Earnings call transcript: Ferretti Q3 2025 sees revenue growth, market expansion

In its third-quarter earnings call, Ferretti Group reported a 2.5% increase in revenues to €887 million, alongside a 2.5% growth in EBITDA to €142 million. The company highlighted robust order intake and a strategic focus on the luxury segment. Ferretti’s stock showed a positive movement, with a 1.44% increase, closing at €25.02. According to InvestingPro data, the company maintains strong financial health with an overall score of "GOOD" and trades with notably low price volatility (Beta: 0.49), making it an attractive option for stability-focused investors.

Key Takeaways

• Revenues rose by 2.5% to €887 million.
• EBITDA increased to €142 million, maintaining a growth trajectory.
• Order intake grew by 4.6%, reaching €771 million.
• Production capacity utilization decreased to 80%.
• Strong performance expected in U.S. and Middle East markets.

Company Performance

Ferretti Group demonstrated resilience in the third quarter of 2025, with revenues climbing by 2.5% to €887 million compared to the previous year. The company’s strategic focus on the luxury segment and innovative product launches contributed to this growth. Despite a reduction in production capacity utilization from 97% to 80%, Ferretti maintained robust financial performance, driven by increased order intake and a strong backlog. InvestingPro analysis reveals the company’s strong market position with a P/E ratio of 10.38 and impressive year-over-year revenue growth of 3.52%. For deeper insights into Ferretti’s valuation and growth prospects, investors can access comprehensive Pro Research Reports available on InvestingPro, covering over 1,400 top stocks.

Financial Highlights

• Revenue: €887 million, up 2.5% year-over-year.
• EBITDA: €142 million, reflecting a 2.5% increase.
• Order intake: €771 million, a 4.6% rise.
• Net backlog: €795 million, increasing by 4.5%.

Outlook & Guidance

Ferretti expects full-year net revenues to range between €1,221 million and €1,240 million, with adjusted EBITDA guidance set at €201 million to €207 million, targeting a 16.5% margin. The company is optimistic about its performance in the U.S. and Middle East markets and is exploring expansion opportunities in the Asia Pacific region, particularly in Indonesia and Malaysia. Additionally, Ferretti is in due diligence for potential mergers and acquisitions. The company’s market capitalization stands at $1.09 billion, with its stock trading near its 52-week high, reflecting strong investor confidence in its growth strategy. InvestingPro subscribers can access additional insights through exclusive ProTips and detailed financial metrics to better understand Ferretti’s market position and growth potential.

Executive Commentary

CEO Alberto Galassi emphasized the company’s strategic positioning, stating, "The market is back where we wanted the market to be, back in the most profitable segment." He also highlighted the importance of agility in the industry: "Not the big fish that eats the small one, it is the fast fish that eats the slow one."

Risks and Challenges

• Competitive discounting pressures could impact margins.
• Currency fluctuations, particularly the U.S. dollar weakness, may affect pricing strategies.
• Supply chain disruptions could pose challenges to production schedules.
• Market saturation in certain regions could limit growth opportunities.
• Macroeconomic pressures, including inflation, could affect consumer spending in the luxury segment.

Ferretti Group’s third-quarter results reflect a strategic focus on the luxury segment and a commitment to innovation. With a positive outlook and strong market presence, the company is well-positioned to navigate potential challenges and capitalize on growth opportunities.

Full transcript - Ferretti SpA (9638) Q3 2025:

Margherita Sacerdoti, Head of Investor Relations and Sustainability, Ferretti Group: Good afternoon everyone and welcome to the Ferretti Group first nine months 2025 results webinar. Thank you all for joining us. We appreciate your time and interest in Ferretti Group as we share an overview of our performance over the past nine months and discuss the outlook for the future. Before we begin, let me introduce our speakers. Mr. Alberto Galassi, Chief Executive Officer, Mr. Marco Zamarchi, Chief Financial Officer, and myself, Margherita Sacerdoti, Head of Investor Relations and Sustainability. Today’s agenda will cover the key highlights for the nine months, business dynamics, financial results, and final remarks followed by a Q&A session. Throughout the webinar, you may submit your written questions using the Q&A function in the Zoom menu. We will address as many as possible at the end of the presentation. You can also ask live questions by using the raise your hand feature in the Zoom platform.

With that, let me hand it over to Mr. Alberto Galassi to get us started. Mr. Galassi, the floor is yours.

