How Leonardo will go on helicopters, airplanes, space, cyber. Here are the goals

All the forecasts of Leonardo's top management in the main sectors that make up the group led by Alessandro Profumo

Leonardo's forecasts are optimistic for almost all the sectors in which the former Finmeccanica group is active.

In particular, for the Aerostructures Division, still heavily impacted, Leonardo “expects a slight increase in volumes only for Airbus”.

Here are the numbers and scenarios that the aerospace and defense group puts in writing in the outlook 2022 communicated on 10 March .

THE 2022 GUIDANCE

WHAT DOES LEONARDO EXPECT FOR HELICOPTERS?

In 2022, the former Finmeccanica company expects "growing revenue volumes supported by the development of backlog activities on military / government programs and by a good flow of new orders". Furthermore, profitability is confirmed "at good levels also thanks to the initiatives to optimize industrial processes and improve the competitiveness of the main products, despite being affected by a production mix characterized by growing activities on contracts acquired as prime contractor".

As regards the forecasts on the total civil business helicopter market 2021-30 (value 26 billion), the CAGR is forecast at + 6.1%. In particular, Leonardo estimates “a growth in the EMS, SAR and Law Enforcement sector, also due to the emergency from Covid-19. Significant decline in the Oil & Gas sector, only partially offset by platforms for supporting alternative energy sources. The effects of the pandemic have also hit the passenger transport segment heavily, with negative forecasts in particular for the first five years, while for the second five years a recovery can be expected due to the resumption of passenger transport and the renewal of the related fleets ".

As for the military business, the 2021-2030 market is expected at 116 billion, Cagr down to -3.0%. Leonardo underlines that "the market is estimated to grow in the short term, due to the aging of many fleets, with a replacement process already started at the level of the main countries (eg United States, United Kingdom, France), but this process it will slow down at the end of the period under review, with a tendency to carry out only the necessary upgrades of the platforms in service, pending the availability of the new generation of medium-sized multi-role machines, based on new technologies ”.

ALL THE DETAILS ON THE OUTLOOK ON ELECTRONICS AND SECURITY SYSTEMS

For the current year, Leonardo expects for the electronics and security systems sector "a further recovery compared to the first pandemic period, with growing revenue volumes and an improvement in profitability". This will be achieved thanks to "constant attention to program execution and cost containment, despite the presence of a mix of activities still characterized by programs under development".

As for the total market of the sector 2021-2030 expected at 3,185 billion, the cagr is estimated at 6%. In particular, according to Leonardo in the civil sector, demand will be driven "by trends in sustainability (mobility and energy), digitalisation (public sector), security (borders and cities), cyber protection and resilience (institutions and critical infrastructures)". For the military, on the other hand, Leonardo predicts “in the Air domain, growth of avionics systems, electronic warfare and AESA (Active Electronically Scanned Array) radars, driven by the growing demand for combat and ISR (Intelligence, Surveillance and Reconnaissance) aircraft. In the Land domain, growth of C4 systems, radar and communication systems in the face of growing geopolitical tensions / threats; growing demand also for Counter-UAS (Unmanned Air Systems) systems to counter the emerging threat of unmanned aircraft. In the Naval domain, growth of command and control systems and integrated solutions (AESA radar, communications and electronic warfare); for the underwater segment, growth in demand for torpedoes, in particular heavy torpedoes. "

THE AERONAUTICS SCENARIO

According to Leonardo, “the trend of the civil component in 2022 will still be heavily influenced by the effects of the pandemic, with repercussions on production activities associated with the drop in demand from customers. In particular, for the Aerostructures Division, a slight increase in volumes is expected only for Airbus ". The recovery trend of the GIE consortium for the ATR program has also been confirmed.

"A further increase in revenue volumes is expected for the Aircraft Division due to the growth of activities on the proprietary platforms (M-345, M-346 and C-27J), while the solid contributions of the F-35 and EFA Kuwait programs are confirmed ". In fact, the group expects a further 9 deliveries to Kuwait after the first two made in 2021.

As regards the total market of the sector, it is expected to be 1,312 billion in civil and 700 billion in defense with CAGR equal to 7.8% and 6.3% respectively. In particular, in the civil sector Leonardo expects “demand for new civil aircraft, both for the supply of aerostructures or structural parts and for regional aircraft. All aeronautical programs, primarily those of Airbus and Boeing, to a lesser extent those of ATR, were affected by the sharp drop in demand induced by Covid-19, slowing down the renewal of the platforms over a medium-term horizon, even if the second part in 2021 showed signs of an increase in production, driven by a market in initial recovery, at least for the short term ".

In the military business, according to Leonardo "half of the world demand for military aircraft – manned and unmanned – will be concentrated in the US and Europe, with a prevalence of demand for combat systems, driven by new generation platforms such as F-35, Tempest and Future Combat Air System (FCAS). Together with the growth in demand for combat aircraft, the demand for trainer aircraft and for new training platforms will also grow, driven by the significant progress towards the VI generation, as well as by the introduction of multi-aircraft systems, which will entail a substantial evolution in the operations of flight and therefore in the training of pilots ".

THE SPACE OF LEONARDO

Finally, in the space sector, Leonardo "expects growing volumes of activity supported by a solid backlog and an improving operating profitability in particular in the manufacturing segment which continues its path of constant recovery despite a highly competitive context in terms of prices, execution and innovation especially in the telecommunications domain ". The solid commercial and operational fundamentals in the satellite services segment in Europe and Latin America are confirmed.

As regards the total market expected for 2021-2030 of 1.391 billion, the CAGR is estimated at 4.7%. In particular, the group led by Alessandro Profumo expects a "growth in demand driven by the growing demand for constellations made up of smaller, more efficient and less complex satellites" in the manufacturing sector. In the services sector, on the other hand, "space constitutes and will constitute an area of ​​ever greater development with constant growth for the players who provide communication, observation and, increasingly, innovative services to support space exploration".

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This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/come-andra-leonardo-su-elicotteri-aerei-spazio-cyber-ecco-gli-obiettivi/ on Mon, 14 Mar 2022 06:55:43 +0000.