Ferretti S.p.A. 2025 Separate Financial Statements: Key Investor Highlights

Strong Financial Performance Amid Market Uncertainties

Ferretti S.p.A., a leading designer and manufacturer of yachts and recreational boats, has released its audited separate financial statements for the year ended December 31, 2025. Key highlights point to robust financial results, a strong balance sheet, and continued focus on ESG and sustainability priorities. Shareholders and investors should note several important areas that may impact share price and valuation.

1. Financial Performance Highlights

• Revenue: Ferretti S.p.A. reported total revenue of €1,239 million for 2025, representing an increase from €1,184 million in 2024. Net revenue after commissions and other related costs was €1,184 million, up from €1,129 million in the prior year.
• Profitability: Profit for the year was €44.6 million, a decrease from €63.2 million in 2024. This was primarily driven by higher provisions and impairment costs, as well as increased depreciation and amortization.
• EBITDA and Operating Cash Flow: Earnings before tax, financial charges, depreciation, and amortization stood at €141.8 million in 2025, compared to €145.7 million in 2024. Operating cash flow rebounded significantly to €126.5 million, up from a negative flow of €15.4 million in the prior year.
• Dividends: The Board proposed a dividend of €37.2 million (or €0.11 per share) for 2025, an increase from €32.8 million (or €0.097 per share) paid in 2024. This payout is subject to shareholder approval.

2. Business Segments and Revenue Breakdown

• Composite Yachts: Revenue declined to €464 million from €532 million.
• Made-to-Measure Yachts: Revenue grew to €489 million from €411 million, reflecting strong demand for custom and luxury vessels.
• Super Yachts: Revenue increased to €190 million from €149 million.
• Pre-Owned and Other Businesses: Pre-owned sales rose to €16.7 million from €13.8 million.

3. Balance Sheet Strength and Liquidity

• Equity: Shareholders’ equity increased to €940.5 million from €929.4 million a year earlier, underpinned by retained earnings and comprehensive income.
• Cash Position: Cash and cash equivalents stood at €105 million at year-end, compared to €116 million at end-2024. The company maintains a new revolving credit facility (RCF) of €100 million, with no drawdowns at year-end and no guarantees provided on real estate or assets.
• Net Financial Position: Total financial liabilities were €42 million, up from €21 million in 2024, mainly due to lease liabilities and new borrowings.

4. Key Audit Matters and Risks to Watch

• Revenue Recognition for Boat Construction: Revenue is recognized over time using the percentage-of-completion method. This involves significant management judgment in estimating project costs, which may impact the timing and amount of recognized revenue. The auditors have highlighted this as a key area of audit focus.
• Recoverability of Intangible Assets (Trademarks): Ferretti holds €222 million in indefinite-lived trademarks. These are tested annually for impairment using discounted cash flow models. The audit firm conducted independent recalculations and sensitivity analyses, concluding that no impairment was necessary, but cautioning that future performance should be closely monitored.
• Provisions and Impairments: Provisions for product warranties, legal disputes, dealer incentives, and other risks total €39 million. The company also recognized increased impairment losses on trade receivables, reflecting heightened credit risk awareness.

5. ESG, Climate Risk, and Regulatory Compliance

• ESG Initiatives: The company reaffirms its commitment to ESG, monitoring key indicators such as energy consumption, CO2 emissions, gender diversity in management, and employee training. No ESG-related risks were found to have a material impact on the company’s financial position in 2025.
• Regulatory Developments: Ferretti has aligned its sustainability reporting with European Sustainability Reporting Standards (ESRS) and is preparing for enhanced disclosures in 2026.
• Pillar Two Global Tax Rules: The company does not expect a significant impact from the new OECD/EU minimum tax rules, but continues to monitor developments.

6. Financial Risks and Sensitivities

• Liquidity: The company maintains a robust liquidity profile, with proactive cash flow planning and a conservative approach to debt.
• Market and FX Risks: The main exposure is to the US Dollar, but no currency hedges were in place at year-end. Interest rate sensitivity analyses show moderate impacts from changes in Euribor.
• Credit Risk: Receivables are well-managed, with most payments collected upon boat delivery. The allowance for doubtful accounts rose to €3.7 million, reflecting continued vigilance.

7. Corporate Governance and Remuneration

• Board and Audit Fees: Total fees paid to auditors and advisors were €674 thousand in 2025, down from €941 thousand in 2024, reflecting some reduction in advisory work.
• Dividends and Reserves: The legal reserve was increased by €3.16 million, and the proposed dividend for 2025 represents a payout ratio consistent with prior years.

8. Outlook and Potential Price-Sensitive Developments

• Market Risks: The company warns that ongoing geopolitical tensions, especially recent developments in the Middle East, could introduce volatility in markets, exchange rates, and the timing of order collection. Management notes that the potential impact is difficult to quantify and will depend on the evolution and intensity of these global dynamics.
• Dividend Proposal: The Board’s proposal of a higher dividend (€0.11 per share) is subject to shareholder approval and may positively influence share value.
• Impairment Test Results: No impairment was necessary for trademarks and CGUs, but this will be monitored for changes in business conditions.

Conclusion

Ferretti S.p.A. enters 2026 with a solid financial base, increased dividends, and a clear ESG strategy. However, investors should remain alert to external risks, including geopolitical developments, cost estimation challenges in long-term contracts, and the potential for market volatility. The company’s strong liquidity and prudent management provide confidence, but ongoing monitoring is essential.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the full financial statements and consult their professional advisors before making investment decisions. Market conditions and company performance may change, affecting the forward-looking statements herein.

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