Alberto Galassi, Chief Executive Officer, Ferretti Group: Buongiorno. Good afternoon everybody. I’m very pleased to highlight a very strong positive momentum for Ferretti Group. We have been experiencing incredible results and the sharp increase in the order intake in the net backlog is the outcome of it. We start from the order intake to €771 million, 4.6% higher than the first nine months of 2024. The net backlog of the company increased by 4.5%, €795 million versus the €761 million of the previous quarter that ended at the first half, I would say the 30th of June of 2025. The revenues of the company increased by 2.5%, €887 million versus the €863 million of the previous nine months. Interesting enough, also the EBITDA increased, €142 million with 2.5%. What is driving this? I would say outstanding results. First of all, let’s put things in the context. The market is not going at the speed.

The market is actually a two speed market. We had an increased attendance in the boat show seasons and the private preview that Ferretti Group does every year. You have to remember that Ferretti Group every year, at the beginning of the month of September in Monaco, privatizes the yacht club with 26-27 berths and invites the most important clients and prospects from all over the world. This year we had an incredible attendance of 960 guests coming from all over the world with plus 14% versus previous years. The trend is confirmed also in Cannes, where in Cannes boat show we had 6% plus of attendees. Of course, it is less than Monaco, because if they come to the private yacht show of Ferretti Group, there’s no need to come to Cannes.

We had 35% more attendances in the Monaco show, which is for the made to measure and superyacht size, from 30 meters up to the maximum size the Ferretti Group manufactures today, which is 95 meters. Also, Genova, the Italian boat show, increased by 12% of our attendances in our event. In the quarter we had 36% more order intake versus the same quarter of previous year. We had €304 million of orders. Considering that not a single superyacht has been sold in this quarter, the number is outstanding. It really shows that the market is back to stability. It shows that the uncertainty that drove the first. As we always knew, the uncertain wealth is there. Wealth doesn’t disappear from the planet. We sell in 71 countries and wealth is not finished. On the contrary, in some areas of the world it is increasing.

What happened was the uncertainty driven by the tariffs, the uncertainty driven by the combination of wars in the Middle East, of continuing the tension and war in Ukraine. That uncertainty drove all our clients, no matter which kind of industry, which kind of business they were in, they were focused on the core activities of their investments, of their life, and they were not diverting their attention to the boating industry. Now that things are stabilized and we have things more under control in the U.S., now we’re stabilized with the 16.5% tariffs and anyone took the measures on the potential threat and impact on the industry and their business back not to normal, but back to, I would say, a certain way of managing the possible threat and menace. The market is back. The market is back. Basically, where we invested.

The market is back where we wanted the market to be, back in the most profitable segment of our industry, which is the made to measure. Let me remind for the new investors, made to measure is from 30 to 45 meters in fiberglass. That segment itself increased by 32% in the nine months of this year and 185% versus the previous quarter. We are talking about the magnitude where this segment plays a role around. We will deep dive into these numbers. Just to give you a little bit of flavor, it represents 55% of our portfolio. What about the negotiations? We’re still waiting for the big American season that starts in Fort Lauderdale on October 29 up to November 2, and we’re waiting for the Asia Pacific season that starts in Hong Kong December 4. In November, in Australia—sorry, Australia will be before.

We have pending negotiations for €430 million without the American season and without the Asia Pacific Boat Show. Last year, if you compare apples with apples, we were at €290 million. What is Ferretti Group giving? Which kind of message are we giving in general to the investors, to our stakeholders? I gave it to my board today. In a market where the small is not selling unless you have a top brand, in a market where we are facing a lot of discounts from the competitors expressly and especially from UK manufacturers, I do understand it because they do manufacture in pound, they buy components in euro and they sell in dollars. I understand they’re struggling even in this context, in this complicated scenario.

Ferretti Group is positioned thanks to the brand, thanks to the size, thanks to the design of being exactly where we are with the CapEx cycle investments that we have done in the position when the market is back and freed from uncertainties, is calling us, is ringing our bell. Thank you for your attention and let’s go and see what we’ve done as business dynamics. We splashed three important products. One is a range update of an existing model, the Ferretti 800. We splashed the brand new Riva 54 that starts the new era, the new era of Itama. We will have three new versions coming in the next four years. The 800 we sold eight units. It’s been presented at the Monaco preview at the beginning of September. The Itama 54 we sold four.

Most important in terms of range expansion, we have the brand new Riva 54 meters and we sold four units. The Riva 54 meters is priced at €41.7 million. This is the first one that goes to Middle East. Three more are already sold and the manufacturing. The delivery date of the next available one is 2028. In the third quarter, we also announced three other products which are not already in the water. One is a range expansion, the Riva Caravelle 42 meters. It’s the biggest Riva in fiberglass displacement yacht. It’s the beginner of a new family of products. It’s a displacement yacht that brings a Riva into the segment in a lower price range than the Riva 50 before. The Riva 54, the Caravelle, we sold one unit, has been sold to Middle East and it’s €24.7 million, boat without options.

