Sanlorenzo (SL) Q2 2024 earnings summary

Executive summary

• H1 2024 net revenues from new yachts rose 6.9% year-over-year to €415.1–450.1 million, with strong growth in Superyacht (+17.6%) and Bluegame (+13.1%) divisions, while Yacht division remained stable.

• Group net profit increased 11.6% year-over-year to €43.6–43.7 million, with EBITDA up 9.7% to €74.2 million and EBIT up 9.1% to €58.0 million, reflecting margin expansion at all levels.

• Backlog remains robust at €950 million to nearly €1.4 billion, providing high visibility on future revenues, with 80–88% sold to final clients and deliveries scheduled up to 2028.

• Expansion in direct distribution in Europe and APAC, including Simpson Marine acquisition and new offices in Australia and Vietnam.

• Acquisition of Nautor Swan completed, with integration underway and initial results showing double-digit EBITDA margin; phased closing for 100% by April 2028.

Financial highlights

• Net revenues from new yachts: €415.1 million (+6.9% YoY); EBITDA: €74.2 million (+9.7% YoY, 17.9% margin); EBIT: €58.0 million (+9.1% YoY, 14.0% margin); Group net profit: €43.6 million (+11.6% YoY, 10.5% margin).

• Net financial position at €102.2 million net cash as of June 30, 2024, after €34–38 million dividend payout and Simpson Marine acquisition.

• Organic CapEx at €20.5 million (4.9% of revenues), with total investments at €33.1 million including Simpson Marine.

• Net working capital neutral to slightly positive, reflecting seasonality and M&A impact.

• Operating costs increased 8.5% year-over-year, in line with revenue growth.

Outlook and guidance

• FY 2024 organic guidance confirmed: net revenues from new yachts expected at €880–910 million (+7% YoY), EBITDA at €135–176 million (15.3–17.9% margin), and group net profit at €99–101 million (+8% YoY).

• Swan acquisition to contribute €35–40 million in revenues and €4–5 million in EBITDA for 2024 (five months' impact).

• Capex for 2024 guided at €48–50 million, with net cash position expected at €160–170 million by year-end, excluding M&A.

• Backlog remains robust at nearly €1.4 billion, providing strong visibility into 2025 and beyond.

• Order intake normalizing post-pandemic, with high-quality backlog and stable Superyacht demand.