Ferretti Stock

Good afternoon, everyone, and welcome to Ferretti Group 2026 First Half Results Conference Call. Thank you all for joining us. We appreciate your time and interest in Ferretti Group as we share an overview of our performance over the first half 2026 and discuss the outlook for the future.

Before we begin, let me introduce our speakers. Mr. Stassi Anastassov, our Chief Executive Officer; Mr. Marco Zammarchi, our Chief Financial Officer; and myself, Margherita Sacerdoti. Today's agenda will cover key highlights from H1 2026, business dynamics, financial results, followed by a Q&A session. [Operator Instructions]

With that, let me hand it over to Mr. Stassi Anastassov to get us started. Mr. Anastassov, the floor is yours.

Thank you, Margherita. Good morning, everyone, and thank you for joining us. The last time I spoke to you, I had been in this business for 2 days. This morning, it is 2 months and 2 weeks. I've spent that time at our shipyards, with our people, with the designers drawing the boats we will launch next, with our dealers and our partners and also with many of our valued owners. These owners have become one of my most important stakeholder groups. The purpose was not to explain the past. The purpose was to understand it and to understand what this company needs in order to deliver a more consistent return to its shareholders.

The first half of 2026 was below our own expectations. Order intake, in particular, was not where it needed to be. The Middle East and the wider macroeconomic environment are real, and you have seen them in our release this morning. None of it, however, changes the task. We own 7 of the strongest brands in yachting, and we have to learn to grow share and business and orders behind these in the difficult years as well as the good ones. This is what a superior business model should actually deliver.

Marco will take you through the figures. Two of them are worth holding on to. The second quarter was already better than the first and cash built strongly through it, of course, after some dividends. The third is the margin. It demonstrates that despite lower volumes, we have remained disciplined on pricing and on product mix. We have not bought volume with discounts and we will not buy volume with discounts, something that is almost holy to us. Premium brands are not discounted.

Now to guidance. We have looked hard at the first half and what is realistic is for the rest of the year. You know how it is, many meetings, multiple scenarios. On paper, our previous guidance is still mathematically feasible. But frankly, I would rather give you what I believe than what I hope for. In my career, I've learned that saying it as it is works better, and it's actually long term, much better than sugar coating it. So we're revising our guidance today.

One thing I want you to look at is the shape of the new range because it matters as much as the numbers. It is wide, and it's wider at the top and narrow obviously at the bottom, because the bottom ask for our second half to pretty much do what last year's second half did, a good second half last year. And most of it, a large part of it, I would say, is already sold. It sits in the backlog we hold today. The top depends, however, on new orders we still have to win between now and December.

Obviously, I have been told that a narrow range would look more confident. But frankly, I want to be honest with you because we have a long season ahead of us, and we will do our best to deliver and overdeliver. But for now, it's more prudent to keep the range at the top a little bit wider. We're doing what we can on the internal numbers. We're reducing capital expenditure. That is a decision, not a constraint. We're protecting cash and the strength of the balance sheet and neither is being traded against the guidance.

Obviously, one of the important things for you to note is that these are forecast changed, but this is not changing our ambition. Internally, we'll continue to manage this business against our original objectives. Our priorities for the second half are specific, deliver every yacht in the September to December program on time, convert opportunities into signed contracts, hold price, generate cash. We're looking at the United States. We're looking at the Middle East. We're reviewing distribution coverage, and we even look at the people required to deliver on those reinforcements.

Order intake is the measure that matters most from here. It is what converts into revenue beyond this year. Rebuilding it is the clearest single priority of the second half, and this is where my own time is going to be spent. I do want to spend some time on our business model, and this is, to me, the most important element for you to look at when you review our results and the future.

People keep asking me what strategy I'm going to change. My answer is always the same. There is no new invention or an immediate acquisition. I spent my first months here looking for it. What I found is that is a business model that is already superior and one, frankly, I did not invent. 7 unique iconic premium brands, most of our competitors have 1 or maybe 2. 7 amazing shipyards, all in Italy by very strong people, very skilled people that have been there for generations. This capability is not something that anybody can take away over a cycle, and it's not diminished by a forecast revision.

We're not revising our franchise. We're not revising our business model. As a matter of fact, we're actually going to strengthen our business model, and we are doing it, and we're going to strengthen our future. Our owners are not buying a product. They are buying the craft that come back and they come back for it. We want and we have the ambition to build the best boats in the world, and we want to continue fueling the best brands in the world in yachting.

We need simply to continue building better products, uncompromising quality and execute, execute, execute. We're not complacent and we're not managing this company through a soft market. We're building one that outperforms this market consistently and have turned 7 of the strongest brands in yachting into better return on capital and a better return for every shareholder. So the secret is not the strategy. It is the consistency of the execution behind these brands. Our task is not to predict when uncertainty ends. It is to emerge from this period as a stronger company than the one that we entered it. Markets will recover, credibility, execution and great brands decide who wins when they do. And this is exactly what we and I intend to prove to you.

Now I leave you to the numbers man, Mr. Marco.

