Fincantieri confirms the plan targets for 2027, useful from 2025

Fincantieri increases revenues in the first quarter of 2023, to 1,764 million euros, +4.9% over the same period of 2022. “We are in line with the forecasts for 2023”, says CEO Pierroberto Folgiero. Which looks ahead, illustrating the details of the financial plan to 2027, which provides for the return to net profit in 2025.

Quarterly accounts

“In the cruise ship area we recorded an increase in production volumes by virtue of the development of the important backlog acquired while in the military area the progress of existing programs continues as planned in compliance with the scheduled timescales”, continues the manager.

The offshore sector and special vessels did well, with revenues of 238 million euros equal to an increase of 31%, which benefits from the growing contribution of units for the wind sector. “This result confirms the validity of the revision of the business model of Vard, now focused on the offshore and renewable energy market. In the first months of 2023 we launched a series of priority initiatives to ensure the objectives of the 2023-27 Business Plan, including the continuation of actions aimed at digitizing and increasing the production efficiency of construction sites and optimizing procurement costs and general expenses, in addition to those for securing and enhancing the area of ​​activity of the infrastructures”.

“The operating performance expected for the year – adds the CEO of Fincantieri – will allow us to consolidate revenues and margins which, combined with a very robust order book and an EBITDA that is improving compared to the results of FY 2022”.

The 2023/27 industrial plan

Folgiero then illustrated in detail the 2023/27 business plan, which confirms the consolidated financial targets already published in mid-December when the plan was approved.

Revenues show growth from 7.6 billion in 2023 to 8 billion in 2024, 8.8 billion in 2025 and 9.8 billion in 2027. Profitability is growing with the Ebitda margin, which rises from 5% in 2023 to 6% in 2024, 7% in 2025 and 8% in 2027. The company expects net income starting in 2025.

In the group’s next strategy, the distinctive factors – said Folgiero – are the “consolidated transversal leadership in the cruise, defense and offshore sectors, the ability to respond to geopolitical dynamics with skills in regionalization deriving from the local presence with 18 shipyards on 4 continents, the vertical integration thanks to expertise in automation, electromechanics and propulsion and generation systems necessary to lead the digital and green transition”.

Market trends

Fincantieri expects a cruise market to recover after the Covid emergency, with cruise passengers expected to grow at an annual rate of 6% until 2030, which promises a recovery in orders for new ships from 2023-2024
An interesting horizon also for the military market. “In a changed global context, it requires the availability of larger fleets and higher technological standards, both for existing programs with the Italian Navy and the US Navy, and for other foreign programs for corvettes and frigates”.
Good news also from the Offshore market, driven by the wind sector with an expected growth of installed power from 59.2 GW to approx. 270 GW in 2030, the construction of new wind farms and the maintenance of operational ones will require new specialized CSOV, SOV and cable layer vehicles
And again, a strong push for ESG and decarbonisation where the International Maritime Organization and the main shipowners have begun to make ambitious commitments to Net Zero Emissions of cruise operations by 2050.