FINCANTIERI (=) : Conf call feedback

Research evidence excerpt

FINCANTIERI (=) : Conf call feedback

EQUITIES

AEROSPACE & DEFENSE

FINCANTIERI NEUTRALPRICE* EUR11.4  TARGET PRICE EUR13.5 (UPSIDE 19%)

FLASH NOTE

Conf call feedback

11 MAY 2026 Securities Research Report Production time: 20:24* (London time)

Research Analyst & Publishing Entities

Michele Baldelli, CFA BNP Paribas SA (+39) 02 8963 1744 michele.baldelli@bnpparibas.com

What happened?

Fincantieri hosted their conf call after Q1 2026 results. Here we present the feedback:

The company is exhibiting improving margins in the shipbuilding division driven by better pricing, efficiency and

operating leverage in the cruise division where revenues per tonne is also increasing (by 2030 the revenue per tonne

should increase by 20%). Raw materials like steel and gasoline have been hedged for 2026 and partly also for 2027.

Signature of new orders already went over the annual target of EUR11bn. In the soft backlog there are still the 3

Princess Cruise LNG vessels and the largest-ever torpedo contract for WASS.

The EUR5bn order intake expected by the summer is still expected to come in the next few months and relates primarily

to the Italian Navy programs but also to foreign navies.

Management highlighted the opportunity of such a scenario with higher oil prices for the offshore division both in wind

projects for energy security in Europe and also for the O&G industry itself, in a moment when VARD, its offshore

subsidiary, is pursuing growth opportunities in commercial segments like cable layers and next-gen icebreakers.

In M&A, Fincantieri is pursuing opportunities in Underwater (make or buy is always strategically considered also in the

M&A strategy): Management is not overly focused on acquisitions in Naval. In general, the acquisitions should also