Fincantieri S.p.A. (FCT.MI) | Investment Case

1. Company Snapshot

1.a. Company Description

Fincantieri S.p.A. operates in the shipbuilding industry.The company operates in three segments: Shipbuilding; Offshore and Specialized Vessels; and Equipment, Systems and Services.The Shipbuilding segment designs and constructs cruise ships; ferries, including cruise, Ro-Pax, and due fuel ferries; naval vessels, such as aircraft carriers, destroyers, frigates, corvettes, patrol vessels, amphibious and logistic support ships, multirole and research vessels, special vessels, and submarines; and mega yachts, as well as expedition cruise vessels.

The Offshore and Specialized Vessels segment designs and constructs offshore support vessels, specialized ships, and vessels for offshore wind farms and open ocean aquaculture, as well as other products in the field of drill ships and semi-submersible drilling rigs.This segment also provides electrical systems, including engineering, manufacturing, installation, integration testing, and commissioning services.The Equipment, Systems and Services segment provides stabilization, propulsion, and positioning and power generation systems; ship automation systems, steam turbines, and ship accommodation systems; entertainment systems and steel structures; cabins and public areas; catering; and electric, electronic, and electromechanical integrated systems.

This segment also offers ship repairs, refitting, refurbishment, conversions, and product lifecycle management services, as well as after-sales support services.In addition, it is involved in the dry-dock management; project management; accommodation installation; and pipe installation.Further, the company provides electrical parts, technical and logistics engineering services, and ship interiors.

It primarily serves ship owners and the defense sector worldwide.The company was founded in 1959 and is based in Trieste, Italy.Fincantieri S.p.A. is a subsidiary of CDP Industria S.p.A.

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1.b. Last Insights on FCT

Fincantieri S.p.A.'s recent performance was driven by a favorable market environment, with the pan-European STOXX Europe 600 Index experiencing a streak of weekly gains. The company's valuation appears to be trading below its estimated value, making it an attractive opportunity for investors seeking undervalued stocks. Additionally, the company's resilience amidst global trade uncertainties and potential for growth contribute to its positive outlook. Furthermore, the recent labor shortages and rising steel costs in the shipbuilding industry may benefit Fincantieri, as it could lead to increased demand for its services.

1.c. Company Highlights

Last Price	17.63
Change Percentage	2.44%
Open	17.39
Previous Close	17.21
Market Cap ( Millions)	5715
Volume	2178736
Year High	27.38
Year Low	6.55
M A 50	21.45
M A 200	16.17

FCF Yield	9.39%
Dividend Yield	0.00%
ROE	11.33%
Debt / Equity	288.77%
Net Debt / EBIDTA	394.11%
Price To Book	6.76
Price Earnings Ratio	62.04
Price To FCF	10.65
Price To sales	0.65
EV / EBITDA	15.03

2. Fincantieri's 9M 2025 Results: Robust Revenue Growth and Increasing Order Intake

Fincantieri reported a robust financial performance for the first 9 months of 2025, with revenue growing 20.5% year-on-year to EUR 6.725 billion. EBITDA posted an impressive 40.4% growth, reaching EUR 461 million, and the EBITDA margin improved to 6.9%, compared to 6.3% at year-end 2024 and 5.9% in the first 9 months of 2024. However, EPS came out at EUR 0.0569, below analyst estimates of EUR 0.15.

Publication Date: Nov -30

                                    📋 Highlights
                                    Revenue & EBITDA Growth::
                                                Revenue surged 20.5% to EUR 6.725 billion; EBITDA jumped 40.4% to EUR 461 million, with margin improving to 6.9% (vs. 6.3% in Q4 2024).
Order Intake & Backlog::
                                                EUR 16 billion in new orders (88.4% YoY growth) and a record EUR 61.1 billion backlog (7.5x 2024 revenues) ensure long-term visibility.
Defense Expansion::
                                                Strong pipeline in Italy (Destroyer, PPA programs), Europe’s EUR 150 billion SAFE initiative, and Middle East/Asia (Emirates, Saudi Arabia, Southeast Asia) drive growth.
Underwater Segment::
                                                Premium margins and strategic partnerships (e.g., EDGE joint venture) expand export opportunities and strengthen Fincantieri’s underwater domain leadership.
2025 Guidance::
                                                Targets EUR 9 billion revenue, EBITDA margin >7%, and net debt-to-EBITDA between 2.7–3x, reflecting confidence in deleveraging and operational efficiency.

