Fincantieri S p A : Approval of Q1 2025 results

Press release STRONG GROWTH IN THE FIRST QUARTER OF 2025: EBITDA UP 54%, BEST EVER QUARTERLY ORDER INTAKE, TOTAL BACKLOG AT EURO 57.6 BILLION

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LAUNCH OF THE NEW UNDERWATER SEGMENT, WITH REVENUES AT EURO 95 MILLION AND EBITDA MARGIN AT 17% FINANCIAL RESULTS

• Significant growth in Revenues at euro 2,376 million (+35% vs Q1 2024)
• EBITDA increases materially year-on-year to euro 154 million (euro 100 million in Q1 2024), driven by solid performances across all segments, in particular in Shipbuilding (+53%)
• EBITDA margin at 6.5%, improving significantly compared to 5.7% achieved in Q1 2024, mainly thanks to the revenue growth in the defense segment, operational efficiency measures in the cruise business, and the contribution of WASS Submarine Systems (consolidated at the beginning of 2025)
• Net debt at euro 1,608 million, marginally better than the value recorded at year-end 2024, amounting to euro 1,668 million excluding the temporary effect of the rights issue completed in July 2024 to finance the acquisition of WASS (euro 1,281 million including this effect). Net debt to EBITDA (Last Twelve Months) ratio of 2.9 times in Q1 2025, notably improving compared to FY 2024. COMMERCIAL PERFORMANCE
• Best ever quarterly order intake totaling euro 11.7 billion as of March 31, 2025, showing extraordinary growth compared to Q1 2024 (euro 0.5 billion) and representing approximately 76% of the total record value achieved in 2024, with a book-to-bill ratio at 4.9 times revenues
• Backlog at euro 40.3 billion up 30% compared to year-end 2024, with total backlog (including soft backlog) reaching a record level at euro 57.6 billion, equal to about 7.1 times FY 2024 revenues
• 4 ships delivered in Q1 2025 and 102 units in portfolio with deliveries scheduled up to 2036

2025 GUIDANCE

Fincantieri confirms its 2025 guidance as communicated in its FY 2024 results release.

(euro/million)	31.03.2025	31.03.2024	Change
Revenues and income	2,376	1,767	34.5%
EBITDA(1)	154	100	53.5%
EBITDA margin(*)	6.5%	5.7%	0.8 p.p.
Order intake(**)	11,712	539	n.a.

n.a. not applicable

(1) This figure does not include extraordinary or non-recurring income and expenses. See definition contained in the paragraph Alternative Performance Measures (*) Ratio between EBITDA and Revenues and income

(**) Net of eliminations and consolidation adjustments

(euro/million)	31.03.2025	31.12.2024	Change
Net debt(1)	1,608	1,281	25.5%
Backlog(*)	40,344	30,978	30.2%

(1) See definition in the paragraph Alternative Performance Measures. Data as at 31.12.2024 includes the temporary effect of the rights issue concluded in July 2024 (*) Net of eliminations and consolidation adjustments

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Rome, May 12th, 2025 - The Board of Directors of Fincantieri S.p.A. ("Fincantieri" or the "Company"), chaired by Biagio Mazzotta, has approved the interim financial information as of March 31, 20251.

Pierroberto Folgiero, Fincantieri Chief Executive Officer and General Manager, commented:

"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 defense and critical submarine infrastructure domain. The first quarter of 2025 marks the best result in our history, with EBITDA growth of 54% and an unprecedented order backlog. These are the results of a long-term strategic vision based on rigorous financial discipline, solid industrial governance, and a strong ability to turn innovation into concrete solutions. The increase in revenues in the Defense segment and the consolidation of our three dimensions - cruise, defence and offshore - confirm the effectiveness of our integrated business model."

Mr. Folgiero concluded: "We will continue to pursue our goals for 2025 with determination and beyond, actively contributing to the reindustrialization of the country and the strengthening of the European manufacturing system. Fincantieri is today a future-proof laboratory of heavy industry, a champion of Made in Italy ingenuity, committed to generating employment, competitiveness, and sustainable innovation along the entire value chain."