This is where we are positioned now. Also, Custom Line, which is the backbone of our revenues and profit making companies. We presented the brand new Navetta 35. It’s a 15 point something million euro boat. We sold two units and the Custom Line site, we have the Navetta series, which is the displacement lines, and the site which basically is an arrow sighting glazer. It’s the planning yachts, the 128 that replaces the 120, we have two units sold and it’s a €17 million boat. I’ll give some, I step back and I’ll give some data from Margherita will explain and guide you through the market, the sales and the composition.

Margherita Sacerdoti, Head of Investor Relations and Sustainability, Ferretti Group: Thank you Mr. Galassi. Let’s have a look at our order backlog and net backlog. As Mr. Galassi just mentioned, the order backlog increased from 30 September 2024 almost 13% thanks to the incredible order intake, especially in the third quarter this year, plus 36%. Also, the net backlog increased compared just to June 2025, plus 4.5%. This is why we have good visibility over the end of the year and beyond 2025, and we are confident in confirming the guidance. Mr. Galassi, Mr. Zamarchi will give you more details going forward. Also important to highlight that we delivered 193 units in the nine months and we took 140 new units in the order. This is a confirmation of the shift we are witnessing toward larger size model, more customizable, that brings along a higher marginality.

If we look at the order intake, we see we left you in July with an order intake over the first half that was minus 9.2% and we inverted the sign. We are plus 4.6% over the nine months thanks to the incredible order intake of the third quarter that, as Mr. Galassi mentioned, doesn’t include any super yacht. Why is it so? We noticed that the clients are back, they got used to the new international environment and there is more clarity over the macroeconomic condition, more clarity over the tariffs. All these help us getting them back into negotiation and concluding the negotiation. Uncertainty is the worst enemy for us. Book to bill ratio is very high, 1.2 times when we exclude the composite segment and above 1 including composite segment. As of today, negotiations are very high compared last year, $430 million versus $290 million.

Again, this gives us good sentiment over the upcoming season in the U.S. If we look at the order intake by segment, we can see that the mix was very good. Made to measure increased 32% and only in the quarter 185. Now made to measure represents 55% of our order intake. Composite was almost in line with last year. Very important to highlight that more than half of the composite intake was above 80 ft. Again, this is the high composite and the marginality of high composite is similar to that of made to measure. If we look at the geography, we can notice that Europe was the main character of this quarter thanks to the boat show seasons. Europe performed plus 32% compared to the nine months last year and plus 89% quarter over quarter.

2024 Middle East, if we excluded the super yacht that we took last year in the third quarter, Middle East would have performed well, plus 18%. It’s a tough comparison. America was in line; again, it wasn’t the quarter of America. This gives us good sentiment over the upcoming season. Asia is still small, represents 2%. It was up 13%, but overall it’s still a small area for us. Now I’ll hand it over to Mr. Zamarchi for the revenue.

Marco Zamarchi, Chief Financial Officer, Ferretti Group: Good afternoon. Talking about revenues after the order intake that is feeding us, the revenue trend, we have an increase of 2.5% versus prior year. I remember that when we released the alpha result it was plus 1.5%. We are moving forward to our guidance that we do confirm also in consideration of the backlog that will provide additional visibility and also supported by the very high volume of negotiation in place. If we analyze this 2.5% increase versus prior year, we have also to highlight the different contribution, the different breakdown amongst the segment. In fact, now the contribution, the increase, the support provided, the metaverse increased by nearly 14% and superyacht including that include not only the full bespoke ships but also the branded superyacht. I’m referring to, for example, the Riva 54 that Mr. Galassi mentioned before, generating an increase of 33%.

We believe that the branded superyacht will continue to feed our revenue trend in the future. In terms of profitability, we have the same increase as per the revenue, so 2.5%, reaching €142 million versus the €138 million of prior year. We are not at the moment closer to our guidance, but we elaborate how we expect to meet such guidance. First of all, we are experiencing a lot of pressure, aggressive pressure from many competitors, especially in the composite segment. We have some example, some sample of competitors that are discounting 40, 45% versus the list price. We decide not to follow them because it’s a suicide move, but for sure to provide some additional discount in order to maintain our market share. This is quite important.

On the other hand, we have already implemented and now is already for four months that we have implemented some cost saving initiative, especially in industrial overhead area. That means the fixed cost of operation. Also in terms of SG&A, especially in marketing, because we decided to skip some minor boat show, they do not provide a lot of support to our revenue generation. Also waiting for the American season that usually provides higher marginality, we believe that the guidance that we provide in terms of EBITDA of 16.5% is still our target. Moving to the CapEx, the CapEx of the first nine months of this year was €64 million. We are in line and we confirm our guidance to be below €90 million of CapEx of capital spend for 2025. What we wanted to remind is that we also believe that having.

