Ferretti (YACHT) Q3 2024 earnings summary

Executive summary

• Revenue for 9M'24 increased by 3.8% to €865.3 million, driven by a solid order backlog and recovery in the composite segment.

• Adjusted EBITDA rose 10.7% year-over-year to €138.2 million, with margin at a record 16%.

• Net profit reached €62.2 million, stable year-over-year, reflecting the end of a tax asset benefit.

• Order backlog decreased 9.9% to €1,326.3 million, but with post-quarter orders, current backlog is about €1.6 billion.

• Continued investment in innovation, sustainability, and expansion, including the new Ravenna shipyard.

Financial highlights

• Order intake for 9M'24 was €736.9 million, down 15.8% year-over-year, with nearly €300 million secured after the quarter.

• Revenue by segment: Made-to-measure Yachts up 10.6%, Composite Yachts up 20.8%, Super Yachts down 4.7%.

• Revenue by geography: Europe up 22.1%, MEA down 55.8%, APAC down 4.8%, AMAS slightly negative.

• Net financial position at €149.6 million net cash, reflecting typical Q3 production cycle and working capital build-up.

• Investment in tangible and intangible assets: €113.1 million YTD, with €90.9 million for business expansion.

Outlook and guidance

• Mid-term guidance confirmed; annual revenue guidance updated to €1,155–1,180 million for 2024 (+4.0% to +6.2%).

• Adjusted EBITDA guidance for 2024 set at €185–190 million, with margin expected at 16.0–16.1%.

• Positive outlook for Q4'24, with strong order intake and ongoing negotiations in line with last year.

• Mid-term targets: organic net revenue CAGR ~10%, adjusted EBITDA margin >18.5%, cash conversion rate >85%.