March 25 (Reuters) - Italian shipbuilder Fincantieri reported a 150% rise in its yearly adjusted net profit to 143 million euros ($166 million) on Wednesday, boosted by its underwater business line
Italy's Fincantieri on the lookout for deals to expand underwater business
Fincantieri's Expansion Strategy and Financial Performance
By Romolo Tosiani and Elvira Pollina
Scouting for Deals in the Underwater Sector
MILAN, March 25 (Reuters) - Fincantieri is scouting for deals to speed up its expansion in the fast-growing underwater business, the head of the Italian shipbuilder said on Wednesday.
The state-controlled company reported a more than fourfold jump in its annual profit to 117 million euros ($136 million), boosted by the underwater unit, where revenue rose 88%.
Mergers and Acquisitions Focus
"We are very active on M&A ... There are different possible transactions", Chief Executive Pierroberto Folgiero told analysts after the earnings release.
He added Fincantieri was not pursuing a transformational deal, but focusing on smaller transactions to expand in the submarine business, including in non-defence markets.
Targeted Areas for Growth
Folgiero pointed to propulsion systems, electronics and software for command-and-control, and telecommunications as areas where the company may seek acquisitions after completing a 500-million-euro capital increase last month.
Strategic Focus and Market Position
Fincantieri has sharpened its focus on defence and high-margin naval programmes over the past year amid rising geopolitical tensions, while also benefiting from a recovery in cruise-ship demand, as part of a broader push to improve profitability, cut debt and reposition the group.
Order intake reached 20.3 billion euros last year, up 32% from 2024.
International Collaboration and Projects
Folgiero said Romania and Greece were interested in joining the European Patrol Corvette project, which Fincantieri is developing with Spain's state-held Navantia to create a new class of patrol vessels.
Cruise Ship Market Outlook
On cruise ships, he said sentiment among ship owners remained buoyant despite the Middle East crisis.
"We continue to see a lot of energy, a lot of interest in occupying future slots," he said.
Market Reaction and Additional Information
Shares of the Trieste-based company closed around 6% higher after gaining as much as 7.5% following the results.
($1 = 0.8613 euros)
(Reporting by Elvira Pollina in Milan, Romolo Tosiani and Mirko Miorelli in Gdansk. Additional reporting by Giulia Segreti in Rome. Editing by Milla Nissi-Prussak, Alvise Armellini and Mark Potter)