We believe that in 2025 we close our second CapEx cycle. We think that from 2026 onward, our need, without including any M&A activity, our need of capital expenditure will be around 5.6% on total revenues. Also, in consideration that the second CapEx cycle was driven by our necessity to increase production capacity, and with Ravenna we fulfill this target. Now the production capacity, the production utilization of our shipyard that at the beginning was 97%, I mean, I’m talking about 2024, now is 80%. In a nutshell, we have now enough space to continue to grow our revenues. For example, in Ravenna we will go to produce larger size boats like the Riva Caravelle that we presented before. We have made enough space, enough facility to continue to grow without spending more money in capital expenditure.

In terms of net financial position, the net financial position is still positive, €65 million, with a net working capital at 15.9%. Trying to elaborate a little bit about this figure, usually the third quarter is a quarter that in our industry absorbs cash because we have to build up inventory not only for the American season, but also for larger boats for the European season. We wanted to remind that last year in the same quarter the absorption was €87 million, and we are managing very carefully our finished goods inventory and also the need for the composite season for the U.S. What we expect for the end of the year is to be back over €100 million in terms of net financial position in consideration of the order intake, the release of inventory, especially for the U.S. market. We should be quite happy of this target.

I leave to Mr. Galassi the final remarks, so please go.

Alberto Galassi, Chief Executive Officer, Ferretti Group: I give you a little bit of market outlook and final remarks. Our strength, the seven brands, our strength, the 70 countries where we sell, we also have a range of boats from 8 to 95 meters. There is no crisis in luxury. Super top brands like Wally, they like Riva, and we’re not premium. We are really talking about luxury here. We have a different regional momentum globally that enable us to catch opportunities worldwide. The most important thing you’ve seen in the fluctuation of our numbers quarter by quarter. You see there’s some kind of compensation from regions and others. I remember when Margherita mentioned before that the first half results we were, I would say, minus 9.2% in the order intake. I remember that I kept saying to the audience, listen, it’s just basically talking about three yachts, three made to measure yachts are making the difference.

The three made to measure yachts became many, many more in the quarter. That’s the nature of our business. Where we do play, where we do compete. One sale can play a difference quarter to quarter. On the overall the picture is always a positive one. What we are saying is that we are positioned where the competition is less furious, as Marco said. I received a contract last night from a dealer that imports British ships in the U.S. and it was offering 45% to the end user, to the client. You cannot survive. There’s no chance you can survive in this business if you offer 45% discount to the client. That segment is not the segment we are in. We can compete sometimes, but we leave the negotiation because we are focused in a different, are in a different scenario.

We are an increased presence where the most profitable segment is from above 80 ft, 24 meters. We have a very good visibility above and after 2025, as Margherita said, 55% of our order intake is in the made to measure segment. It was 44% in the previous nine months of last year. More than 50% of the new orders that we are referring to are coming in this segment from 24 meters up. How is it possible? Because we made investments in CapEx. The CapEx plan is finished and it will go below guidance and we will have free cash flow generation out of it. If we didn’t make the investment in Ravenna there was no space to manufacture the Caravelle.

If we didn’t invest in expansion of Mondolfo on the Adriatic coast where the Pershings are built, there’s no chance to increase the new Custom Line site alignment planning boats 106 and 125, 128. That is driven by design. Now what’s the future outlook? There’s a number that makes me very confident. If I compare the negotiations that the company had in the previous last year at this date, we were €290 million of negotiation and we’ve seen the year that we achieved this year. Now we are at €430 million. We have very good visibility and the American season is yet to come. You know, the U.S. market pays more in our price list. We do control, we do import ourselves. We are not in the hands of a distributor, of a dealer. We are the owner of our own destiny in the United States market.

We know how to manage the prices. We always have positive surprises out of America at the last quarter if there is nothing new. Our industry this year has been on off, on off, on off. Completely unpredictable because there has not been consistency in the news coming to the market. All of a sudden 100% tariffs and then zero tariffs. Let me remind you in April we moved from 1.65% to the U.S. to 15%, exactly 16.65, then 25 plus 16.65, then it was 51 days. If that is out of the picture, is out of the table. We know that the market is there, we know that wealth is there and we know that the market is appreciating our products. The guidance annual we will confirm, the net revenues without pre-owned is €1,221,240,000. Let me remind you the pre-owned expectations are around €56 million this year.

It’s 4+% at least. Adjusted EBITDA is from €201 million to €207 million. 5.8%, 8.9% the EBITDA margin, spent some time on it. 16.5% is our expectation. CapEx, I would say we’re below and we confirm that we’re below the €90 million. If there’s any question, we are all here for you. Thank you.