‌Note: the percentage changes shown throughout the document are calculated on data rounded to the nearest thousand

1Prepared in accordance with International Financial Reporting Standards (IFRS) and not subject to audit

Highlights

In the first quarter of 2025, Fincantieri posts a substantial increase in profitability, with EBITDA up 54% compared to Q1 2024, reaching euro 154 million, and an EBITDA margin of 6.5%, significantly improving compared to the 5.7% recorded as of March 31, 2024. The growth in margins is particularly notable in Shipbuilding, driven by the defense sector and the initiatives implemented by the Group to enhance operational efficiency in the cruise business. A substantial contribution also comes from the newly established Underwater segment, with EBITDA margin at 17%, demonstrating the high profitability of the underwater sector.

Revenues grow to euro 2,376 million, up by 35% compared to March 31, 2024, with excellent performances in all the Group's business sectors. Order intake accelerates to euro 11.7 billion in the first three months of 2025, the strongest ever quarterly performance, with an extraordinary growth compared to Q1 2024 (euro 0.5 billion); the order intake in Q1 2025 is equal to approximately 76% of the entire record value achieved in 2024, with a book-to-bill (new orders/revenues) at 4.9x. This growth is mainly driven by the Shipbuilding segment, with the effectiveness of the contract with the Indonesian Ministry of Defense for the sale of two MPCS/PPA units, as well as the contracts effectiveness with Norwegian Cruise Line Holdings (NCLH) for four jumbo cruise ships and with Viking Cruises for four cruise ships.

As of March 31, 2025, backlog rises to euro 40.3 billion, up 30% vs FY 2024, with 102 units in portfolio and deliveries scheduled up to 2036. The soft backlog2 stands at euro 17.3 billion, for a total backlog of euro 57.6 billion, the highest value ever recorded by Fincantieri, equivalent to 7.1 times 2024 revenues.

Net debt stands at euro 1,608 million at the end of the first quarter 2025, marginally better than the year end 2024 figure of euro 1,668 million, excluding the temporary effect of the rights issue to fund the acquisition of WASS Submarine Systems completed at the beginning of 2025 (euro 1,281 million including the rights issue effect). Net debt to EBITDA (Last Twelve Months) ratio is equal to 2.9 times in Q1 2025, notably improving compared to FY 2024.

Opportunities and strategic developments

• Launch of the new Underwater segment: the new Underwater segment represents the center of excellence for the underwater domain and a strategic driver for innovation in the defense and civilian sectors. The segment integrates cutting-edge solutions, including U212 NFS (Near Future Submarine) for the Italian Navy and products of WASS and Remazel. WASS Submarine Systems, consolidated within the Group at the beginning of 2025, is active in the development of underwater acoustic technologies and advanced weapons systems, with applications in defense and critical infrastructure protection. Remazel Engineering, acquired in February 2024, is a leader in design and supply of high-complexity top-side equipment for the subsea and marine energy industries, with an established international presence. The Segment will lead the development of the national supply chain in the

  ‌2Soft backlog includes the value of existing contract options and letters of intent as well as of contracts at an advanced stage of negotiation, which are not yet reflected in the order backlog. Within the Italian Defense area, the soft backlog also reflects the programs included in the Defense Multi-Year Plan (Documento Programmatico Pluriennale - DPP); Fincantieri refers to this document in its financial reporting to ensure full transparency on the expected impact of these programs on future order intake and revenues

  underwater domain, promoting industrial and technological synergies, essential for security and deterrence needs arising from the evolving geopolitical scenarios.

