Ferretti (YACHT) H1 2024 earnings summary

Executive summary

• Net revenue for H1 2024 rose 11.3% year-over-year to €646.4 million, driven by strong demand across yacht segments and a robust order backlog of €1,495.8 million, up 6.0% from the prior year.

• Adjusted EBITDA increased 15.9% to €96.7 million, with margin improving to 15.8% (up 110 bps), and net profit grew 7.6% to €44.0 million, maintaining a stable net profit margin of 7.2%.

• Growth was led by composite, made-to-measure, and super yachts, while revenue from other businesses declined 12.6%.

• Strategic investments included a €14 million expansion of the Ravenna shipyard, increasing production capacity by 10%, and notable product launches and partnerships, such as with Flexjet, Bang & Olufsen, and Officina Italiana Design.

• Confirmed annual and mid-term guidance, targeting €1,220–1,240 million revenue and €195–200 million adjusted EBITDA for 2024, with a mid-term target of approximately 10% organic CAGR.

Financial highlights

• Net revenue: €646.4 million (+11.3% YoY); adjusted EBITDA: €96.7 million (+15.9% YoY); net profit: €44.0 million (+7.6% YoY); adjusted EBITDA margin: 15.8% (up from 14.7%).

• Order intake for H1 2024 was €514 million, down 10.4% year-over-year, but Q2 2024 showed signs of a new growth trend.

• Net financial position as of June 30, 2024, was €237.0 million in net cash; cash and cash equivalents: €273.7 million.

• Dividend of €32.8 million (€0.097/share) paid in June 2024.

• Capital expenditure totaled €90.5 million, mainly for Ravenna shipyard expansion and maintenance.

Outlook and guidance

• 2024 revenue guidance confirmed at €1,220–1,240 million, with adjusted EBITDA expected at €195–200 million and margin expected to reach 16.0–16.1%.

• Management expects continued growth in H2 2024, supported by a strong order backlog and ongoing investments in innovation and sustainability.

• Strategic focus remains on expanding product mix, entering new high-growth segments, and enhancing ESG leadership.

• Focus on high-growth and high-margin segments, including larger alloy yachts and super yachts.

• Industry outlook remains positive, with continued resilience and growth expected in the global luxury yacht market.