Ferretti(09638) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Ferretti Group achieved the highest level of revenues and margins since management took over in 2014, with adjusted EBITDA growing by 6.7% year-over-year and adjusted EBITDA margin increasing by 30 basis points to 16.5% from 16.2% [3] - Revenues increased by 5% to EUR 1,232 million compared to EUR 1,173 million in the previous year [3] - The order backlog rose to EUR 1.716 billion, reflecting a 3.1% increase from the previous year [4] Business Line Data and Key Metrics Changes - The growth in revenues was primarily driven by new boat sales, with the market for new boats not experiencing growth [5] - The average ticket size for orders increased from EUR 4.6 million in 2024 to EUR 5.1 million in 2025, indicating a shift towards larger models [17] - The made-to-measure segment saw a significant increase in order intake, up by 47% year-over-year, while the composite yacht segment continued to grow [20] Market Data and Key Metrics Changes - The overall market for boats decreased by 3.1% in 2025, with a notable decline in the small boat segment [5] - The Americas market performed well, with a 22% increase in sales, despite the absence of superyacht sales in that region [26] - The Middle East was affected by a decrease in superyacht orders, with only 2 superyachts sold compared to 5 the previous year [18] Company Strategy and Development Direction - The company aims to focus on the most profitable segments, particularly in the made-to-measure and high-end composite yachts, while avoiding entry-level segments where margins are low [9][10] - Ferretti Group plans to invest in the Asia Pacific region to capture more market share, recognizing the potential for growth in countries like Indonesia, Malaysia, and Australia [36] - The management emphasized the importance of maintaining a diverse brand portfolio to cater to different customer segments and preferences [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in client loyalty, with 49% of sales coming from repeat customers, indicating strong brand loyalty [11] - The company anticipates challenges in the first half of 2026 due to ongoing tariff issues but remains optimistic about recovery in the second half of the year [32][37] - The management highlighted the importance of maintaining profitability and not compromising on margins, even in a competitive environment [24][25] Other Important Information - The company launched 13 new models in 2025, demonstrating a commitment to innovation and product development [13] - CapEx for the year was aligned with guidance at approximately EUR 90 million, with over 50% allocated to R&D [29] - The net financial position at year-end was EUR 111 million, reflecting strong cash flow management [30] Q&A Session Summary Question: Client engagement and buyer behavior changes at boat shows - Management noted that while there were fewer visitors, the quality of potential buyers improved, particularly in the U.S. market [46] Question: Governance and board renewal implications - Management indicated that the upcoming board renewal could either continue the current strategy or mark a new chapter for the company [45][49] Question: Future trends in the composite market - Management expects the trend of challenges in the composite market to continue, driven by competition and pricing pressures [52] Question: EBITDA margin improvements - The increase in EBITDA margin was attributed to a favorable product mix and cost discipline, with expectations for continued growth in 2026 [56][57] Question: M&A pipeline and strategic acquisitions - Management is looking for strategic acquisitions that align with the company's growth areas, emphasizing discipline in evaluating potential targets [70][72]