Fincantieri reported a decline in traditional shipbuilding revenue in the first quarter, but that was offset by a surge in income from its offshore and specialised vessel business, as well as growth in equipment and systems.

The Italian shipbuilder has reported stable total revenue of €1.77bn ($1.91bn), a 0.2% increase on the first three months of 2023.

The company delivered Ebtida of €100m during the period, a 16% increase on €87m during the same period of last year. Ebitda margins grew to 5.7% in the quarter, compared with 4.9% a year earlier.

Fincantieri does not report bottom-line net income in the quarterly figures.

“We are very satisfied with the results achieved in the first quarter of 2024, which confirm and strengthen the excellent economic, financial and commercial performance delivered last year,” chief executive Pierroberto Folgiero said in an earnings release.

He pointed to robust civil and military demand, particularly in the South East Asian defence market, as well as a strategic shift towards the underwater and naval defence sectors with the recent acquisition of Underwater Armament Systems from Leonardo.

“The strategic focus on the digitalisation of the ship as a system and the reduction of emissions continues, leading to the industrialisation of solutions which are both distinctive for our offer and highly innovative for our customers,” he said.

Fincantieri’s traditional shipbuilding revenue slid by 6.2% to reach €1.34bn in the first quarter, but offshore and specialised vessel revenue rose 25.7% to €299m. The offshore and specialised segment includes vessels for the oil, gas and renewable energy sectors.

Equipment, systems and infrastructure revenue gained by 5% to reach €278m in the period.

The company took in €539m worth of new orders, which represented a decline from €909m a year earlier but did not include Underwater Armament Systems’ €1.18bn contract with Indonesia for a pair of patrol vessels.

Fincantieri finished the quarter with a total backlog of €39.3bn, including firm and soft orders, representing an increase from €34.8bn at the end of 2023.