Leonardo flies on the back of positive accounts and confirmation of 2024 targets

(Il Sole 24 Ore Radiocor) - The Leonardo - Finmeccanica sprung to the top of the FTSE MIB. The defence stock immediately rose to the top of the FTSE MIB buoyed by quarterly accounts in line with targets announced in March and better than consensus expectations. In the first three months of the year, the Roberto Cingolani-led group posted new orders of EUR 5.8 billion, up 4.9% from the pro forma 2023 figure, and revenues at EUR 3.7 billion, up 15.3%. The aerospace group's EBIT rose 67% to EUR 182 million and net profit was positive at EUR 459 million. Management then confirmed the 2024 guidance: 19.5 billion euro new orders, 16.8 billion in revenues, ebitda at 1.44 billion, operating free cash flow of 770 million, and debt of 2 billion.

Intermonte analysts, acknowledgingstrong results in line with targets, do not expect 'changes in consensus estimates'. What is worrying are "problems in the aerostructure sector due to the B787", i.e. the aircraft produced by Boeing, of which the Italian group is one of the suppliers, which has suffered production slowdowns, problems that "must be monitored as they could affect performance in the short term", the analysts continue. According to Banca Akros, 'the market is aware of the Boeing 787 aspect - there is some uncertainty - and should not react too negatively to the news flow, also considering that the guidance for FY24 is not at risk'. Leonardo is also close to finalising, according to Il Sole 24 Ore, the deal with Fincantieri for the sale of ex-Wass assets, with an extraordinary board meeting scheduled for Thursday 9 May. During the call for the presentation of the accounts (on 7 May after the markets close), CEO Cingolani confirmed that the two companies are actively working on the deal these days.