Margherita Sacerdoti, Head of Investor Relations and Sustainability, Ferretti Group: Thank you for listening to our first nine months 2025 presentation. We’re now ready to start the Q and A session. We will start by live question and later move on to the written question. The first question is from Adrien Duverger from Goldman Sachs. Adrien, please unmute yourself.

Adrien Duverger, Analyst, Goldman Sachs: Good afternoon, Mr. Galassi, Mr. Zamarchi and Margherita, thank you very much for taking my questions from Goldman Sachs. The first question would be if you could please comment on the consumer outlook you’re seeing in the different regions and if you can comment on the early October trends and how that compares to the third quarter, and more particularly on the progress you’ve made so far in the U.S. The second question would be on your EBITDA margin. Thank you for providing some of the building blocks with how you intend to reach the guidance for the full year. Can you also please give us some indications around how you think you can improve it further to reach your midterm guidance and maybe the different building blocks? The last question would be on the M&A pipeline and some potential acquisitions or expansion of factories.

I think you had mentioned it in your last couple of releases. Could you please give us an update? Thank you very much.

Alberto Galassi, Chief Executive Officer, Ferretti Group: Let me start with the flavor of the month of October. It’s an excellent flavor. The month of October is confirming that the negotiations that we had in place are becoming contracts. As I said, the $430 million are turning into existing contracts. Also, America is giving some good results. Middle East is giving good results. Don’t forget that we’ve been at war in Middle East for like two, three months in a row. Some markets like the Gulf area are very, very important for us. That trend of peace is helping a lot, is helping a lot our expectations. Geography wise, the only disappointment I have, and I’ll be honest with you, is in Asia Pacific because Asia Pacific is a flat trend of order intake which doesn’t reflect in our opinion the potential.

If I have to say where we are we guilty in something, I would say honestly, yes, we should do better in Asia Pacific because we are now investing in a new dealer network. We are thinking and considering to expand areas like Indonesia and Malaysia with super wealthy individuals. Indonesia is investing in marinas over there and we’ve been a little bit ignoring that part of the world. Greater China is affected by the fact that whoever wanted to buy a boat in the past history, I’ve been only here 11 years and a half, has been more likely a real estate developer. Real estate is softening a lot. Most of the boats are wearing Shenzhen are now sold to Hong Kong. There’s a new market, there’s a new kind of owner, the new kind of wealth also in Asia Pacific coming up from AI, from this new generation.

One thing you don’t have to forget, we have 44% of our order intake is coming from repeating clients. They don’t move from Ferretti Group because of the seven brands we have or because they’ve been happy with their satisfaction they had in the pleasant journey with us. The other more important thing, even more important than that, is the average age. The young generation is buying Ferretti Group. The young generation is attracted by our brands. Don’t underestimate the power of brands. Brands are the game changer. Design and brands are the game changer. They need to be beautiful. The new generation in Asia Pacific is looking at us. Are we attracting them? Are we approaching them in the right way? This is something that will enable us to unleash a potential in 2026.

I bet on a better result in Asia Pacific than what we have seen in 2025. 100% now on the U.S. market. I think I gave you the flavor. The boat show is coming, the season is coming. So far the news are good news, but the competition is insane. In some competitive environment like the composite, where you don’t have to play with a super brand, but you play with the top premium brand like Ferretti Yacht, you have competitors discounting 35%, 40%, 45%. You have two options. Either you play the game, which we don’t, or we decide to diversify our production to other areas and not to have the boats waiting for the war of discounts.

You have to be very fast. In today’s world, in my opinion at least, the lesson I learned in 2025 is not the big fish that eats the small one, it is the fast fish that eats the slow one. You need to be fast, you need to react quickly. Like an Air Force pilot, you need to be in quick reaction alert mode. This is the picture I’ve seen on the M&A. Finally, we hope to sign an exclusivity right with the potential targets that we have that are actually two and enter into due diligence process. It’s a long process, but that’s what we’re waiting for and aiming for. Again, I can’t tell you more than that, but you can see the smile on my face. Marco, on the EBITDA. Sorry.

Marco Zamarchi, Chief Financial Officer, Ferretti Group: Okay. About EBITDA, as I said, we are starting from 16% in nine months. We still believe that 16.5% at the year end is achievable. Our consideration is based on two facts that till now the effect of discounting policy is roughly 0.60% that we are planning to more than recover thanks to some cost containment, as I said before, especially in industrial overhead. Working on the fixed cost of manufacturing, on top of that we also find some opportunity in decreasing our product cost thanks to some volume discount with our main supplier. I remind you that we are the biggest customer for many, many brands, especially engines, generators, and other high value equipment. Also some cost containment measure in SG&A, especially in marketing. On top of that, we also believe that the contribution for the U.S. market because usually the U.S.

market has better contribution than the European one. The first sign that we have seen in this quarter are quite promising. Just to give you an idea, as we speak in October we have already collected more than €80 million order of which 50% are coming from the U.S. Taking into consideration all these factors, we believe that 16.5% is really achievable.

