Backlog level of over € 36 bn, which will support further growth in the coming years.

 Volume growth was accompanied by solid operating profits, a significant increase in the Net Result and a cash generation which confirmed the Guidance revised upwards last July.

 2018 results highlights are as follows:

  • New Orders, amounted to EUR 15,124 million showed an increase of c.30% compared to 2017 (€ 11.595 million) mainly due to the acquisition of the NH90 order in Qatar worth € 3 bn.
  • Order Backlog, amounted to EUR 36,118 million, a record high and ensuring a coverage in terms of equivalent production equal to about three years
  • Revenues, amounted to EUR 12,240 million, an increase of 4.3% compared to 2017 (€ 11.734 million), which is even more significant excluding the adverse exchange rate effect, key drivers were of Electronics, Defence & Security Systems and Helicopters. 
  • EBITA, amounted to EUR 1,120 million with RoS of 9.2%, showed an increase compared to 2017 (€ 1,077 mln, RoS of 9.2%), mainly due to higher volumes and profits recorded in the Helicopters Division and to the good performance of the Aircraft Division - whose higher contribution more than offset a decline in the result posted by the GIE-ATR Consortium impacted by the mix of deliveries made and the USD/EUR exchange rate – and of the Electronics, Defence and Security Systems Division.
  • EBIT, amounted to EUR 715 million; the improvement in EBITA was absorbed by the considerable costs allocated in relation to restructuring costs relating to Law 92/2012 (“Fornero Act”, about € 170 mln), resulting in a reduction of € 129 mln in EBIT compared to the prior year.
  • Net Result before extraordinary transactions, amounted to EUR 421 million, benefitted to a significant extent from much lower financial costs linked to buy-back transactions completed in 2017, which were partially offset by restructuring costs arising from the start of the procedure under Law 92/2012 (Fornero Act - about € 170 mln).
  • Net Result, amounted to EUR 510 million, (€ 279 mln at 31 December 2017), benefitted from this improvement in financial costs, as well as from the release of part of the provision set aside against guarantees given upon the disposal of Ansaldo Energia.
  • Group Net Debt, amounted to EUR 2,351 million, a reduction of 8.8% compared to 31 December 2017 (€ 2.6 bn).
  • Free Operating Cash Flow (FOCF), amounted to EUR 336 million, (€ 537 mln at 31 December 2017), was affected by the cash profile of the EFA Kuwait contract in the two comparative periods, arising from the start of production operations as expected, and which was partially offset by the advance payments relating to the NH 90 Qatar contract. 


Leonardo's Board of Directors has resolved to propose to the Shareholders' Meeting the distribution of a dividend of €0.14 per share from the profit of the year 2018, gross of any withholding taxes.  This dividend would be payable as of May 22, 2019, with the ex-dividend date on May 20, 2019 and the record date (ie the date of entitlement to the dividend payment) on May 21, 2019. The above with reference to each share of common stock that will be outstanding on the ex-dividend date, excluding the own shares held on that date, without prejudice to the regime of those that will be effectively assigned, pursuant to the current incentive plans, during the current  year.

The full year 2018 was the first fundamental step in the path outlined last year for the Industrial Plan. The expected performance in 2019 shows a confirmed growth trend, with a further increase in Revenues and improved profitability accompanied by stronger cash flow operations in order to support growth and ensure the balance between investments and cash generation. 


Specifically, for 2019 Leonardo expects:

  • To confirm high levels of new Orders (€ 12.5 – 13.5 bn) thanks to the finalisation of major export orders underpinned by the full implementation of the new commercial strategy aimed at addressing the Group key markets in a more effective manner and enhancing the One Company potential;
  • Revenues in the range of € 12.5 – 13.0 bn, up from 2018 thanks to the contribution from the EFA Kuwait programme, the stable order backlog, which had grown further in 2018, and a good positioning of the Group’s products in the more attractive market segments;
  • Increased EBITA in the range of € 1,175 - 1,225 mln supported by growth in volumes, improvements in profitability in the various business areas and efficiency actions involving industrial processes and costs;
  • FOCF of around € 200 mln which reflects the significant cash absorption of the EFA Kuwait contract due to the production ramp-up ahead of deliveries scheduled from 2020;
  • Group Net Debt of around € 2.8 bn including the effect of IFRS 16 (about € 0.5 bn).

Below are estimates for the financial year 2019:

Please do NOT delete or modify
2018 financial statements figures
Outlook 2019 (*)
New Orders (€bn.)
12.5 - 13.5
Revenues (€bn.)
12.5 - 13.0
EBITA (€mln.)
1,175 - 1,225
FOCF (€mln.)
Ca 200
Group Net Debt (€bn.)
ca. 2.3 / 2.8 (**)
Please do NOT delete or modify

 (*) Assuming an exchange rate €/USD of 1.25 and €/GBP of 0.9.
(**) Including IFRS 16 effect