Leonardo's 2024 Financial Performance and Strategic Initiatives
Leonardo, the Italian aerospace and defence company, has reported robust financial results for 2024, showcasing significant growth across key business sectors. The company's performance underscores its strategic resilience and adaptability in a dynamic global market.
Record-Breaking Orders and Revenue
In 2024, Leonardo achieved a remarkable 16.8% increase in orders, amounting to €20.9 billion. This surge was primarily driven by heightened demand in the Electronics for Defence and Security sector, as well as the Helicopters division, catering to both governmental and commercial clients. Consequently, the company's revenue grew by 16.2% year-on-year, reaching €17.8 billion. This growth is attributed to improved execution of its order backlog and enhanced supply chain optimisation, particularly in the defence electronics and helicopter segments.
Enhanced Profitability and Financial Health
Operating profit (EBITA) rose to €1.525 billion, reflecting a 15.8% increase from the previous year. This robust performance is a result of higher activity volumes, cost-saving initiatives, and resilience in the Defence & Security sector, despite challenges in the Aerostructures and Space manufacturing units. The company's order backlog now stands at over €44 billion, securing production for approximately 2.5 years and underscoring successful commercial efforts and long-term contract acquisitions.
Positive free operating cash flow has enabled Leonardo to reduce its net debt to just under €1.8 billion. In light of this financial strength, the company has announced plans to double its dividend, reinforcing its commitment to delivering value to shareholders.
Strategic Vision and Sustainability Initiatives
CEO Roberto Cingolani highlighted Leonardo's growing role in the global aerospace, defence, and security industry. He emphasized the company's strategic positioning to forge broader alliances within the European defence sector, aiming to compete effectively with larger Chinese and U.S. players. Cingolani also noted the company's proactive approach in expanding the European defence sector, aligning with European Commission objectives.
Beyond financial metrics, Leonardo has made significant strides in sustainability. The company reported an 18.3% reduction in emissions intensity and increased investments in research and development to €2.49 billion, representing 14% of total revenues. These efforts underscore Leonardo's commitment to innovation, inclusivity, and environmental responsibility, enhancing its attractiveness to young talent and bolstering long-term competitiveness.
In summary, Leonardo's 2024 financial results reflect a period of substantial growth and strategic advancement. The company's focus on innovation, sustainability, and strategic alliances positions it well for continued success in the global aerospace and defence landscape.
