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Introduction & Market Context
Italian shipbuilder Fincantieri SpA (BIT:FCT) presented its first-half 2025 financial results on July 30, showcasing robust performance across all business segments. The company’s stock closed at €16.23, up 1.73% on the day, continuing its strong performance after reaching a 52-week high of €17.70 earlier this year.
The results demonstrate Fincantieri’s continued momentum following a strong first quarter, when the company reported a 34.5% year-over-year revenue increase. The shipbuilder has successfully capitalized on growing demand in both the cruise and defense sectors, while making strategic advances in its underwater and digital initiatives.
Quarterly Performance Highlights
Fincantieri reported substantial growth in all key financial metrics for the first half of 2025, with revenues reaching €4.6 billion, a 24.3% increase compared to the same period in 2024. This growth was accompanied by an even stronger improvement in profitability, with EBITDA rising 45.3% year-over-year to €311 million.
As shown in the following chart of key financial highlights:
The company achieved a significant milestone by returning to profitability, posting a net result of €35 million, compared to a €27 million loss in the first half of 2024. This turnaround reflects both revenue growth and improved operational efficiency, with EBITDA margin expanding by 100 basis points to 6.8%.
Fincantieri’s deleveraging efforts have also yielded results, with net debt decreasing to €1.64 billion from €2.42 billion in the first half of 2024, bringing the net debt to EBITDA ratio down to 2.7x.
Detailed Financial Analysis
The company’s revenue growth was broad-based across all business segments, with shipbuilding leading the way at €3.4 billion, representing a 26.3% year-over-year increase and accounting for 68% of total revenues. The revenue breakdown by segment is illustrated below:
Profitability improvements were even more pronounced, with EBITDA increasing across all segments. Particularly notable was the underwater segment, which doubled its EBITDA to €47 million with an impressive 17.0% margin. The equipment, systems and infrastructure segment also performed strongly, with EBITDA up 42.1% to €46 million.
The following chart details the EBITDA contribution from each business segment:
The path from EBITDA to net result shows how the company achieved profitability despite significant depreciation and amortization expenses of €155 million:
Order Intake and Backlog
Perhaps the most impressive aspect of Fincantieri’s first-half performance was its exceptional order intake of €14.7 billion, nearly double the €7.6 billion recorded in the first half of 2024. This resulted in a book-to-bill ratio of 3.2x, indicating strong future revenue potential.
The order intake was predominantly driven by the cruise segment, which accounted for 96% of total orders secured in the period. The breakdown of orders by segment is shown below:
These new orders have contributed to a record total backlog of €57.7 billion, equivalent to 7.1 times FY 2024 revenues. This provides Fincantieri with exceptional visibility on future revenues, with orders extending as far as 2036.
As illustrated in the following chart, the company’s backlog is well-diversified across its business segments:
Strategic Initiatives
Fincantieri highlighted several strategic developments that position the company for long-term growth. The company is strengthening its role as a technological integrator in the underwater segment, developing its digital ecosystem through the Fincantieri Ingenium joint venture, and advancing industrial sustainability through CircularYard, a new company focused on innovative integrated waste management.
The company’s commercial pipeline remains robust at approximately €23 billion across all segments, including significant opportunities with major cruise lines like NCL, Crystal, and Viking, as well as defense contracts with the Italian Navy and international clients.
Forward-Looking Statements
Based on its strong first-half performance, Fincantieri has improved its guidance on the net debt to EBITDA ratio to 2.7-3.0x, while affirming its other 2025 targets. The company expects:
- Revenues of around €9 billion
- EBITDA margin above 7%
- Positive net result
As shown in the concluding remarks slide, the company is delivering results ahead of its business plan targets:
With a profound backlog providing visibility through 2036 and €20 billion in commercial opportunities in the defense sector, Fincantieri appears well-positioned to maintain its growth trajectory in the coming years. The expansion in the underwater segment represents a particularly promising avenue for future growth, as the company leverages its technological capabilities in this increasingly important market.
Full presentation:
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