Leonardo experienced a dip in first-quarter helicopter deliveries from a year ago but still saw increased revenues and earnings with more activity surrounding its dual-use AW families and from customer support, according to the Italian manufacturer.
“Our first quarter results reflect a solid start to the year and meaningfully surpassed our expectations. Strong steadfast customer demand continued to materialize across our broad and differentiated portfolio. We secured a healthy level of bookings that totalled nearly $1bn in the quarter, which translated to a 1.2 book-to-bill ratio,” said Bill Lynn, chief executive officer at Leonardo.
Releasing its first-quarter results late last week, Leonardo reported 28 helicopter deliveries in the first three months, compared with 31 in the same period last year. In the quarter, the company handed over 13 AW109/AW119 models, two AW169s, 11 AW139s, and one apiece of the AW189 and NH90.
Revenues from Leonardo’s helicopters division increased 16% to $1.259bn, compared with $1.085bn in first-quarter 2024. EBITA, meanwhile, was up 29.6% at the division to $70m, compared with $54m in first three months of 2024.
Backlog climbed 7% from a year earlier to $16.212bn as of March 31. Boosting backlog was a 15.6% increase in net orders, with a strengthening in the defense and government arenas. These orders totaled $2.36bn in the quarter and included a contract from Weststar for AW149s, AW139s, and AW109 Trekkers for use by the Malaysian government and a GD Helicopter Finance deal for 10 AW189s for the offshore sector.
The company ended the first quarter with a helicopters segment order backlog of $16.2bn – an addition of $1bn over the past 12 months.
Commenting on the impact of ongoing US tariffs on imports, Leonardo said that the it remains relatively insulated since defence/governmental sales are exempt. However, it did highlight that the company’s civil helicopter assembly line in the US will be impact by imports. However, the material impact from that will be at maximum be in the range of $10-20m in 2025 and 2026 since civil reneues are only 5% of the Leonardo’s US-based sales.
“As a reminder, our customer base is largely US defense in nature. Our geographic footprint is principally in the US with the exception of operations in Canada and Israel. And lastly, our direct supply chain is predominantly comprised of US-based companies,” said Lynn.
Core topicsBusiness/IndustryTopicsEarningsPlacesCanada Israel United StatesOrganisationsLeonardo WeststarPeopleBill LynnAircraftAW109 AW139 AW149 AW189
SHARE:
