Fincantieri has pledged to double its core profit to $1.49 billion in 2030 under a new multi-year strategy that will also increase shipyard production capacity in Italy and expand its underwater business. The company aims to achieve this by shifting part of the cruise-ship section production to Romania and reorganising the offshore and specialised vessels business.
The Italian shipbuilder is projecting a 40% increase in revenue through 2030, with a further target to double it to $18 billion by 2035 from the around $9 billion it expects to report for 2025. This growth is expected to be driven by the increasing demand from the defence sector as Europe steps up military spending.
Fincantieri has revised up its core profit margin expectation for 2025 to 7.4% and said it would further expand it to 13%, or $2.3 billion, in 2035. This represents a significant increase in profit margins, which will be crucial in driving the company's growth strategy.
To achieve this growth, Fincantieri is focusing on expanding its operations in Vietnam under a revamp of its shipyard production system. The company aims to develop new technologies at its underwater division and deepen links with its defence business.
Fincantieri also plans to pursue selective acquisition opportunities in the high-tech, strategically important market of defence. This will enable the company to expand its capabilities and stay ahead of the competition.
The company's previous target for 2025 was a margin for earnings before interest, tax, depreciation and amortisation above 7% and a positive net profit. However, it has now revised this up to 13%, or $2.3 billion, in 2035.
In 2026, Fincantieri is targeting revenue of between $9.2 billion to $9.3 billion euros, net profit above the previous year, and an EBITDA margin of around 7.5%. This growth is expected to be driven by the increasing demand from the defence sector.
The shift towards a defence-centred strategy is driven by rising demand from the sector, with Europe stepping up military spending and new contracts already coming in this year. As a result, Fincantieri's decision to double its core profit and expand its operations is likely to have a positive impact on the company's growth prospects.
Overall, Fincantieri's new strategy is expected to drive significant growth and increase its competitiveness in the market. The company's focus on defence will enable it to tap into a high-growth industry and stay ahead of the competition.
The shift towards a defence-centred strategy is driven by rising demand from the sector, with Europe stepping up military spending and new contracts already coming in this year.
