Danieli builds turnkey plants for the steel industry, a sector committed to decarbonising its production.
Analysis
Despite higher net profit and a record order book, the market punished the fall in operating profit, project related costs and a more cautious outlook than expected. A backlog secures activity, but not necessarily profitability.
Opportunity
The opportunity remains the shift to low carbon steel, which requires new plants and new processes. The risk lies in executing large projects and in input costs.
Investor outlook
Neutral outlook. Order visibility is an asset, but investors will wait for evidence of margin improvement before returning.
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