Fincantieri raises 2026 guidance after beating target for new contracts
Fincantieri's Upward Revision of 2026 Financial Guidance
ROME, May 11 (Reuters) - Italian shipbuilder Fincantieri revised upwards its 2026 guidance for revenue, core profit and net profit on Monday after it signed large new contracts early this year which beat its full-year target.
Strategic Focus and Market Recovery
In the past year, the group has been focusing on defence and high-margin naval contracts amid rising geopolitical tensions, while also benefiting from a recovery in cruise-ship demand, as part of a broader push to improve profitability and cut debt.
Updated Financial Targets
Revenue Projections
The state-controlled group said revenue at the end of this year would be between 9.3 billion euros and 9.4 billion euros ($10.9 billion-$11 billion), slightly up from the 9.2 billion to 9.3 billion euros set at its capital markets day in March.
EBITDA Outlook
It added that earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2026 would be between 700 million and 710 million euros, from a previous 700 million euros.
New Contracts and Order Backlog
Order Value and Timing
While the value of new orders slumped 70% in the first quarter versus the same period in 2025 to 3.4 billion euros, Fincantieri said in a statement the total did not include the value of large contracts which were signed in January to March as they had yet to come into effect.
Surpassing Contract Targets
These had enabled it to surpass a target of 11 billion euros in new contracts it had set for 2026, the company said.
CEO Statement on Growth Trajectory
"The first quarter of 2026 confirms the consistency and strength of the Group's growth trajectory," Chief Executive Pierroberto Folgiero said in the statement.
"Commercial performance has reached a new milestone, with the highest-ever total backlog of 74.2 billion euros, providing visibility on deliveries further extended through 2039," he added.
Net Profit Expectations
The Trieste-based company expects net profit for 2026 to be between 140 million and 180 million euros this year from the initial forecast of beating 2025 full-year profit of 117 million euros.
Additional Information
($1 = 0.8495 euros)
(Reporting by Giulia Segreti; Editing by Gavin Jones and Emelia Sithole-Matarise)
