Saipem Earnings: EUR 30 Billion Backlog Supports Strong 2024 Guidance and Multiyear Targets

No-moat-rated Saipem reported a strong and positive set of 2023 financial results, which sent shares up 13% on Feb. 29. Impressively, the company met or exceeded its 2023 guidance for revenue and EBITDA. Full-year revenue increased to EUR 11.9 billion and full-year adjusted EBITDA increased to EUR 926 million from EUR 9.98 billion and EUR 595 million, respectively. Adjusted EBITDA margin grew to 7.8% in 2023 from 6.0% in 2022. Additionally, 2024 guidance of EUR 13 billion and a 10% adjusted EBITDA margin surpassed our expectations. We plan to incorporate the results and guidance into our model shortly, but at first glance we expect to maintain our EUR 2.50 fair value estimate.