Fincantieri S.p.A. (FNCNF) Q2 2026 Earnings Call Transcript

Hello. Good afternoon. Welcome to Fincantieri First Half 2026 Results Conference Call. We are pleased to report another outstanding set of results marked by strong margin expansion, record net profit and continued deleveraging driven by solid cash generation. These achievements further demonstrate the successful execution of our strategy and the group's ability to convert strong commercial momentum into sustainable and profitable growth. We delivered a further step change in profitability with EBITDA growing 12.5% and margin reaching 7.6%. Margin expansion was mainly driven by favorable pricing dynamics and efficiency measures in cruise, higher margin on defense programs currently under construction as well as the increasing contribution of underwater. Net profit consequently rose to a record EUR 102 million, almost tripling from first half of 2025 and reaching a level close to the all-time high of EUR 117 million achieved in full year 2025. Commercial performance remains particularly strong. Vard secured the largest contract in its history with the Royal Saudi