Thank you, Stassi. Good afternoon, everybody. So let me start with the key highlights of the first half. Already Stassi talked about part of them, let me repeat. So order intake reached approximately EUR 341 million, down year-on-year, reflecting a longer decision-making and contractor conversion cycle, particularly in larger yacht. Revenues instead was -- the decline was a little bit softer due to the good backlog that we have. The decline was materially lower than the reduction in order intake. And adjusted EBITDA reached EUR 92.5 million, 15.8%, minus 20 basis points, confirming the group ability to preserve profitability in a lower volume environment. Cash generation was the stronger element of the semester. Net financial position reached approximately EUR 95 million net cash, improving by around EUR 77 million compared with March after EUR 37 million were returned to the shareholders through dividends.

Before moving to the commercial result, let me leave the floor to Margherita to share with you some info about new product and boat show.

Thank you, Marco. So first of all, looking in the near future, we are approaching one of the most important periods of the year for our industry. Our private preview in Monaco will officially open the European Boat Show season in September, followed by Cannes Yachting Festival and Monaco Yacht Show. These events represent a key moment to show our latest model, engage with clients and convert the actual commercial pipeline into new orders. So the demand remains healthy, negotiations are progressing, and we believe that the upcoming fall events will be very important to unlock the conversion opportunity that we are seeing right now in the pipeline.

Before talking about the new launch, let me just highlight another important milestone that reflects the strength and uniqueness of Riva brand. We opened new Riva lounges in Amalfi and Rovinj, further extending the brand into some of the world's most prestigious destination and creating, again, exclusive spaces where clients can meet and greet and feel at home.

Moving to the latest product launch. We can -- this is a new Custom Line Navetta 35. It was launched in this quarter 2026, but it was already presented at the end of 2025. We already sold 4 units, and this confirms the strong appreciation by the clients of this kind of new generation of made-to-measure yachts. We also presented and launched First Itama 70. It's another important milestone in the renewal of the Itama range. It was unveiled at Dusseldorf Boat Show at the beginning of the year, and the model just entered recently the water. This is technology advanced and design advanced and strengthened, again, the Itama competitive brands' positioning over all the other brands in the industry.

Moving to Pershing. We launched the first Pershing GTX90. This is the latest model that completes the GTX range and follows the 70 and the 80. It was again unveiled in Dusseldorf and represent, again, an important presence in the range 90, 100 foot, so the large composite, as we call it, and combined still a very high-performance yacht as Pershing is known to be with more comfort as the GTX series is meant to be. Finally, we launched a super yacht in the second quarter 2026, a full bespoke 70 meters in Ancona Super yacht, confirming our strength also in this very important segment where we, just to remind you, produce both bespoke yacht and branded super yacht.

Now I hand over the microphone again to Marco that will walk you through the numbers.

So gentlemen, before to go in the detail of the order intake by segment, by geography and so on, we appreciate that the first half performance reflect a slower conversion environment. The impact was primarily concentrated in larger contract where negotiation and decision-making cycles are structurally longer and became more selective. Geopolitical uncertainty in MEA and greater customer caution in other markets also contributed to longer signing time lines.

So we -- on the other hand, the current level of negotiation remain significant in line with last year figure, more than EUR 400 million and broadly distributed across geographical areas. This provide a relevant pool of commercial opportunities, although the timing of conversion remains difficult to predict. Our focus is, therefore, on advancing this opportunity while maintaining pricing discipline and protecting the quality of the order book in view of the boat show season that will start soon.

Now talking about the segments. The order intake by segment, the performance was not uniform across the portfolio. Composite grew year-on-year, supported by seasonal demand in Europe ahead of the summer season and by some recent product launches. Made-to-measure instead was affected by 2 factors: a particularly strong comparison base in MEA region last year and slower contract conversion in the current period due to regional tensions. Instead, in Super yacht, negotiations remain at a very good level. However, order intake is also affected by the scarcity and available production slot as the waiting list still extended towards the end of 2029.

Let me be -- let me elaborate a little bit more about Super yacht. For example, we are -- you know that we are very, very rigid applying some order or some rule about order intake. For example, in H2, we had some negotiations at a very advanced level. We received -- we signed some LOI secured by non-refundable deposit. We are talking about hundreds of millions, but technically speaking, it's not an order. So we prefer to be consistent with our policy and not to show something that we will disclose in Q3.

Instead, by geography, the first half reflected different dynamics among -- across the region. Europe remained an important contributor to order intake, although its year-on-year performance was affected by a demanding comparison base, which includes 2 Super yacht orders recorded in the first half of 2025. MEA instead was mainly affected by local geopolitical tension. We delayed the finalization of some contract. AMAS reflected a more cautious customer approach with longer decision-making and signing time lines. However, the performance improved during the second quarter compared to Q1. APAC instead is a good surprise, continue to make a positive contribution. Now the weight is 12%, and we are quite happy of it.

So let's move to the backlog. The backlog remains an important stabilizing factor for our business. The order backlog stood at approximately EUR 1,455 million at the end of June, broadly stable year-on-year following the delivery executed during the period. And the net backlog was lower, reflecting the softer recent order intake and reduced the Super yacht component. For this reason, I want to share with you some more data about it. However, the portion of the net backlog allocated to 2026 is higher than at the same date last year. So considering revenues already delivered in the first half net backlog scheduled for the remainder of the year, approximately EUR 900 million of 2026 revenues are already secured.