                                

Operational Highlights

The company's operational performance was strong, with a significant increase in profitability driven by operational efficiency initiatives in the cruise sector and growth in the defense business. Fincantieri's underwater segment continues to deliver premium margins, strengthening its position as a key value and profitability driver. The company expects to deliver 19 units from 9 shipyards in the first 9 months, with a full slate of deliveries scheduled up to 2036.

Order Intake and Backlog

Fincantieri's order intake was remarkable, with EUR 16 billion in new orders, rising by 88.4% compared to the previous year, and a book-to-bill ratio of 2.4x. The backlog reached a record high of EUR 61.1 billion, approximately 7.5x 2024 revenues, providing exceptional visibility on the long-term business outlook.

Valuation and Outlook

With a P/E Ratio of 59.86 and an EV/EBITDA of 14.64, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 5.5%. Fincantieri's net debt-to-EBITDA ratio is 2.6x, and the company confirmed its guidance for 2025, with revenues expected to reach approximately EUR 9 billion and EBITDA margin greater than 7%. The company's strong results and positive outlook for the full year are supported by its initiatives to improve working capital dynamics and rapid deleveraging trajectory.

Defense and Underwater Business

Fincantieri is well-positioned to capture growth opportunities in defense and is consolidating its position as a leading orchestrator in the underwater domain. The company is expanding its product portfolio and targeting export opportunities, with a strong presence in the Middle East and Southeast Asia. According to CEO Pierroberto Folgiero, "the 2030 condition will push the defense market to accelerate, and the company is well-positioned to pursue opportunities in Europe."

3. NewsRoom

Does Fincantieri’s 151.8% Gain Reflect the Value of Its New Shipbuilding Contracts?

Nov -27

Source:

Fincantieri (BIT:FCT): Evaluating Valuation After Notable Share Price Movements

Nov -27

Source:

Fincantieri Marine Group to Reshape Constellation Class Program to Better Support Evolving Needs of the U.S. Navy, Strengthening Strategic Partnership

Nov -25

Source:

Navy Scraps Plans for Troubled Warship Design

Nov -25

Source:

Fincantieri SpA (FNCNF) Q3 2025 Earnings Call Highlights: Record Backlog and Strong Order ...

Nov -19

Source:

Shipbuilder Fincantieri’s Revenue Rises on 85% Jump in Underwater Business

Nov -12

Source:

Will Norwegian’s (NCLH) Ultra-Luxury Ship Order Redefine Its Long-Term Premium Market Strategy?

Nov -11

Source:

Norwegian Cruise Line Holdings Confirms Newbuild Order for Third Prestige-Class Ship for Regent Seven Seas Cruises

Nov -10

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.08%)

6. Segments

Shipbuilding

Expected Growth: 6%

Fincantieri S.p.A.'s 6% growth in shipbuilding is driven by increasing global demand for eco-friendly and technologically advanced vessels, rising investments in offshore wind farms, and growing cruise industry capacity. Additionally, the company's strategic partnerships, innovative designs, and cost-effective production processes contribute to its growth momentum.

Offshore and Specialized Vessels

Expected Growth: 5%

Fincantieri's Offshore and Specialized Vessels segment growth is driven by increasing demand for oil and gas exploration, rising investment in renewable energy, and growing need for specialized vessels in the offshore wind industry. Additionally, the company's strong order book, technological advancements, and strategic partnerships contribute to its growth momentum.

Equipment, Systems and Infrastructures

Expected Growth: 8%

Fincantieri's 8% growth in Equipment, Systems and Infrastructures is driven by increasing demand for naval defense and commercial shipbuilding, backed by government investments in maritime security and infrastructure development. Additionally, the company's focus on innovation, digitalization, and sustainability is enhancing its competitiveness, leading to market share gains and new contract wins.

