Italian company Leonardo posts strong results in Q1 2021
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Leonardo posts strong results in Q1 2021

07 May 2021 (Last Updated May 7th, 2021 11:50)

Italian multinational aerospace, defence and security company Leonardo has posted strong results in the first quarter of 2021.

In the first three months of the year, the company’s revenues amounted to €2.79bn, a 7.7% jump from €2.59bn recorded in the same quarter of the prior year.

EBITA jumped 131.7% from €41m to €95m on a year-on-year basis with a considerable increase in all business segments except for Aerostructures.

Net loss of the company also declined from €59m in Q1 2020 to €2m in Q1 2021.

The company said that the results are in line with the expectation of a recovery in growth and an increase in profitability as earlier reported.

The total value of new orders in the quarter amounted to €3.4bn, flat compared to the same quarter last year.

Leonardo’s backlog fell 1.6% to €36.4bn.

The company’s Defence Electronics & Security recorded an increase in new orders while Helicopters and Aeronautics units witnessed a drop.

The Helicopters, and Defence Electronics & Security segment revenues increased by 12.5% and 10% respectively. For Aeronautics, the figure fell by 5.1%.

Leonardo CEO Alessandro Profumo said: “First quarter 2021 results are in line with our expectations when we recently set out our guidance for the full year. We have continued to achieve good order intake and our strong backlog has supported growing revenues.

“Our profitability has remained robust and our cash flow is improving, in line with plan. Our solid military and governmental business offset the impact of the Covid pandemic on the civil side.”

Last month, Leonardo signed a deal to purchase a 25.1% stake in Germany-based defence technology company Hensoldt for around €606m.

The deal, if completed, will make Leonardo the largest shareholder of Hensoldt.