Margherita Sacerdoti, Head of Investor Relations and Sustainability, Ferretti Group: The next question is from Emanuele Gallazzi from Equite. Emanuele, go ahead.

Emanuele Gallazzi, Analyst, Equite: Can you hear me now?

Margherita Sacerdoti, Head of Investor Relations and Sustainability, Ferretti Group: Yes.

Emanuele Gallazzi, Analyst, Equite: Okay, perfect. Thank you for the presentation. Basically from my side, three questions. The first one is on the, basically when we look at the $130 million ongoing negotiation you mentioned, if I’m not wrong, $180 million already achieved in October. Can you just give us a little bit more color on the segment mix, the geographies, specifically on the ongoing negotiation? How do you see the super yacht market evolving given the fact that clearly in the third quarter you didn’t get order in the super yacht segment? The order intake was particularly strong in the third quarter if we consider the fact that no super yachts were included.

The second one is clearly on the pricing side because you clearly provide a lot of details about the current pricing, competition, and environment. I just would like to understand a little bit better about the second end market for your brands. How do you see the current offer dynamics and the pricing in the second end market? The last one is on the net working capital. Do you still expect the net working capital on sales ratio to be around 10% by year end? Thank you.

Alberto Galassi, Chief Executive Officer, Ferretti Group: Okay, thank you. Marco said 80, not 180. Maybe I misunderstood your point. Of the 430 negotiations, 80 became already orders in the month of October. Yes, including United States. It’s global. We had a sale in Asia Pacific, we had many sales in Europe, we had sales of course in Middle East. It’s a global trend. It’s a leopard skin because it’s not globally the same, but definitely it’s global. On the second end, to be honest with you, it’s not worrying us at all. Not today. Ferretti Group as an internal policy is very limited. I think we’re at the threshold of mark. How much is it? €50 million. For us it’s basically irrelevant in the big picture. We had very good results of selling trade-ins in the quarter, between June and September. That is not worrying. Don’t forget the scarcity is the driver.

We are not manufacturing 100 pieces, 100 units exactly the same. We’re not manufacturing. We delivered, to give you a number, we delivered 195 boats in nine months. They are not 195 boats exactly looking like the same, or maybe three different models with huge production. Compared, of course, in comparison to the kind of industry we are. We’re not in automotive here. The driver is scarcity. Few units divided by brands globally. You cannot have a huge amount of second end boats in the market because simply you did not manufacture them when they were new. It’s by design. We have only maybe 2 or 3 units per brand on that specific segment. That will not bring you to have a complete fallout of boats manufactured in a standard manufacturing line, as you can see in other competitors. That is a different championship.

You have to try to read the industry with two speeds. This industry is not going entirely collectively at the same speed with some competitors. The only thing we have in common is that we both manufacture things that float. All the rest is different. Marco, there was a question on the.

Marco Zamarchi, Chief Financial Officer, Ferretti Group: Yeah, okay. First of all, let me elaborate a little bit more about the orders because you mentioned Superyacht division. First of all, as Mr. Galassi said, the first available slot for the branded superyacht is 2028 and for full custom full bespoke boat is 2029. Just to give an idea now, the revenues generated by the Superyacht division is 20% and the occupancy rate of our production is 100%. We have not available slot. Maybe we also have to start thinking how to expand this segment. What we can say about it is that we are not worried because we have no additional opportunity to grow up. We are quite confident to bring some additional order by year end, at least a couple of order, one in full bespoke and one in branded superyacht. Following the working capital, yes, I agree with your conclusion.

We believe that at the year end we will be very close, if not below 10%. As I mentioned during my, when I commented this slide, it was that we expect to be over €100 million of net financial position. This will be in consideration of, as we said, we have some product already finished in the U.S. Part of them, as I mentioned before, has been sold and the same will happen also in Europe. On top of that, the constant inflow of order intake, where we require at least a 10% non-refundable deposit for every order, will contribute to these dynamics. Yes, we do confirm to be confident to reach at year end 10% ratio between net working capital and the revenues.

Emanuele Gallazzi, Analyst, Equite: Very clear. Thank you.

Marco Zamarchi, Chief Financial Officer, Ferretti Group: Thank you.

Margherita Sacerdoti, Head of Investor Relations and Sustainability, Ferretti Group: The next question is from Niccolò Guido Storer from Kepler. Please go ahead.