• New Agreements Signed in Asia and Middle East: Fincantieri accelerates its expansion in Asia thanks to an Industrial Cooperation Agreement with thyssenkrupp Marine Systems, signed on April 16, 2025, which extends the 20-year partnership between the two groups to include joint export projects. Through this agreement, Fincantieri aims to support the modernization program of the Philippine Navy through the supply of U212 NFS submarines, designed to ensure technological excellence and stealth capability, strengthening the Group's positioning in a highly strategic region. Fincantieri also consolidates its presence in the Middle East through a major new operation. On February 17, 2025, MAESTRAL, a joint venture (JV) between Fincantieri and EDGE based in Abu Dhabi, acquired a five-year contract, worth approximately euro 500 million, a major "In-Service Support Strategic Partnership Project" for the entire UAE Navy fleet. The JV will serve as the industrial strategic partner, ensuring high operational, logistical, and technological standards. The agreement represents a significant step forward in the Group's growth in the area and strengthens the synergy with EDGE Group, enhancing the combined expertise of the respective shipyards.
• Cruise and Offshore backlog continues to grow: the backlog increases further in the first quarter of 2025, extending visibility up to 2036, further consolidating the Group's leadership in the cruise and offshore businesses. Norwegian Cruise Line's order for four new vessels - the largest ever built for the brand, with a gross tonnage of about 226,000 tons - confirms Fincantieri's ability to offer cutting-edge technologies and high-energy-efficient solutions. The customer portfolio has also been enriched with new brands, such as AIDA Cruises and Marella Cruises (Carnival Group and TUI Group, respectively), for which Fincantieri will build, for the first time, new-generation cruise ships, characterized by a strong orientation toward environmental sustainability. In the Offshore business, the Group reaffirms its excellent positioning thanks to the subsidiary VARD, with the signing of a contract with Dong Fang Offshore for the supply of a subsea operations ship, including an option for additional ships. The ability to offer tailor-made and technologically advanced solutions is thus confirmed as a distinctive capability of Fincantieri in all market segments.
• New step toward the net-zero revolution in the cruise industry: on April 8, 2025, Fincantieri announced the construction of the world's first hydrogen-powered cruise ship. The "Viking Libra," with delivery scheduled to the Viking Group within 2026, will feature first-of-a-kind solutions to load and store hydrogen directly onboard, developed by Fincantieri's subsidiary Isotta Fraschini Motori (IFM), that will allow the vessel to access even the most environmentally sensitive areas. The ship marks a turning point in the decarbonization of the industry, confirming the Group's role as a pioneer in the integration of revolutionary technologies and a promoter of the large-scale adoption of hydrogen in the maritime sector.
• Accelerating digital transformation in cruise and defense sectors and port facilities: on April 10, 2025, the Group announced the launch of the joint venture Fincantieri Ingenium (70% owned by Fincantieri NexTech, a subsidiary of Fincantieri Group, and 30% by Accenture). The JV will play a key role in executing the strategy outlined in Fincantieri's Business Plan and among the first strategic initiatives of the JV is the development of Navis Sapiens, a digital ecosystem designed for next-generation ships and the upgrade of existing fleets, which is expected to be installed on the first ship by the end of 2025.

Operational review by segment3

Revenues and income (euro/million) 31.0	3.2025	31.03.2024 restated(1)	Change
Shipbuilding	1,828	1,311	39.5%
Offshore and Specialized Vessels	319	299	6.7%
Underwater	95	41	n.a.
Equipment, Systems and Infrastructure	301	264	13.9%
Consolidation adjustments	(167)	(148)	n.a.
Total	2,376	1,767	34.5%
n.a. not applicable (1) The figures as at 31.03.2024 have been restated following the redefinition of the operating segments

Revenues are up 34.5% year-on-year, reaching euro 2,376 million at the end of March 2025, with a positive contribution from all business segments, and in particular from Shipbuilding (+39.5% vs Q1 2024).

Before consolidation adjustments, Shipbuilding contributes 72% to total Group revenues (68% in Q1 2024), followed by Offshore and Specialized Vessels at 13% (16% in Q1 2024), Equipment, Systems and Infrastructure at 12% (14% in Q1 2024), and Underwater at 4%.

Order intake (euro/million) 31.03.2025 31.03.2024

restated(1)

	Amount	%	Amount	%
Fincantieri S.p.A.	11,474	98	103	19
Rest of Group	238	2	435	81
Total	11,712	100	539	100
Shipbuilding	11,519	98	141	26
Offshore and Specialized Vessels	102	1	498	92
Underwater	84	1	13	3
Equipment, Systems and Infrastructure	164	1	194	36
Consolidation adjustments	(157)	(1)	(307)	(57)
Total	11,712	100	539	100

(1) The figures as at 31.03.2024 have been restated following the redefinition of the operating segments

On the commercial front, the first three months of 2025 mark an extraordinary growth in order intake, mainly underpinned by the cruise and defense businesses. The Group has finalized effective contracts

‌3The 2024 figures for the Shipbuilding and Equipment, Systems and Infrastructure segments have been restated due to the relocation of part of the respective businesses to the new Underwater segment