Two sources with knowledge of the matter have confirmed that Fincantieri, an Italian company, is set to hire Eugenio Santagata to lead its defence division. He was previously a top executive in Telecom Italia’s cybersecurity unit Telsy and a former military official.

The shipbuilder works to position its submarine and defence businesses to take advantage of the huge increase in European military expenditures.

Sources said that only weeks after being appointed to the top of the state-controlled firm, Pierroberto Folgiero began a formal search to find a successor for Dario Deste. The general manager of naval vessels division is retiring on August 31.

Fincantieri e Telecom Italia declined to comment.

Santagata was a captain of the Italian Army and has been TIM’s chief security and public affairs officer since 2022. Fincantieri evaluated both internal and external candidates in its search, according to one source.

Sources, who spoke on condition of anonymity, said that Santagata is supported in his bid by the Italian Government, which owns more than 70% of Fincantieri.

The shipbuilder's industrial plan will be updated by the end the year and projects that the naval division, which accounted for 20% of revenues in 2024, will increase to 30% in 2027, from 20%. Profit margins are also expected to rise.

As geopolitical tensions increase defence spending, analysts expect this forecast to improve.

In a recent report by Mediobanca, Fincantieri was referred to as "the forecasts are primarily driven by growth within the Naval segment. This is supported by export opportunities throughout Europe, Saudi Arabia and Far East."

Folgiero told Corriere della Sera, an Italian newspaper, that the group was also in a good position to quickly increase its production capacity because it produces both civil and naval ships. Reporting by Elvira pollina from Milan and Giulia segmentreti from Rome. Mark Potter is the editor.

(source: Reuters)