Niccolò Guido Storer, Analyst, Kepler: Hello, thanks for taking my question. Can you hear me?

Margherita Sacerdoti, Head of Investor Relations and Sustainability, Ferretti Group: Yes.

Niccolò Guido Storer, Analyst, Kepler: Okay, two questions please. The first one is on discounts. You said that basically you have been accommodating your clients with some more favorable pricing. I was wondering how this is accounted for. It’s basically I already see this on intake, which is, I mean, lower by this discount you are granting to your clients and then this is turned into lower revenues. Is there anything else in the accounting of this process we should be aware of? Second thing is about again working capital. In particular, comparing Q3 this year with Q3 last year. Your position, if my calculations are right, has worsened by over €100 million. Q3 last year you were already, let’s say, having on your books a good amount of finished product for the upcoming North American season, which then have not been sold.

Still, the situation seemed very similar, yet we have had such a sharp deterioration. If you can comment on the moving parts and also on your target to get to, let’s say, more than €100 million in cash at the end. I think that if you’re able to bring working capital to sales at around 10%, probably you could be well above €100 million. What am I missing here? If you get to 10%, let’s say, which is a level very similar to previous year, why should it be just a bit above €100 million, not much above €100 million, also considering that CapEx is not as high as last year, we know about dividends, etc. Thank you.

Alberto Galassi, Chief Executive Officer, Ferretti Group: On the first one on discounts, in fairness I didn’t get it properly, but I don’t know, maybe Marco got it.

Marco Zamarchi, Chief Financial Officer, Ferretti Group: No, no. Could you repeat any color, please?

Alberto Galassi, Chief Executive Officer, Ferretti Group: Nicola, the first one was a little bit difficult to understand.

Niccolò Guido Storer, Analyst, Kepler: Just as the accounting of this is working.

Alberto Galassi, Chief Executive Officer, Ferretti Group: How are they accounted, the discounts? This is question.

Niccolò Guido Storer, Analyst, Kepler: Yeah, it’s just lower revenues for you.

Marco Zamarchi, Chief Financial Officer, Ferretti Group: Yes.

Niccolò Guido Storer, Analyst, Kepler: Do you have any, I don’t know, cost line which is impacted and your accounted accounting discounts and there are higher costs? I do not know, just asking.

Marco Zamarchi, Chief Financial Officer, Ferretti Group: No, no, it’s quite simple. The selling cost of the sales price of the unit will be in this case a little bit lower. You will see it as lower revenues, lower revenues or lower intake, lower revenues, lower intake, a lower margin. Unless some volume discount that I mentioned before that we expect from the major supplier of this company.

Niccolò Guido Storer, Analyst, Kepler: Okay, okay.

Marco Zamarchi, Chief Financial Officer, Ferretti Group: Okay. On the second one. Okay, let me see. Let me be a little bit conservative. I say the over €100 million in terms of cash generation. If you compare Q3 last year, it was not that we had the same amount of finished good. We had at that time a lot of work in progress for the American market. It was in Q4 that we finished this good and were delivered on the U.S. It was two different dynamics. For example, in this moment, just to give you an idea, for the U.S. market we have some boat available, but the work in progress for the U.S. market is incredibly much lower because we also have seen that the dynamics of the U.S. market is moving in the direction of a larger boat.

Also, our effort in having some available stock for the composite, it will be much, much more reduced. Taking into consideration that the working capital of the made to measure is lower compared with the composite one, we believe that this normalization is quite possible.

Alberto Galassi, Chief Executive Officer, Ferretti Group: Can I add something if I may? We are not manufacturing in 2025 exactly what we were manufacturing in 2024. In terms of product mix, there’s more made to measure than composite because we’re manufacturing what the market wants, and we have the space, we have the availability finally in terms of space to manufacture more made to measure. It’s a different mix. It’s not copy and paste of the production line of 2024. Thank you, Grazia.

Margherita Sacerdoti, Head of Investor Relations and Sustainability, Ferretti Group: Another question from Natasha. Brilliant, from UBS. Natasha, please go ahead.

Thank you very much. I hope you can hear me. Just to come back on the competitive dynamics, what do you think might change that? Particularly with the smaller yachts where you say you’re seeing more competition, what could be the catalyst for that to change? Do you think this is just how the industry could be for some time? Related to that, when you describe the competitors giving these significant discounts of 40% or 45%, can you share what your comparable discount is? You’ve said it’s just a little bit, but could you just give us some numbers to that, please? Thank you.

