Fincantieri (AO) | Buy | Three priorities to reignite confidence

Research evidence excerpt

Fincantieri (AO) | Buy | Three priorities to reignite confidence

finalised last February; 3) convincing the market that cruise is a "less bad" business than

perceived: 29 ships are repeated ships, 7 are prototypes and the price per berth has grown by >25% over the last three years.

Navis Sapiens: Fincantieri is moving from being the owner of the physical to being the owner of the digital specifications of the

ships which it builds: not only the owner of the manufacturing, but increasingly the owner of the automation system. The project

is the flagship initiative of Fincantieri Ingenium, a joint venture formed by Fincantieri NexTech (70%) and Accenture (30%),

created to accelerate digital transformation across the cruise, defence, and port infrastructure sectors. Through advanced digital

platforms, it will be possible to optimise routes, enable predictive maintenance, optimise energy management, and improve

overall operations. Fincantieri expects Navis Sapiens to lead to a continuing upgrade of the technological content of the ships,

with an ultimate benefit on margins. The Four Seasons I, delivered in February 2026, is the first Navis Sapiens vessel — described

as the world's first intelligent ultra-luxury ship.

Underwater and recent ABB: more M&A in sight: management sees a sound potential in submarine drones, acoustic

communication. Fincantieri is active in both defence and civil underwater. The ABB worth EUR500m finalised last February is

devoted to accelerating the footprint in "unconventional underwater", including M&A. There are some identified M&A targets. The

company is happy about the WASS and Remazel acquisitions.

Our investment view

Our SOP-based valuation points to EUR17 (16.5). Our EPS 2028E is 85% above 2026E, which the current valuation, derated 2x from