(Alliance News) - Leonardo Spa's board of directors on Thursday approved its 2022 results, reporting a net profit of EUR932.0 million, up 59 percent from EUR687.0 million in 2021. The board also announced that it will propose a dividend in line with the previous year of EUR0.14 per share.

Revenues for the period amounted to EUR14.7 billion, up 4.7 percent from EUR14.1 billion in 2021 due in particular to the continued positive performance of helicopters and defense and security electronics, which offset the decline in aircraft in 2022, as well as the lower contribution from the sale of the Global Enterprise Solutions subsidiary.

Ebitda as of Dec. 31, 2022 is EUR1.22 billion up 9.3 percent from EUR1.12 billion in the previous year.

Ebit for 2022 is EUR961.0 million up 5.5 percent from EUR911.0 million in 2021.

Orders show strong growth standing at over EUR17 billion, up more than 20 percent from 2021 and consolidating the portfolio at over EUR37 billion. This positive trend affects all business areas to varying degrees, confirming the Group's commercial strength and the validity of its diversified, multi-domain offering of products, systems and solutions that meet customers' complex operational requirements, the company explained in a note.

Cash flow shows an increase of 158 percent while Group Net Debt shows a reduction of 3.4 percent compared to 2021, and stands at EUR3.01 billion from EUR3.12 milairdi in 2021.

"Significant cash generation and the proceeds from the sale of Global Enterprise Solutions and the Advanced Acoustic Concepts joint venture allowed the Group to continue on the path of debt reduction and, at the same time, to strengthen the core business through the purchase of the 25.1 percent stake in the German company Hensoldt, whose pro-rata profit is recognized in the 2022 consolidated Ebitda, and the consolidation of the Israeli company RADA into the Leonardo DRS subsidiary," Leonardo explains.

For 2023, Leonardo expects: high levels of new orders of around EUR17 billion; revenues of EUR15.0 15.6 billion, up from 2022 thanks to the contribution of new orders and the development of portfolio activities on defense and government programs; increasing profitability, with Ebita of EUR1.26 1.31 billion, supported by volume growth and confirmation of excellent levels of industrial profitability in the main business areas.

In addition, cash flow of about EUR600 million is expected, with the defense and government business providing solid cash generation while cash absorption in Aerostructures continues albeit to a lesser extent in 2022; group net debt of about EUR2.6 billion due to cash generation and net of expected dividend payout of EUR0.14 per share and new leases of about EUR100 million.

"We have once again met or exceeded our targets, we have structurally and decisively increased cash generation, with a FOCF of EUR539 million more than double last year's figure," commented Alessandro Profumo, Leonardo's CEO. "Thanks to significant cash generation and the divestments of Leonardo DRS businesses, we have reduced debt while strengthening the core business through the purchase of 25.1 percent of Hensoldt and the consolidation of RADA into Leonardo DRS.

"We are confident that in the future we will be able to achieve the challenging goals we have set for ourselves and continue to create sustainable value for all our stakeholders through the fundamental contribution of all our 51,000 people," he concluded.

Leonardo on Thursday closed 0.8 percent in the red at EUR10.72 per share.

By Chiara Bruschi, Alliance News reporter

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