Italy’s Fincantieri has reported a significant rise in profitability in the first quarter (Q1) of 2025, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) climbing 54% to €154m ($171.54m) from the same period in 2024.
The EBITDA margin also increased to 6.5%, up from 5.7% in Q1 2024. This improvement in margins was especially pronounced in the Shipbuilding division, fuelled by defence contracts and measures taken by the company to boost operational efficiency in its cruise segment.
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Additionally, the newly formed Underwater division contributed notably with an impressive EBITDA margin of 17%, highlighting the sector’s high profit potential.
Revenue for the company also saw an uptick, reaching €2.38bn, marking a 35% increase from the previous year’s figures. This growth was consistent across all business sectors within the group.
The order intake during this period surged to €11.7bn, representing the strongest quarterly performance on record for Fincantieri and a substantial jump from the first quarter of 2024.
This intake in Q1 2025 accounts for approximately 76% of the entire record value achieved in 2024, with a book-to-bill ratio at 4.9x.
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By GlobalDataAs of 31 March 2025, the company’s backlog climbed to €40.3bn, marking a 30% increase from FY 2024, with 102 units in the portfolio and deliveries scheduled up to 2036.
The soft backlog is reported at €17.3bn, bringing the total backlog to a record €57.6bn, equivalent to 7.1 times the revenues of 2024.
Fincantieri said its net debt has marginally improved to €1.61bn at the end of Q1 2025.
Fincantieri said it plans to bolster its position in key high-potential regions, notably the Middle East, through the MAESTRAL joint venture established in 2024 with EDGE Group.
This group’s presence in Southeast Asia is also expediting with an Industrial Cooperation Agreement with thyssenkrupp Marine Systems. The company will support the Philippine Navy’s modernisation programme.
Fincantieri is also looking to capitalise on additional prospects in the underwater sector with its newly formed Underwater Technology division.
Fincantieri CEO and general manager Pierroberto Folgiero said: “The creation of the new Underwater segment represents a fundamental step in the Group’s industrial evolution. We have entered a strategic domain of very high technological complexity, where the ability to integrate advanced systems and develop dual-use solutions will be decisive for European competitiveness and national security.
“This positioning further strengthens our role as a technology enabler in the defence and critical submarine infrastructure domain.”
The group remains focused on executing its 2023-2027 Business Plan throughout the year. Fincantieri has reaffirmed its financial targets for 2025 as outlined in its full-year 2024 financial report.
