Refit a ‘critical asset’ for Palumbo Superyachts
Francesco Carbone is general manager of Palumbo Superyachts based in Ancona.
It might only be about 15% of the business but refit is a “critical asset” for Palumbo Superyachts, according to general manager Francesco Carbone.
Refit remains “more resilient” in the face of headwinds given the needs of existing yachts to be maintained, he adds.
Across the Palumbo Group, which includes shipbuilding and yachts, the company operates nine yards around the Mediterranean and eastern Atlantic, capable of refitting 120-150 yachts per year.
“We know we can expect a certain number every year,” says the Ancona, Italy-based Carbone. “It is a less complicated business than attracting new buyers to build the boats and waiting two, three, four years until they can jump aboard.
“Certainly, the margins are better than construction.”
New build, however, is where the bulk of the business lies across four brands: Columbus Yachts specialises in custom steel and aluminium superyachts from 37-80m; ISA Yachts offers a semi-custom range up to 70m and fully custom builds for larger sizes; Mondomarine focuses on steel explorer yachts and all-aluminium semi-planing yachts between 40-60m; and Extra Yachts, which serves the smaller yacht segment starting at 90ft, primarily in fibreglass.
“Business is not bad, even in this year when there is a general slowdown in the market. We are almost fully booked until 2028,” says Carbone.
The Italian notes there has been a “psychological slowdown” from the US over the past 8-10 months but he expects to see “a lot more action” from the US market as a result of President Trump’s Big Beautiful Bill. “We feel that is going to be pretty good for the yachting industry,” he adds.
ISA Yachts Classic 65 M/Y Resilience.
‘Sweet spot’
Palumbo Superyachts’ philosophy is to build predominantly upon order which makes for “a less risky business model”.
“This strategy is paying off because we have 18 yachts under construction from 30-80m, 16 of which have been sold,” says Carbone. “In the first five months of the year, we were able to close on two 45m and one 65m. So we can’t complain.”
The exact split of projects under construction is 11 ISA Yachts, four Columbus Yachts, three Extra Yachts. Carbone says the company has seen a “shift in size” with inquiries for larger yachts growing.
“Two years ago, we had a lot of 35-45m, now we have more inquiries for 45-50m below 500GT, 65m and 80m. The 50-80m segment is definitely our sweet spot. We know what the cost is, what the challenges are.
“Certainly, that type of clientele is more resilient to the economic and financial headwinds.”
Clientele across the brands is roughly 50% European and at least 30% from North America with brokers bringing about two thirds of enquiries. The average age is also trending down to between 40 and 50 years old from over 60 a decade ago, explains Carbone.
“About 90% of clients already have a boat but were not involved in the build process and now they are ready to step up and do something that really ticks their boxes,” says Carbone. “They want to enjoy the build process and build something from scratch with us.”
Columbus Yachts Custom Hybrid 50m M/Y Anjelif.
‘Never-ending story’
Salvatore Palumbo first opened a small carpentry and metalwork shop supporting the local ship repair industry in 1967. His son Antonio, along with his grandsons Giuseppe and Raffaele, grew the company into a major business specialising in the construction, refitting and conversion of commercial ships. It established a superyacht division with Columbus Yachts in 2008, acquired ISA Yachts in 2016, launched Extra Yachts in 2017 and took over Mondomarine in 2020.
The company’s financial strength, flexibility and value for money are “key assets”, alongside the quality and innovation of the product, says Carbone.
On the refit side, Palumbo Superyachts undertakes everything from routine maintenance and repainting to major refits or conversions, often after a change of ownership. Given the seasonal requirements for maintenance and the growing fleet, its refit yards are “pretty busy”.
“If you want to stay six months in a shipyard, you better book at least the winter before, ideally,” says Carbone. “It depends on the amount and the complexity of the works that must be carried out.”
Often, owners “get excited” and what started as a light refit ends up with a revamp of almost the entire boat.
“You start with the interior, then you change piping, cables, wires, electrical things … it becomes almost a never-ending story,” he says. “Sometimes we feel they would be better off building something from zero.”
ISA Yachts GT45 M/Y UVII.
Another benefit of the refit business is to maintain relationships with stakeholders such as captains, crew and yacht managers who may in the future bring new clients in, he adds.
Carbone acknowledges a common headwind across the industry: the dwindling availability of a quality workforce.
“It’s an issue that everybody’s facing right now,” he says. “Everybody wants to work with the reliable ones, but the good ones, they are busy. We think we have good, long-term relationships so they are still keen to work with us.”
In the Palumbo Superyachts pipeline, either under construction or in discussion, are several projects which are “forward thinking” and will “stand out” in the yachting world, according to Carbone.
“Having the challenge to do something that has never been done before is what we really like,” he adds.
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