With the recovery of the cruise industry, the global leader in cruise ship construction, Fincantieri Group from Italy, has successfully turned losses into profits. Last year, it received orders over 120 billion yuan, setting a new record and holding orders worth over 400 billion yuan.
Recently, Fincantieri released its full year 2024 financial report. Last year, Fincantieri's revenue increased by 6.2% year-on-year to 8.128 billion euros (approximately 63.806 billion yuan), mainly due to significant increases in revenue from its two business units, "Offshore and Special Ships" and "Systems, Components, and Infrastructure", with growth rates of 28% and 36%, respectively.
Fincantieri's profitability also saw significant growth last year, with its earnings before interest, tax, depreciation, and amortization (EBITDA) reaching 509 million euros (approximately 3.996 billion yuan), a year-on-year increase of 28%. The EBITDA profit margin increased from 5.2% in 2023 to 6.3%. The net profit for the whole year was 27 million euros (approximately 212 million yuan), while the net loss for 2023 was 53 million euros.
According to financial report data, Fincantieri's shipbuilding business revenue was 5.99 billion euros (approximately 47.022 billion yuan) last year, a decrease of 2.3% compared to 2023. Among them, the revenue from cruise business decreased from 4.014 billion euros in 2023 to 3.913 billion euros, accounting for 44% of the group's total revenue (48% in 2023); The revenue from the shipbuilding business decreased from 2.06 billion euros to 2.015 billion euros, accounting for 23% of the group's revenue (25% in 2023).
Last year, Fincantieri's shipbuilding business EBITDA was 396 million euros (approximately 3.109 billion yuan), an increase of 7.8% compared to 367 million euros in 2023, and the BITDA profit margin increased from 6.0% in 2023 to 6.6%.
At the same time, Fincantieri's offshore and specialty vessel business revenue in 2024 was 1.371 billion euros, a significant increase of 28% compared to 1.07 billion euros in 2023. EBITDA increased by 28% from 52 million euros in 2023 to 67 million euros. BITDA profit margin remains at 4.9%.
Fincantieri pointed out that the number of new orders received in 2024 set a new record, with a total amount of 15.4 billion euros (approximately 120.892 billion yuan), more than double the total number of orders received in 2023. This is mainly due to the outstanding performance of Fincantieri's shipbuilding business, with a total order volume of 13.194 billion euros (approximately 103.574 billion yuan) in 2024, an increase of more than three times compared to 2023.
The growth of Fincantieri's order volume is closely related to the recovery of the cruise market. Last April, Fincantieri signed a total of 8 new generation cruise ship orders with cruise giant Norwegian Cruise Holdings. This is the largest new shipbuilding plan of Norwegian Cruise Holdings since its establishment, including 4 200000-ton luxury cruise ships ordered for the Norwegian Cruise brand, 4 86000-ton cruise ships ordered for the Oceania Cruises brand, and 2 77000-ton cruise ships ordered for the Regent Seven Seas Cruises brand.
Last July, Fincantieri signed an agreement with Carnival Corporation to build three 230000-ton LNG dual-fuel luxury cruise ships. These are the largest cruise ships ever built by Fincantieri and will be delivered gradually before 2033.
In addition, Fincantieri also received orders for three high-end cruise ships with a total tonnage of 61800 from Crystal Cruises last year, which will be delivered starting from 2028; And orders for 4+4 small cruise ships from Viking Cruises, with the first 4 to be delivered between 2028 and 2030, and alternative orders confirmed to take effect between 2031 and 2032.
It is worth mentioning that in February this year, the order for four 200000-ton luxury cruise ships from Norwegian Cruise Line officially came into effect. These four 226000-ton cruise ships will be built by Fincantieri's shipyard in Monfalcone. The first ship is expected to be delivered in 2030, and the following three ships will be delivered in 2032, 2034, and 2036 respectively. According to Reuters, the total value of this order was as high as 9 billion euros (approximately 68.121 billion yuan).
In addition to cruise ship orders, in 2024, Fincantieri's Norwegian subsidiary VARD also undertook design and construction contracts for 8 wind farm commissioning service operation vessels (CSOVs), 2 ocean energy construction vessels (OECVs), 1 energy construction vessel (ECV), 5 walk-to-work vessels, and 1 fishing vessel in the offshore and specialty vessel fields, with a total order amount of 1.555 billion euros (approximately 12.207 billion yuan).
As of December 31, 2024, Fincantieri holds orders totaling 51.2 billion euros (approximately 401.926 billion yuan), which is about 6.3 times of its revenue in 2024. Among them, 98 vessels worth 31 billion euros have been confirmed as held orders, and there are also 20.2 billion euros of alternative orders with a delivery date scheduled for 2033.
Fincantieri stated that driven by positive macro trends in the cruise tourism market, geopolitical developments driving by defense spending, and growing demand for offshore energy development, including wind and oil and gas, the business areas in which Fincantieri operates show significant growth prospects.
Fincantieri is the market leader in the cruise industry, which is currently experiencing accelerated growth. Major cruise ship owners have reported that booking volumes, cruise ticket prices, onboard revenue, and profitability are all showing positive trends beyond expectations. The International Cruise Association (CLIA) predicts that the global number of cruise passengers will reach 39.7 million by 2027, further increasing to approximately 48.5 million by 2032, with an average annual compound growth rate of 4.3% from 2024 to 2032. While the market performance is strong, the demand for new shipbuilding of various types of cruise ships is also fully recovering. The introduction of new environmental regulations has accelerated the process of fleet renewal, and cruise companies are restarting long-term investments.
In the offshore market, although the development speed of offshore wind power is slower than expected, renewable energy remains the main growth driver in this field. There is strong demand for specialized vessels such as CSOV and SOV, with 20 new orders globally in 2024. Among them, VARD has undertaken 8 vessels, with a market share of about one-third, continuing to maintain its leading position.
In 2024, with the growth of energy demand, new market opportunities continue to emerge, driving an increase in investment in the oil and gas industry. This trend is expected to continue in the coming years, with a growing demand for highly flexible vessels (MSV, OECV, ECV) designed specifically for construction and maintenance activities (including subsea operations) that can support offshore wind and oil and gas projects. VARD seized these opportunities and received 8 out of 21 global orders for innovative hybrid ships.