Ferretti, an Italian luxury yacht builder, experienced a significant downturn in its first quarter of 2026, with new orders plummeting by 33.6% to €180 million. This decline was attributed to prolonged decision-making cycles among customers and postponed contract signings, primarily due to geopolitical tensions in the Middle East. Notably, the Dubai Boat Show was delayed from April to November 2026, impacting sales in the region. Geographically, while Europe saw a 28.2% increase in order intake to €99 million, accounting for 55% of the total, the Middle East and Africa (MEA) region dropped by 33.9%, and the Americas (AMAS) collapsed by 87%. Asia Pacific (APAC) showed growth of 35.2% from a smaller base.
The sharp drop in order intake raised concerns from the Italian financial markets watchdog, Consob, which reportedly queried Ferretti regarding its asset valuations. This scrutiny comes as the company navigates a challenging market, impacting its client-funded yacht-building model. The industry typically relies on staged customer payments to fund construction, and delays in orders and deliveries strain cash flow, forcing builders to finance ongoing work without immediate final payments. Ferretti's net financial position also fell to €18 million at the end of March 2026, down from €111 million at the end of December 2025, partly due to seasonal cash spend and lower down payments from delayed orders.
Despite the order softness, Ferretti's order backlog remained relatively stable, at €1,718 million as of March 31, 2026, consistent with the €1,716 million at year-end 2025. The net backlog for delivery in 2026 increased to €470 million from €415 million in the prior year, with €772 million of the full year 2026 revenue already secured. However, this stability in backlog contrasts with competitors like Sanlorenzo, which reported a 25% higher Q1 order intake of €223 million and a backlog of €1.23 billion as of March 2026.
Ferretti's revenue from new yachts declined by 5.6% year-on-year to €585.6 million in the first half of 2026, though the second quarter showed an improved trend. Adjusted EBITDA reached €92.5 million with a margin of 15.8%, and net profit stood at €37.9 million, down from €43.6 million in the first half of 2025. The company's net financial position improved to a net cash of €95.0 million by June 30, 2026, an increase of €76.6 million from March 31, 2026, supported by seasonal working capital release and dividend distribution. The company updated its full-year guidance prudently due to continued geopolitical and macroeconomic uncertainties. The Middle East and Africa region's contribution to new-yacht sales notably fell from 35.4% in H1 2025 to 28.0% in H1 2026, a decrease from €219.9 million to €163.8 million.