Other Activities

Expected Growth: 4%

Fincantieri's Other Activities segment, with 4% growth, is driven by increasing demand for naval systems and equipment, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation and R&D investments in areas like cybersecurity and digitalization are contributing to growth.

7. Detailed Products

Cruise Ships

Fincantieri designs and builds luxury cruise ships for top cruise lines, offering bespoke solutions for unique passenger experiences.

Naval Vessels

Fincantieri constructs naval vessels, including frigates, corvettes, and submarines, for national navies and coast guards.

Ferries and Ro-Pax Vessels

Fincantieri builds ferries and Ro-Pax vessels for passenger and cargo transportation, offering efficient and comfortable travel solutions.

Offshore and Special Vessels

Fincantieri designs and builds specialized vessels for offshore oil and gas, wind farms, and other industries, meeting unique operational requirements.

Ship Repair and Conversion

Fincantieri provides repair, maintenance, and conversion services for all types of vessels, ensuring optimal performance and extending vessel lifecycles.

Systems and Components

Fincantieri develops and supplies advanced systems and components for the naval and maritime industries, including propulsion, electrical, and automation systems.

8. Fincantieri S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Fincantieri S.p.A. is medium due to the presence of alternative shipbuilding companies and the increasing competition from emerging markets.

Bargaining Power Of Customers

The bargaining power of customers for Fincantieri S.p.A. is low due to the company's strong reputation and the complexity of the products it offers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Fincantieri S.p.A. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Fincantieri S.p.A. is low due to the high barriers to entry in the shipbuilding industry and the company's established position.

Intensity Of Rivalry

The intensity of rivalry for Fincantieri S.p.A. is high due to the presence of several established competitors and the ongoing competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	87.69%
Debt Cost	8.87%
Equity Weight	12.31%
Equity Cost	10.35%
WACC	9.05%
Leverage	712.47%

11. Quality Control: Fincantieri S.p.A. passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Avon Protection

A-Score: 5.1/10

Value: 1.8

Growth: 5.6

Quality: 3.8

Yield: 3.8

Momentum: 10.0

Volatility: 5.7

1-Year Total Return ->

Lisi

A-Score: 4.5/10

Value: 3.4

Growth: 5.0

Quality: 3.9

Yield: 1.2

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

Montana Aerospace

A-Score: 4.4/10

Value: 3.6

Growth: 7.4

Quality: 4.9

Yield: 0.0

Momentum: 8.0

Volatility: 2.7

1-Year Total Return ->

Fincantieri

A-Score: 4.4/10

Value: 2.8

Growth: 9.4

Quality: 2.4

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

Senior

A-Score: 4.4/10

Value: 4.3

Growth: 3.6

Quality: 3.6

Yield: 0.6

Momentum: 8.5

Volatility: 5.7

1-Year Total Return ->

Exail

A-Score: 3.1/10

Value: 1.1

Growth: 5.1

Quality: 2.3

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

5.18%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.05%

Fincantieri S.p.A. - IT0001415246

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on FCT

1.c. Company Highlights

Lower Quality

Lower Yield

Fairly Valued

More Volatile

Revenues Miss

Strong Momentum

Revenues Beats

Higher Growth

Earnings Miss

2. Fincantieri's 9M 2025 Results: Robust Revenue Growth and Increasing Order Intake

Operational Highlights

Order Intake and Backlog

Valuation and Outlook

Defense and Underwater Business

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.08%)

6. Segments

Shipbuilding

Expected Growth: 6%

Offshore and Specialized Vessels

Expected Growth: 5%

Equipment, Systems and Infrastructures

Expected Growth: 8%

Other Activities

Expected Growth: 4%

7. Detailed Products

Cruise Ships

Naval Vessels

Ferries and Ro-Pax Vessels

Offshore and Special Vessels

Ship Repair and Conversion

Systems and Components

8. Fincantieri S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Fincantieri S.p.A. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.63$

Current Price

17.63$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA