As summer draws to a close and the industry gears up for the annual convergence in Monte Carlo, the financial results of some of the sector’s key players begin to surface, offering more than just a snapshot of figures. They provide a critical lens through which to assess the health and future of the superyacht market. And, as expected, the latest results from Azimut|Benetti, Sanlorenzo and The Italian Sea Group (TISG),  recently released in close succession, collectively present an ultimately positive outlook of Italian shipyards when viewed together.

However, it’s not just numbers that matter. Marco Valle, Azimut|Benetti Group CEO, explained that while the Group could manage potential challenges from a position of strength thanks to its significant order backlog, the market is experiencing a “physiological contraction” – macroeconomic and geopolitical uncertainties are causing trepidation in the market, and it is worth keeping an eye open. 

So, amid show season buzz and order books that continue to impress, the financial results hint at emerging challenges that could shape the year ahead. From stock volatility in the publicly traded firms to shifts in demand across key regions, these results offer insight into where the industry is heading, as the sector prepares to gather in Monaco next week. 

Looking at the overall financial performances of all the major Italian yards in 2024 so far, there has been steady revenue growth despite economic uncertainties. Earlier this month, the Ferretti Group posted record-breaking profits for the first half of 2024, with a net profit of €44 million, marking a 7.6 per cent increase compared to the same period in 2023. This growth was driven largely by the shipbuilder’s superyacht segment, which played a key role in the company's strong performance.

Now, Azimut|Benetti Group has posted a record €1.3 billion in revenues for its fiscal year ending 31 August 2024, up 55 per cent over the last four years. The shipyard believes this growth trajectory is expected to continue too, with the company forecasting €1.5 billion in revenues for the 2024/2025 period, its ‘strategic investments’ and high demand across multiple regions having played a central role in this sustained rise. 

For Sanlorenzo, on the other hand, revenues reached €415.1 million for the first half of 2024, marking a 6.9 per cent year-on-year increase. The superyacht (yachts between 40 and 73 metres using aluminium and steel) and Bluegame divisions led the charge, with the superyacht division seeing a 17.6 per cent increase in revenues, while the yacht division (fibreglass yachts under 36.5 metres) remained relatively stable. 

The Italian Sea Group (TISG) also demonstrated strong revenue growth, reporting €189.4 million for the first half of 2024, up 14.2 per cent compared to the same period in 2023. TISG’s shipbuilding segment, with a 20.1 per cent increase in revenues, has been the driving force behind this growth. 

And while revenue growth has been the headline story for the companies, their ability to maintain and expand profitability is equally (or arguably more) important. Azimut|Benetti reported a 30 per cent year-on-year increase in EBITDA, with the company attributing it to business growth and improved operating efficiency.

Ferretti’s adjusted EBITDA for the first half of 2024 reached €96.7 million, reflecting a 15.9 per cent increase compared to the previous year. This improvement resulted in a record EBITDA margin of 15.8 per cent, up by 110 basis points (1.1 per cent) from H1 2023.

Sanlorenzo also managed to enhance its profitability, as its EBITDA reached €74.2 million, up 9.7 per cent compared to H1 2023, and margins improved by 50 basis points to 17.9 per cent. This growth was primarily driven by the superyacht division’s success and careful operational management, with EBIT increasing by 9.1 per cent to €58.0 million.  

TISG saw its EBITDA grow by 19 per cent to €32.4 million in H1 2024, with margins expanding to 17.1 per cent. The Viaraggio-based shipyard attributes its margin expansion to tighter cost control, efficiency improvements and the internalisation of high-value-added production processes. 

The substantial order backlogs of all three companies are also a key indicator of their future revenue potential and their ability to weather future market uncertainties. Azimut|Benetti reported a €2.6 billion backlog, which stretches through 2029, ensuring strong visibility into future revenues and helping the group maintain double-digit growth for the coming years.  

Sanlorenzo reported a net backlog of €950 million as of June 2024, providing more than a year’s worth of revenues, although slightly reduced from earlier in the year due to seasonal deliveries. Similarly, TISG announced a backlog of €1.3 billion in H1 2024, reflecting a 4.7 per cent increase compared to the end of 2023.  Ferretti’s entire order backlog as of 30 June 2024 stands at €1.5 billion, however, a 6.0 per cent increase from the previous year.

While the overall trend for these companies remains positive, it is worth noting that regional markets are playing a key role in shaping their financial outcomes. Geographic trends reveal that the Americas and the Middle East & Africa (MEA) are emerging as promising regions for these yacht builders, while Europe and Asia-Pacific (APAC) face more mixed performances, with the former still maintaining the largest proportion of buyers. 

Europe now accounts for 51.2 per cent of Ferretti’s total new build revenue and generated €313.0 million in sales– an increase of 17.9 per cent from the previous year. The Middle East and Africa (MEA) region also saw substantial growth, with revenues rising by 27.5 per cent to €112.8 million, comprising 18.5 per cent of the Group’s total revenue.

Azimut|Benetti reported its order backlog distributed equally across Europe (40 per cent), the Americas (37 per cent) and MEA/APAC (23 per cent), showcasing a balanced demand from all corners of the world. For Sanlorenzo, the MEA region stood out with a 142 per cent increase in revenues. The Americas also performed well, recording 9.2 per cent growth, signalling a strong recovery after a slow 2023. TISG saw its strongest growth in the Americas, with revenues increasing by a whopping 170 per cent in H1 2024.  

However, Sanlorenzo reported a 9.9 per cent decline in revenues from Europe for H1 2024, a concerning development given that Europe has historically been a strong market. However, this contraction follows an exceptionally robust performance in H1 2023, creating a tough year-on-year comparison.  

According to Sanlorenzo, the economic slowdown in Germany, one of its key markets, has played a significant role in this contraction, signalling broader challenges in European demand (Ferretti’s also saw a significant 39.1 per cent decline in European new orders from in H1). Similarly, The Italian Sea Group (TISG) saw a sharp 44 per cent decline in revenues from the APAC region in H1 2024.  

Sanlorenzo also noted a significant increase in its inventories, totalling €130.1 million by June 2024, up €44.6 million from the end of 2023. While this inventory build-up can reflect a growing order backlog, it also points to potential risks if market demand slows. If demand from regions like Europe continues to soften, this could affect the company’s ability to move inventory quickly, especially given the market contraction that Azimut|Benetti has already flagged. 

TISG’s net debt rose to €33.6 million by June 2024, up from just €1.5 million at the end of 2023. This increase is tied to capital investments and dividend payouts, but rising debt can pose a risk if the market softens and cash flow from new orders does not materialise as expected. While manageable in the short term, a sustained economic downturn could amplify these risks. 

Ferretti is also grappling with rising costs across multiple areas, which could pressure its margins. Spending on raw materials and consumables increased by €17.2 million compared to H1 2023, likely due to inflationary pressures. The costs for external contractors rose by €28.9 million too, further contributing to the overall rise in operational expenses.

These complications are likely to have played a factor in the stock exchange too. Over the first half of 2024, Sanlorenzo’s stock performance has shown notable fluctuations. From January to June 2024, Sanlorenzo’s stock price fell by around 19.13 per cent. The share price peaked at €46.30 in May 2024, before steadily declining to around €34.55 by September, marking a 5.2 per cent decline in the share price at the start of the year’s second half.

TISG experienced notable volatility on the trading floor during the first half of 2024 too. The company’s stock price took a significant hit, declining by 22.55 per cent. The drop was sharp, with the stock falling from a high of €11.28 to around €7.70 by mid-year. Ferretti’s stock saw sizeable fluctuations too. After reaching a high of €29.80 in February, it declined to €20.25 by early August, marking a 15.44 per cent drop over the period, although the stock recovered slightly by early September, trading at a higher level.

Nevertheless, with strong backlogs and ultimately solid financial performances, these shipyards are aggressively investing in their future, focusing on expanding production capacity and innovating through sustainable technologies. Azimut|Benetti has launched a €160 million investment plan for the 2025-2027 period.  

Of this, €99.3 million will be used to expand production capacity across its shipyards to meet growing demand, while €43.2 million is allocated to R&D for developing more technologically advanced and environmentally sustainable yachts. Another €13.9 million will be directed toward digital transformation projects, including virtual reality solutions for design and customer engagement. 

Sanlorenzo has committed to €33.1 million in capital expenditures for H1 2024, with the bulk going toward expanding its industrial capacity and developing new models. The company is also leading the charge in sustainability, introducing projects like the 50Steel, which features cutting-edge green technologies such as green methanol for powering on-board systems. 

TISG continues to invest in its internal production capabilities, having spent €5 million in H1 2024 to expand its Marina di Carrara headquarters and internalise high-value production processes. All three companies claim to have placed sustainability at the core of their future strategies, acknowledging both regulatory pressures and the growing demand for environmentally conscious technologies and services. 

Ferretti is also continuing to invest heavily in its future growth. The Group recently expanded its production capacity by acquiring additional land adjacent to its San Vitale shipyard, bringing the total production area in Ravenna to around 100,000 sqm. This expansion is expected to support increased production in the made-to-measure, composite and sail segments under the Ferretti Yachts and Wally brands.

As the industry prepares to wrap up a strong year, the upcoming Monaco Yacht Show marks another opportunity for Azimut|Benetti, Sanlorenzo, Ferretti and TISG to reinforce their positions as shipbuilding leaders. With the three shipyards showcasing their latest advances and securing attention from buyers worldwide, we can expect the positive momentum built over the past six months to continue. And after a year of steady growth, despite some regional and economic challenges, the foundations are strong, with the latest developments from the yards likely to translate into further demand.  

Given the substantial order backlogs already in place and a successful show season, MYS could serve as a catalyst for even stronger results by the end of 2024. As we look to the year’s second half, gauging the momentum generated at Monaco at the end of the year will serve as a pulse check for the industry, which, despite certain macroeconomic headwinds, appears healthy and ready for the years ahead. 

Editor’s note:

At the Monaco Yacht Show, Azimut|Benetti will showcase its Seadeck 7 from its Seadeck series, featuring hybrid-electric technology that reportedly reduces CO2 emissions by up to 40 per cent.   

Ferretti Group will showcase the Custom Line 50, a 50-metre all-aluminium yacht and the Wallywind110, a carbon fibre performance cruiser, both making their world premieres. The group will also present models like the Pershing GTX116 and the Custom Line Navetta 38.

Sanlorenzo on the other hand will present its signature 50Steel model, one of the more widely documented vessels in sustainable yacht design, powered by “green methanol” technology. The shipyard will also feature other models from its Superyacht and Bluegame divisions.  

TISG will introduce four new projects under its Tecnomar and Admiral brands, including the ambitious 80-metre Sea Flower concept, developed in collaboration with Luca Dini and Studio Fuksas.  

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