The Italian Sea Group (TISG) profits jump 54%YoY

The Italian Sea Group’s (TISG) reported financial results for the third quarter wherein it posted a strong upward trend as operating revenues clocked in at €292.1m, witnessing a jump of 12.5% from €259.6m in the same period of 2023.

This uptick was driven by the luxury yacht manufacturers’ shipbuilding division, which saw a 13.2% increase in revenues to €257m. The Refit division also contributed to the increase in topline, growing 5.8% to €35m.

Sign up for the Superyacht Investor newsletter

Geographically, the shipbuilding division saw the largest gains in the Americas (55% of total) and Europe (36%), while APAC accounted for 9%.

In the Refit business, Europe remained the largest market at 82%, followed by the Americas at 29% and APAC at 37%.

The order backlog provides good visibility into future performance, with around 90% of the order book consisting of yachts over 50 meters in length, scheduled for delivery through 2027.

READ: TISG reiterates Bayesian ‘unsinkability’, sues New York Times

This focus on the mega and giga yacht segment aligns with the company’s strategic positioning and the growing global demand from ultra-high net worth individuals.

Turning to profitability, the group benefitted from successful operating cost management while improving production efficiencies reflecting in margin growth. Consolidated EBITDA increased 16% year-over-year to €50.1m, with the EBITDA margin expanding from 16.5% to 17.2%.

The company attributed the widening of margin to strong cost management; improved production processes ;synergies from investments in production capacity; increased product pricing and brand affirmation and economies of scale, particularly on repeat projects.

At the bottom line, consolidated profit grew 53.7% to €37.7m, up from €24.5m in the prior-year period. This robust earnings growth was supported by a combination of higher revenues, margin expansion and the benefit of €16.5m in income from extraordinary charges.