LEONARDO, 1H RESULTS: NEW ORDERS OF € 7.3 BN (+9.4%), REVENUES OF € 6.6 BN (+3.6%), EBITA OF € 418 MLN (+11.8% VS 1H2021 RESTATED), NET RESULT OF 267 (+50.8%)

Rome,  28 July 2022 18:01

Strong Group commercial momentum, with no jumbo orders

  • Book to Bill > 1
  • Backlog at € 36.4 billion, ensures a coverage slightly higher than 2.5 years


Strengthening of cash performance

  • FOCF - € 962 million (- € 1,380 million 1H 2021) an improvement (+30.3%) of more than € 400 million compared to 1H 2021




Leonardo's Board of Directors, convened today under the Chairmanship of Luciano Carta, examined and unanimously approved results of the first half 2022.

Alessandro Profumo, Leonardo CEO, stated “Our good first half results allow us to confirm our full year 2022 Guidance. We have delivered a stronger performance in all metrics, including EBITA and FOCF, and achieved a strong performance and continued growth in new order intake, in all sectors, both domestically and internationally, carrying this commercial momentum into the second half. We are also pleased to see this positive performance being reflected by the revision of our outlook to a positive by S&P and Moody's”.

"In addition to the positive business and financial performance - Alessandro Profumo concludes - during the first half we finalized important long-term strategic transactions that allow Leonardo to play a role as a global player in Aerospace and Defence. In Europe we completed the acquisition of the stake in Hensoldt, while in the US we first focused the Leonardo DRS portfolio with the disposals of GES and AAC, and then reinforced its core strategic business through RADA, providing further growth, margins expansion and opportunities in the wider Group. With this transaction we have also seized the opportunity of listing DRS in the current context of volatile markets, thus delivering on what we promised last year. Finally, few weeks ago, we organized our first ESG Investor Day demonstrating that ESG is at the core of our Plan to create long term sustainable growth and value for all our stakeholders”.


1H 2022 financial results

The results of the first six months of 2022 confirm the well-established path to growth and increased profitability expected starting from 2020, even more pronounced considering that EBITA for the first half of 2021 - unlike the half-year period under comparison - includes as recurring costs the charges related to the COVID emergency.

The restated figures for the comparative periods have been provided in order to make the two periods comparable.

The volume of new orders continued to increase significantly, while Revenues and EBITA showed increases in all the main Business areas.

Cash flows, although affected by the usual interim performance characterised by significant outflows in the first part of the year, are also clearly improving compared to the same period of the prior year.

Furthermore, the Group Net Debt figure reflects the acquisition of the 25.1% investment in the German company Hensoldt (€mil. 606, plus related transaction costs) occurred at the beginning of January 2022.


Key Performance Indicator

(*) EBITDA is given by EBITA, as defined below, before amortisation and depreciation (excluding amortisation of intangible assets arising from business combinations) and impairment losses (net of those relating to goodwill or classified among “non-recurring costs”).

(**) 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 Income before tax and financial expenses (defined as earnings before “financial income and expense”, “share of profits (losses) of equity- accounted investees”, “income taxes” and “Profit (loss) from discontinued operations”) the Group’s share of profit in the results of its strategic investments (MBDA, GIE ATR, TAS, Telespazio and Hensoldt), reported in the “share of profits (losses) of equity-accounted investees”. Until 31 December 2021 this indicator included solely the part of the results of the strategic joint ventures (MBDA, GIE ATR, TAS and Telespazio) pertaining to the Group.

(1) EBITA and ROS have been restated to include charges related to the COVID emergency, which until the 2021 financial statements were excluded from these indicators as they were classified as 'non-recurring charges'”

Commercial Performance 

  • New Orders, amounted to EUR 7,310 million showing significant growth (+9.4%) compared to the first half of 2021. An excellent commercial performance was recorded in all core business sectors, and especially in the Aircraft Division, which benefitted from major orders under the Typhoon program
  • Backlog, amounted to EUR 36,358 million, ensures a coverage in terms of production equal to about 2.5 years. The book to bill ratio (the ratio of New Orders for the period to Revenues) is higher than 1


Business Performance

  • Revenues, amounted to EUR 6,576 million, showed a positive trend (+4%) compared to the first half of 2021 (€bil. 6.3), mainly due to the performance of Helicopters
  • EBITA, amounted to EUR 418 million, essentially recorded the same growth as noted in Revenues (+5%), with the GIE ATR zeroing out the negative performance reported in the previous six-month period. The figure for the current period also includes costs associated with the COVID-19 emergency, which vice versa had been classified as non-recurring charges in the first half of 2021. The growth in the first half of 2022 in relation to the Restated figure for the first half of 2021 to take account of these charges (€mil.374, with a Restated ROS of 5.9%) shows an improvement of 12%, equal to 0.5 p.p. of ROS
  • EBIT, amounted to EUR 362 million, substantially benefitted from an improvement of EBITA, compared to the first half of 2021 (€mil. 347). Non-recurring costs for the period showed the write-down of the exposure to the countries involved in the conflict existing between Russia and Ukraine for an amount of about €mil. 33. On the contrary, the figure for the first half of 2021 had included, as noted, the charges linked to the COVID-19 emergency
  • Net Result before extraordinary transactions, amounted to EUR 267 million, (€mil. 177 in the first half of 2021), is equal to the Net Result and benefitted from the EBIT performance, as well as from lower financial and tax charges.


Financial performance

  • Free Operating Cash Flow (FOCF), negative for EUR 962 million, improving significantly compared to the figure at 30 June 2021 (negative for €mil. 1,380). This result, although confirming the usual interim trend that is characterised by significant cash absorptions in the first part of the year, reflects the expected positive trend towards improvement
  • Group Net Debt, of EUR 4,793 million, showed an increase compared to 31 December 2021 (€mil. 3,122) mainly as a result of the abovementioned FOCF performance as well as of the acquisition, completed in January 2022, of the investment in Hensoldt AG and the share of the related  transaction costs paid by a total amount of €mil. 617