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Leonardo published its H1 23 figures with a 21.4% increase in the order intake and a 6.4% increase in revenues. However, net income dropped by 22.1% yoy, driven by higher financial expenses and additional restructuring charges. None the less, the company has re-iterated its FY23 guidance and lowered its net debt by 24%. Additionally, the new CEO’s willingness to facilitate cost reduction, makes the company leaner and to make space and cyber the strategic priorities are well accepted by the marke
Companies: Leonardo SpA
AlphaValue
Leonardo published Q1 results below market expectations with revenues in-line with estimates, but EBITA and NI missing the consensus by 13% and 17% respectively. However, the company pleasantly surprise us with a 29% yoy hike in order intake, implying a backlog equivalent to more than 2.5 years of production, and a €400m improvement in FOCF. The company has confirmed its FY23 guidance since it expects an improvement in performance over Q2-Q4.
Leonardo has performed strongly. Its strong traction in military as well as a gradual recovery in its civil aviation businesses have led to a guidance upgrade in both order intake and FOCF. The disposals of GES and AAC have been used to repay two US bonds with high coupons, overall improving its balance sheet’s health. The listing of Leonardo DRS on the Nasdaq is expected to occur in Q4, bringing additional value to the Italian defence firm. However, inflation is worrying.
Leonardo has posted results overall in-line with expectations. This was not appreciated by the market as the previous results coming from Defence companies had been strong with guidance being reviewed upwards thanks to a positive FX effect. However, the commercial traction remains robust and the recent Typhoon contract will continue to drive midterm growth for Leonardo.
Through an all-stock merger, Leonardo DRS and RADA will become one entity by the year end. The objective is to create synergies between the two companies before listing the resulting firm on the NASDAQ and TASE exchanges where we believe the valuation of Leonardo DRS could be significantly improved. It is positive news, as Leonardo has been struggling for the past year to dispose of this valuable division at a fair price.
Leonardo has published strong results to start the year. The good commercial momentum and the increased profitability are strong signals for Leonardo’s bright future. This quarter was also marked by the sale of its GES business to SES, another step towards the streamlining of its Defence portfolio. The FY22 guidance has been reiterated.
Leonardo has confirmed that there will be a before and an after the invasion of Ukraine. Indeed, even though the results and near-term guidance are roughly in line with consensus, the long-term perspectives have never been brighter. The FCOF mid-term guidance has been the greatest surprise, far above the consensus expectations. Its product portfolio is well set to benefit from the increased military budgets in Europe.
Leonardo published results which were globally in line with expectations in terms of sales and profitability. The Aerostructure division is still weighing on the results, as the pandemic and the B787 programme issues are still affecting the business.
Leonardo published yesterday some solid results with good profitability linked to the resilience in the military segment and the recovery in the narrow-body market. The DRS activity also performed well; Leonardo might attract better prices.
Leonardo published a good set of results with an increase in sales and a good order intake. Profit was also better yoy. Overall, Leonardo is well set to reach its 2021 guidance.
Leonardo’s FY20 publication was good, in line with estimates as well as with the preliminary announcement released in late January. Overall, the results showed resilience, supported by the military and governmental activities. The company delivered on its guidance, with a record Q4 FOCF generation. The company should renew with growth in 2021, along with a gradual improvement in both profitability and cash generation.
Leonardo’s Q3 result revealed a strong outperformance compared to expectations, driven by the defence activities. In spite of a flattish top line yoy, the company registered improvements in profitability. All financial guidance is maintained for 2020, but Q4 will be determinant for achieving the FOCF target following delays in Q3. We maintain our Buy rating on the stock.
Leonardo’s H1 release was a strong beat above market expectations, shining by the resilience of its business model (heavily oriented toward defence business where demand remains healthy). The activity is expected to rebound across every major segment in H2 except for civilian, where the impact from the pandemic should last beyond 2020. We reiterate our Buy rating on the stock.
Leonardo released mixed results, showing the early impact of COVID-19 on its profitability, while sales were in line with expectations. The positives of the release were the strong order intake achieved in Q1 and the good management of cash consumption. Q2 will be more impacted, but the usual activity pattern of the company might mitigate the impact on an FY basis, though guidance is withdrawn.
