This article first appeared on GuruFocus .
Release Date: March 25, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Fincantieri SpA ( FNCNF ) achieved a record net profit of 117 million in 2025, more than four times higher than in 2024.
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The company recorded a new all-time high in both order intake and total backlog, with an order intake of 20.3 billion and a backlog of 63.2 billion.
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Revenues increased by 13% year-on-year, reaching approximately 9.2 billion, supported by strong market tailwinds in the shipbuilding segment.
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The EBITDA margin grew significantly to 7.4% from 6.3% in 2024, driven by efficiency initiatives and a profitable business mix.
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Fincantieri SpA ( FNCNF ) successfully completed a 500 million capital increase, enhancing financial flexibility and supporting its selective inorganic growth strategy.
Negative Points
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The geopolitical environment poses potential risks, although the company has managed to mitigate some impacts through fixed energy and steel procurement costs.
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There is a concern about the potential impact of rising geopolitical conflicts on tourism volumes, which could affect the cruise business.
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The company's reliance on a high backlog for future revenue visibility may limit flexibility in responding to sudden market changes.
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Despite strong financial performance, the company faces challenges in maintaining growth momentum in a competitive shipbuilding industry.
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The infrastructure business, while showing improvement, is not considered a core component of Fincantieri SpA ( FNCNF )'s business model, raising questions about its long-term strategic fit.
Q & A Highlights
Q: Could you provide insights on the margin profile of the new cruise orders from Norwegian and Viking, and the expected profitability evolution in the cruise segment? A: We don't disclose precise margins, but the cruise business is moving towards saturation, optimizing fixed costs and procurement. This enhances profitability, supported by better pricing and risk profile due to repetitive ship orders. We expect margins to continue improving in the coming years. (CEO)
Q: Can you elaborate on the memorandum of understanding with Navantia on the European Corvette program and its impact on the defense pipeline? A: The memorandum is a significant step in European cooperation, aiming to create a competitive, interoperable platform. While orders aren't immediate, founding nations like Italy, Spain, and France are expected to commit to ordering ships soon, supporting our defense pipeline. (CEO)
Q: What are the key dynamics across business lines for your 2026 outlook, and can you provide details on the new US LSM program? A: 2026 revenues will be driven by our existing backlog. We expect significant defense order intake and improved margins. The US Navy's LSM program is progressing, with contractualization expected soon. We don't rely on US volumes short-term but anticipate long-term benefits. (CEO)
Q: How are geopolitical issues affecting your input costs, and what is your M&A strategy post-capital increase? A: We have fixed energy and steel prices for 2026, mitigating geopolitical impacts. Our M&A strategy focuses on selective acquisitions to enhance our underwater capabilities, targeting key technologies and market access without transformational changes. (CEO)
Q: Can you provide updates on the European SAFE program and the naval segment's Q4 2025 performance? A: The SAFE program is on track for a June 2026 gate, with no delays expected. The naval segment's Q4 performance aligns with production curves, and we anticipate significant order materialization soon. (CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
