Ferretti Yacht Orders Drop 33% as Middle East Conflict Delays Deliveries
Ferretti's Financial Performance and Market Challenges
Order Intake and Revenue Outlook
May 19 (Reuters) - Italian yacht builder Ferretti's order intake declined by a third in the first quarter, weighed down by global uncertainty and the conflict in the Middle East, it said on Tuesday.
The company expects its full-year net revenue from new yachts to come between 1.25 billion and 1.265 billion euros ($1.45 billion and $1.47 billion), which would be slightly higher than last year's 1.23 billion euros.
Leadership Changes and Governance Uncertainty
Last week, China's Weichai Group won shareholder support in a vote that ended Ferretti CEO Alberto Galassi's 12-year tenure. However, Czech investor KKCG Maritime, which led the challenge to Weichai, appealed the validity of the decision, extending uncertainty over the company's governance.
Key Financial Highlights
• Adjusted core earnings (EBITDA) fell 7.2% to 48.7 million euros in the first quarter
Impact of Middle East Conflict
• "Situation in the Middle East is causing delays in order intake from the region as well as in delivery of boats scheduled for that market," Ferretti said
Order Backlog and Capital Expenditures
• Net order backlog declined to 722.3 million euros from 828.6 million euros at the end of last year
• Ferretti sees capital expenditures between 70 million and 75 million euros in 2026
Regulatory and Currency Notes
• Italy is assessing the request by KKCG for "golden power" scrutiny on Ferretti, Industry Minister Adolfo Urso said on Friday
($1 = 0.8596 euros)
(Reporting by Mirko Miorelli in Gdansk, editing by Milla Nissi-Prussak)
