Ferretti (SEHK:09638) Q3 2025 Earnings Call October 23, 2025 08:30 AM ET Company ParticipantsMarco Zammarchi - CFOAlberto Galassi - CEOMargherita Sacerdoti - Head of Investor Relations and SustainabilityNatasha Brilliant - Executive Director of Equity ResearchAdrien Duverger - Equity Research AssociateConference Call ParticipantsEmanuele Gallazzi - Equity AnalystNiccolò Guido Storer - Equity Research AnalystMargherita SacerdotiGood afternoon everyone and welcome to the Ferretti Group first nine months 2025 ...

Financial Data and Key Metrics Changes - The order intake increased to €771 million, approximately 6% higher than the first nine months of 2024 [3] - The net backlog rose by 4.5% to €795 million compared to €761 million at the end of the first half of 2025 [3] - Revenues increased by 2.5% to €887 million from €863 million in the previous nine months [4] - EBITDA also grew by 2.5% to €142 million compared to €138 million in the prior year [26] Business Line Data and Key Metrics Changes - The made-to-measure segment saw a significant increase of 32% over the nine months and 185% in the last quarter [10][22] - The contribution from the made-to-measure segment increased by nearly 14%, while the superyacht segment generated a 33% increase [25][26] - The Custom Line segment remains a backbone of revenues, with new models contributing to sales [16] Market Data and Key Metrics Changes - Europe was the leading market, with a 32% increase compared to the previous nine months and an 89% increase quarter-over-quarter [23] - The Middle East market performed well with an 18% increase, excluding superyacht orders from the previous year [23] - The Asia Pacific market showed a modest growth of 2%, with a 13% increase but remains a small area for the company [23] Company Strategy and Development Direction - The company is focused on the made-to-measure segment, which represents 55% of the order intake, and aims to maintain its position in the luxury market [9][37] - The company is investing in expanding its dealer network in Asia Pacific to capture potential growth in that region [48] - The management emphasized the importance of brand strength and design in attracting younger clients [50] Management's Comments on Operating Environment and Future Outlook - Management noted that the market is stabilizing after a period of uncertainty due to geopolitical tensions and tariffs [8][9] - The company expects strong performance in the upcoming American season and is optimistic about the visibility of future orders [38] - The management confirmed guidance for net revenues of €1.24 billion and an adjusted EBITDA margin of 16.5% [41] Other Important Information - The company has a positive net financial position of €65 million and aims to exceed €100 million by year-end [31][32] - Capital expenditures for the first nine months were €64 million, with a guidance to remain below €90 million for the year [28] Q&A Session Summary Question: Consumer outlook in different regions and early October trends - Management reported strong negotiations turning into contracts, particularly in the U.S. and Middle East, but noted a flat trend in Asia Pacific [46][48] Question: EBITDA margin improvement and building blocks - Management expects to achieve a 16.5% EBITDA margin by year-end, citing cost containment measures and volume discounts from suppliers [55][57] Question: Update on M&A pipeline - Management is in the process of due diligence for potential acquisitions and is optimistic about signing exclusivity rights with targets [54] Question: Ongoing negotiations and segment mix - Of the €430 million in ongoing negotiations, €80 million has already converted into orders, with a global mix across regions [63] Question: Pricing dynamics and discounts - Management clarified that discounts are reflected in lower revenues, but they maintain a limited discount policy compared to competitors [86] Question: Net working capital expectations - Management confirmed expectations to reach a net working capital to sales ratio around 10% by year-end [72]

Financial Data and Key Metrics Changes - The order intake increased to €771 million, a 4.6% rise compared to the first nine months of 2024 [3] - The net backlog rose by 4.5% to €795 million from €761 million at the end of the previous quarter [3] - Revenues increased by 2.5% to €887 million from €863 million in the previous nine months [3] - EBITDA also grew by 2.5% to €142 million compared to €138 million in the prior year [19] Business Line Data and Key Metrics Changes - The made-to-measure segment saw a significant increase of 32% over the nine months and 185% compared to the previous quarter, representing 55% of the order intake [7][15] - The composite segment remained stable compared to last year, with over half of the intake being above 80 feet, which has similar marginality to made-to-measure [15] Market Data and Key Metrics Changes - Europe was the leading market, with a 32% increase compared to the previous nine months and an 89% increase quarter-over-quarter [16] - The Middle East market performed well with an 18% increase, excluding superyacht orders from the previous year [17] - The U.S. market remained stable, with expectations for improvement in the upcoming season [17] Company Strategy and Development Direction - The company is focused on the made-to-measure segment, which is the most profitable, and has invested in CapEx to increase production capacity [10][21] - The company aims to maintain its position in the luxury market, avoiding aggressive discounting strategies that could harm brand value [26][74] - Future growth is anticipated from the U.S. market, with a focus on larger boats and customization [28] Management's Comments on Operating Environment and Future Outlook - Management noted that the market is stabilizing after a period of uncertainty due to geopolitical tensions and tariffs [6] - There is confidence in achieving the annual guidance, with expectations for continued order intake growth and improved profitability [30] - The company is optimistic about the upcoming boat shows and the potential for increased orders, particularly in the U.S. [28] Other Important Information - The company has a positive net financial position of €65 million, with expectations to exceed €100 million by year-end [22] - CapEx for the first nine months was €64 million, with guidance to remain below €90 million for the year [20][21] Q&A Session Summary Question: Consumer outlook in different regions and early October trends - Management reported strong negotiations turning into contracts, particularly in the U.S. and Middle East, while expressing disappointment in the Asia Pacific market [34][35] Question: EBITDA margin improvement strategies - Management outlined cost containment measures and volume discounts from suppliers as key strategies to maintain EBITDA margins [39][40] Question: Update on M&A pipeline - Management confirmed ongoing discussions with potential targets and entering due diligence processes [38] Question: Segment mix in ongoing negotiations - Management indicated that ongoing negotiations are global, with sales across various regions, including Asia Pacific and Europe [45] Question: Pricing dynamics in the second-hand market - Management stated that the second-hand market is not a concern due to the scarcity of units and limited production [46] Question: Working capital expectations - Management confirmed expectations to achieve a net working capital to sales ratio around 10% by year-end [50]