Fincantieri 1H 2025 slides reveal record €14.7B order intake, 45% EBITDA growth

Fincantieri SpA reported robust first-half 2025 financial results, with revenues increasing 24.3% to €4.6 billion and EBITDA rising 45.3% to €311 million, marking a return to net profitability at €35 million. The Italian shipbuilder also significantly reduced net debt to €1.64 billion and secured an exceptional €14.7 billion in new orders, nearly doubling its H1 2024 intake, which propelled its total backlog to a record €57.7 billion, providing revenue visibility through 2036. This strong performance, driven by demand in the cruise and defense sectors, led to a 1.73% stock increase and an improved net debt to EBITDA guidance, positioning the company for sustained growth.

Analysis

Fincantieri SpA demonstrated a significant operational and financial turnaround in its first-half 2025 results, posting a net profit of €35 million, a stark reversal from the €27 million loss in the same period of 2024. This was driven by robust, broad-based growth, with revenues increasing 24.3% year-over-year to €4.6 billion and EBITDA surging 45.3% to €311 million. The performance reflects improved efficiency, as evidenced by a 100-basis-point expansion in the EBITDA margin to 6.8%. The most compelling aspect of the report is the exceptional order intake of €14.7 billion, nearly doubling the prior year's figure and yielding a strong book-to-bill ratio of 3.2x. This has propelled the total backlog to a record €57.7 billion, equivalent to 7.1 times FY 2024 revenues and securing revenue visibility through 2036. While the cruise segment accounted for 96% of new orders, the underwater segment showed remarkable profitability, doubling its EBITDA to €47 million with a high 17.0% margin. The company's successful deleveraging, which reduced the net debt to EBITDA ratio to 2.7x, prompted an improved full-year guidance on this metric, adding to the overall positive outlook.

Key Decisions for Investors

• The record €57.7 billion backlog provides exceptional long-term revenue visibility, suggesting the current positive earnings momentum is sustainable and supporting a bullish view on the company's fundamentals.
• Investors should monitor the company's ability to deliver on its affirmed full-year EBITDA margin target of above 7%, as continued margin expansion combined with successful deleveraging will be critical for a further rerating of the stock.
• While the cruise segment drives the order book, the high-margin, high-growth performance of the underwater segment represents a significant emerging value driver that merits close attention.
• Given the strong results and improved guidance, any share price consolidation below the 52-week high could present a strategic entry point for investors looking to gain exposure to the positive outlook.