Alberto Galassi, Chief Executive Officer, Ferretti Group: Okay, what I think is some shipyard will not make it. In my opinion, they will not be able to cross the desert unless a huge capital injection, equity injection, because you cannot survive. I mean, let’s be very simple. This business is not rocket science. You’re buying engines from Germany mainly or from Sweden, and you’re paying them in euro. You are the workforce. In this specific case, you pay them in pounds. You can have a lot of external workers or you can have a lot of employees. It depends on how the business is structured. You distribute yourself, or you’re in the hands of a dealer and the dealer needs to survive, so it’s charging you a big discount. Unfortunately, with a common new trend, you’re selling in the U.S. The examples we are referring to are mainly in the U.S.

market, mainly some specific segments, also sometimes in Europe. I don’t see the shipyard, the possibility to survive in this business environment if this is the kind of strategy that you have in place because you can breathe for a while and then simply you die because there’s no more oxygen. Unless you keep investing and injecting equity in the company to keep the zombie company alive. I want to be very straightforward. How do we compete? It’s very simple. We leave the table and the negotiation because the client doesn’t see that he’s actually buying something that is really. There’s a reason why there’s a 45% discount over there in some areas. It’s because the value of that boat is really. They’re killing the brand, they’re killing the resale value of the boat. If the client doesn’t understand because it’s purely attracted by that, it’s not our client.

We leave the negotiation, we look for our client. Negotiations take longer time. Clients need to be educated. It’s very easy when you have a brand that says by itself and it speaks by itself. It’s more complicated when you have to educate. It’s going to be like this for what, a year? How long can they survive? I don’t see that much life unless the business model changes. In that specific case, our discounts are not even comparable. They’re really missing, I would say, two digits around it. There’s no competition. Again, let’s go back to the scarcity. How many units in the world are we talking about that can compete with the specific model? I received the contract last night. Or maybe we have four. Thank God. One of the competitors is the Ferretti 800.

We sold eight units and the discount is not even close to the comparison. Even having the new brand, sorry, the new models, the product range, which is young, we renew the fleet every four years. That kind of thing is attracting the clients more than boats that maybe have been sitting there for a while. It’s very hard to read, but it’s not the same business. We are in the same business brackets, but it’s not the same business. The numbers speak by themselves.

Perfect. That’s very clear. Thank you.

Margherita Sacerdoti, Head of Investor Relations and Sustainability, Ferretti Group: We have two questions, written questions about an update on the share buyback program.

Alberto Galassi, Chief Executive Officer, Ferretti Group: The board we had today, the board approved the numbers and it’s been raised by one director, three topics. Topic 1, the stock exchange program and long term incentive plan for the management. Of course, in order to have a stock exchange, a stock, sorry, a stock option plan for the managers and for top employees of the company, you need to have a buyback program. It’s been addressed also today. I know it takes longer than everybody expected, but it’s not forgotten, still on the table. There’s been a discussion on this also today.

Margherita Sacerdoti, Head of Investor Relations and Sustainability, Ferretti Group: We have one last question from Niccolò Guido Storer again.

Niccolò Guido Storer, Analyst, Kepler: Yes, can you hear me? Yeah, still me. Just a clarification on the U.S. If I remember well, one of the last times we spoke, you said that you would not increase prices to compensate for U.S. dollar weakness. Is this confirmed? If this is the case, are you still expecting to have a profitability boost in the coming periods from the region?

Marco Zamarchi, Chief Financial Officer, Ferretti Group: Yes, I do confirm that we haven’t increased the U.S. price list because of the tariff. We reviewed the price list in September, as we do every six months. The consideration to increase or not the price of each model was not driven by the tariff. We didn’t include it. We made our market analysis to see if we can increase by 1%, 2%, 3% or keep it the same, taking into consideration the success of the product and so on. No decision was taken in consideration of the tariff first. The additional contribution that we expected from the U.S. market is not because of the price increase, but is the natural, the normal, the standard margin that usually we gain in the U.S. market.

Alberto Galassi, Chief Executive Officer, Ferretti Group: Let me take the opportunity to remind that the tariffs do not apply on whatever is not wearing a U.S. flag. Anything bigger than 30 meters, usually you don’t have an American flag. You can have any other BVIs or Cayman or. That’s what the tariffs below 24 meters, they have a role and we had no negotiation lost because of the tariffs. That is the reality so far.

Niccolò Guido Storer, Analyst, Kepler: Thank you.

Margherita Sacerdoti, Head of Investor Relations and Sustainability, Ferretti Group: There are no more questions. Thank you for being here and have a good day.

Marco Zamarchi, Chief Financial Officer, Ferretti Group: Thank you.

Alberto Galassi, Chief Executive Officer, Ferretti Group: Thank you very much.

Niccolò Guido Storer, Analyst, Kepler: Grazia.

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