Fincantieri, the Italian shipbuilding giant, has unveiled an ambitious five-year industrial plan targeting significant revenue and profit growth through . The – plan, presented to analysts and industry stakeholders, centers on capitalizing on increased global demand, particularly in the defense sector and streamlining operational efficiency.
The company projects revenues will climb to approximately €12.5 billion by , representing an 8% average annual increase from the €8.1 billion recorded in . This growth is expected to be accompanied by a substantial boost in profitability, with EBITDA forecast to reach €1.25 billion in , a 90% increase compared to levels, and an EBITDA margin of 10%. Net profit is projected to surge to €500 million by , a dramatic increase from approximately €30 million in , with guidance pointing to €110 million in net profit for the current year.
Fincantieri anticipates securing approximately €50 billion in new orders over the plan’s duration, with €5 billion expected within the next six months. The defense sector is poised to be a key driver of this growth, reflecting a broader trend of increased global military spending. The company currently holds an order backlog of €60 billion.
The industrial plan is built around four strategic pillars: increasing production capacity, enhancing productivity, strengthening strategic projects, and pursuing growth in adjacent markets. These initiatives aim to bolster Fincantieri’s global footprint, improve manufacturing efficiency, and expand its portfolio of high-technology solutions through targeted investments and a restructuring of its shipyard system to maximize capacity and profitability.
The company’s strategy reflects a broader shift in the geopolitical landscape, where defense is once again a dominant force. Fincantieri is positioning itself to benefit from this trend, leveraging public spending on defense alongside private investment in areas like cruise ships and energy infrastructure. This dual focus aims to create jobs and develop skilled labor within Italy.
Fincantieri’s recent acquisitions, including the purchase of torpedo maker WASS from Leonardo, demonstrate a commitment to strengthening its underwater systems business. A €200 million deal with Saudi Arabia for WASS’s MU90 Lightweight Torpedo highlights the growing demand for these technologies. The company is also actively pursuing new contracts, including the supply of ships and submarines to the Italian navy, and fulfilling orders from international customers such as Indonesia (PPA vessels) and Egypt (Fremm frigates).
The plan also emphasizes financial discipline, with a target to reduce the net financial position to EBITDA ratio to 1.0x by . This indicates an expectation of strong cash generation, enabling the company to repay debt and fund future investments. The company expects revenue to double by , reaching €18 billion.
Fincantieri’s ability to navigate recent challenges, including a setback in its U.S. Warship business, is also factored into the plan. While the cancellation of the Constellation frigate program represents a loss, the company anticipates receiving approximately $3 billion in compensation from the U.S. Government, including payments for work already completed. This financial cushion will help mitigate the impact of the program’s termination.
The company is also benefiting from increased defense spending commitments from European governments, including Italy’s pledge to increase its defense budget to 5% of GDP, supported by €14.9 billion in EU loans. This influx of funding is expected to drive further demand for Fincantieri’s naval shipbuilding capabilities.
The – business plan signals a strategic focus on the defense sector, while maintaining a diversified portfolio that includes commercial shipbuilding and energy-related projects. The company’s management will provide further details on its strategy at a Capital Markets Day to be held in Milan in the first quarter of .