Leonardo published its FY19 results, which came in above the consensus despite a previous communication when the group said it expected to outperform its own guidance. Operational improvements were recorded in all divisions. Going forward, Leonardo was not in position to quantify the COVID-19 impact on its FY20 results, but a downside is expected. In the longer run, we continue to see a fundamental improvement in the operations and cash generation.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Leonardo SpA. We currently have 21 research reports from 4 professional analysts.
The FY24 year-end update is very upbeat signalling trading being materially ahead of expectations, with a better-than-expected profit out turn and stronger cash generation. It continues to strengthen margins through efficiencies and investment in modern equipment. The order book remains close to record levels providing a robust view of future forecasts. In FY24E we upgrade EPS by 11% and in FY25E a significant upgrade of 27.6%. It looks capable of declaring a dividend in FY25 as well as manageme
Companies: Renold plc
Cavendish
Companies: BILN ELCO NXQ CUSN ATG
FY23 results show very strong growth over FY22, driven by strong Structural Steel activity, with results slightly ahead of upgraded profit expectations, while stronger than expected cash flow resulted in an unexpectedly generous dividend of 33p (offering a FY23 yield of 7.0%). The group now has net cash of £22.1m and is debt free and is therefore in a strong position for potential M&A activity. Following the recent £90m of new orders to increase the order book to record levels we conservatively
Companies: Billington Holdings Plc
Another Good Year of Diversified Growth with More to Come in 2024 CCapital have released their Q1 operating results. Overall, revenue has come in slightly lower than expected at $80.2m vs TamE of $85.9m but is largely tracking in line with our FY24 annual estimate and we note the company has maintained guidance. Drilling revenue for this quarter was impacted by a fall in utilisaztion rates as well as general remobilisation geographically but we expect a strong recovery throughout the year as k
Companies: Capital Limited
Tamesis Partners
Plant Health Care announced it has signed a distribution agreement with AMVAC, an American Vanguard Company, to support commercialisation of novel fertiliser products incorporating Plant Health Care's Harpinαβ in China starting in 2024. The novel product combines Harpinαβ technology with an AMVAC fertiliser and is expected to help growers improve crop quality and yield as part of an integrated and environmentally responsible crop production programme. AMVAC continues to evaluate Plant Health Car
Companies: Plant Health Care PLC
Companies: 88E RNO TRIN KRM EXR BOOM
discoverIE’s March year-end update confirms a strong operational performance in challenging markets. Following two years when sales increased by +48%, FY 2024 Group sales were +1% ahead of 2023 at CER (reported -3%) driven by a +2% contribution from acquisitions and organic -1%. As expected, organic growth returned in the later part of the year (Q4 +2%, +11% sequentially) and the order book has reverted to normalised levels of c.4.5 months’ sales, which – combined with a continuing strong pipeli
Companies: discoverIE Group PLC
Severfield’s trading update indicates that FY23 results are expected to slightly exceed market expectations and the company ends the year with a record UK and Europe order book. Furthermore, with a positive trading outlook and net debt coming in lower than expected, Severfield has announced a £10m share buyback, highlighting the cash-generative nature of the company and management’s confidence in its position. The stock trades on an FY25 P/E of less than 6x and yields 7%, which we believe appear
Companies: Severfield Plc
Edison
Companies: Iofina plc
Canaccord Genuity
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SP Angel
Acquisitions have been an important element of Severfield management’s growth strategy, with the aim of adding new products, sectors and regions to what we have identified as exciting long-term organic opportunities. In this Spotlight report, we focus on the group’s targeted M&A approach, highlighting three significant deals.
Progressive Equity Research
Liberum
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
Companies: AEIT ROOF DGI9 INPP GSF SEIT USFP HICL ORIT BSIF TRIG NESF SEQI HEIT GRP GCP FSFL 3IN AERI PINT RNEW BBGI GSEO DORE TENT GRID CORD HGEN AEET
Hardman & Co
Invinity’s update on discussions with strategic investors reveals interest from multiple parties. While this has slightly delayed finalising an agreement it increases the potential for a better outcome. Although details are unknown at this stage, we think there is enough in the statement to be comfortable that any agreements will be consistent with the company’s strategy of growing market share in core markets and using a licencing and royalty model in other markets.
Companies: Invinity Energy Systems PLC
Longspur Clean Energy
Companies: ATOME PLC
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