The Italian Sea Group (TISG) Q3 2024 earnings summary

Executive summary

• Revenues for the first nine months of 2024 reached €292 million, up 11.4% year-over-year, with EBITDA at €50.1 million, up 16%, and a margin of 17.2%.

• Net profit rose to €37.7 million, representing a 12.9% margin on total revenues, up from 9.4% last year.

• The order book as of September 30, 2024, stands at €1.275 billion, with a net backlog of €533 million.

• Management expressed satisfaction with performance, highlighting ongoing maturity in strategic partnerships and anticipation of closing at least one sizable contract by year-end.

• Filippo Menchelli was appointed or reappointed as Chairman of the Board following a recent resignation.

Financial highlights

• Shipbuilding revenues grew 12.2% to €257 million, while refit revenues rose 5.8% to €35 million.

• EBIT reached €42.1 million, up from €35.6 million year-over-year.

• Net financial debt increased to €19.0 million, reflecting dividend payments and investments.

• Investments for the period totaled €7.2 million, focused on business expansion and production process internalization.

• Cash inflows of €21 million from the disposal of the Viareggio shipyard.

Outlook and guidance

• 2024 guidance and 2025 outlook confirmed: revenues between €400–420 million and €430–450 million, with EBITDA margins of 17.0–18.5%.

• All indicators remain in line with guidance for next year and subsequent years, regardless of contract timing.

• Any delay in contract closure is expected to shift to Q1 of next year, with no impact on future guidance.

• Ongoing negotiations for large yacht contracts expected to close by early 2025.

• Dividend policy targets distribution of 40–60% of net profit, with leverage capped at 1.5x LTM EBITDA.