The Italian Sea Group (TISG) H1 2024 earnings summary

Executive summary

• Revenues reached €189.4 million in H1 2024, up 14.2% year-over-year, with EBITDA at €32.4 million, up 19% and a margin of 17.1% on revenues.

• Net profit more than doubled to €29.0 million, representing 15.3% of revenues for the period.

• Order backlog stood at €1.323 billion as of June 30, 2024, up 4.7% from December 2023, reflecting strong demand.

• Net financial debt was €33.6 million, reflecting dividend payments, capex, and proceeds from asset disposals.

• 2024 guidance and 2025 outlook reaffirmed; STAR segment admission enhances market visibility.

Financial highlights

• Shipbuilding revenues grew 20.1% year-over-year to €167 million, while refit revenues remained stable at €23 million.

• EBITDA margin improved to 17.1% from 16.4% in H1 2023, supported by cost management and production mix.

• EBIT margin rose to 14.2% in H1 2024 from 13.1% in H1 2023.

• Net working capital increased to €17.8 million, mainly due to project development and marketing initiatives.

• Cash flow from operations was negative at €-30.5 million, reflecting working capital investments; closing cash at €40.3 million.

Outlook and guidance

• 2024 guidance confirmed: revenues between €400–420 million and EBITDA margin of 17.0–17.5%.

• 2025 outlook: revenues expected at €430–450 million with EBITDA margin rising to 18.0–18.5%.

• Focus remains on yachts over 50m, a resilient market segment with strong UHNW client growth.

• Dividend policy targets distribution of 40–60% of net profit annually, subject to M&A and capex strategy.

• Financial leverage to remain neutral, capped at 1.5x LTM EBITDA.