Let's move to the net backlog breakdown because it explains a lot about the dynamics of this company. So the backlog evolution needed to be read together with the order intake dynamics discussed before. Looking across the portfolio, the most significant change versus last year is concentrated in Super yacht with the dynamics that I shared with you a few minutes ago. So we know that in this segment, the current order intake is influenced not only by the conversion time, but also the limited availability of production slot. As I told you, there is some LOI signed already, and we are confident to announce it in Q3.

And if you look at the other 2 segments, you see that the net backlog is practically stable versus prior year with a slight increase for both of the 2 segments. So it's the first time that we share with you this kind of breakdown, but to provide you the confidence that we have in our business and give us the confidence to achieve what we declare as guidance in the rest of the year.

If we move to the revenue by segment, the existing backlog, as I said before, mitigated the impact of the first half order intake. The revenue reached approximately EUR 586 million and declined more moderately than order intake supported by the order collect in previous period. Made-to-measure remained stable year-on-year and instead Composites and Super yachts were lower. So practically, is what we said, this reflects a different timing between commercial activity that come first and financial performance as change in order intake affected the backlog first, while existing backlog continue to sustain near-term revenues.

In terms of profitability, the group continued to preserve solid margin profile. Adjusted EBITDA was EUR 92.5 million compared with EUR 99.1 million in the first half of 2025. The margin was affected by lower fixed cost absorption, reflecting the lower activity of the period. And in addition, the commercial environment remained very competitive with pricing pressure no longer limited to smaller players, but increasingly visible across a broader portion of the market, including larger competitors. Operating discipline and the backlog mix limited the impact on the profitability.

On the CapEx side, the CapEx remains selective and aligned with the group strategic priority. In the first half, CapEx amounted to approximately EUR 31 million and was primarily allocated to new product development. Capital allocation, in fact, continue to focus on product innovation and portfolio renewal. More broadly, the main capacity expansion cycle is carried out in the recent year is now substantially completed with a utilization rate of our shipyard producing fiber glass box at over 80%. So we believe we have to -- we confirm that the CapEx cycle, at least for the production facility at the moment is stopped. That's the reason, the background, the rationale behind the decision to lower the CapEx forecast for 2026.

In terms of cash flow and net financial position, cash generation was one of the strongest elements of the first half, in line with our business, if you compare Q1 '25 and Q2 '25 with what we have is the same dynamics. The net financial position, as I said, was approximately EUR 95 million net of cash in June, improving by EUR 77 million compared with March. The improvement was driven by the seasonal release of net working capital associated with deliveries and by the reduction of composite inventory ahead of the summer season. Approximately EUR 37 million were returned to the shareholders through dividends during the period. And the first half cash performance reinforced the group financial flexibility and provided a solid foundation for the operating strategic priority.

Two more words about net working capital. You see we are back to the seasonal range. Last year was 17.5% now we are slightly less than 15%. So we are in the range that we have in mind that is between 10% and 15%. For sure, we recovered from the unexpected slowdown of sales in Q1, but the company was quite good in reacting promptly and be back on the right track of cash generation.

So I believe I'll conclude my presentation. Now is the time to share with you the annual guidance in detail. As we mentioned before, we revised the net revenues. Even if we are secured for EUR 900 million already secured, we revised in the range between EUR 1,200 million and EUR 1,240 million with an EBITDA margin between 15.5% and 15.9%. CapEx lower by EUR 10 million, just postponing some decisions that are not necessary anymore.

I believe there's time for Q&A. I leave the floor to Margherita or to Stassi if he wants to add something more. If not, let's go.

No, I'm sure that the Q&A will -- I think we're ready for Q&A.

Okay. Let's go for Q&A.

Yes. Thank you for listening to our first half 2026 results presentation. We are now ready for Q&A session. We will start with live question and later on to the written question. The first question is from Adrien Duverger from Goldman Sachs.

So my first question would be on the U.S. market. Could you please comment on what you have seen throughout the first half? It seems that the second quarter has improved quite substantially in terms of order intake. Is that something that you see and expect continuing into the second half?

My second question would be on the new guidance and particularly regarding the adjusted EBITDA guidance. Are the lower numbers simply a reflection of a weaker top line expectation? Or is there something else embedded in your expectations?

And my last question would be on your CapEx guidance. So you mentioned that you wanted to protect the cash position and the balance sheet and you are postponing some investments. Could you please give us a bit more color? And also, are you -- is it a matter of delaying until you have, I suppose, a better idea of the strategy that you want to implement going forward?

Thanks. I will answer the first and leave the second to Marco. On the U.S., great question. I just spent 2 hours with our responsible for the U.S., Mr. Meletti. And we do see improvements, but not at the level that would make me happy. And what I mean by this is that sometimes you see improvements that are based on the market, based on somebody very smart in sales or in -- that are delivering better results. But what I think that we need in the U.S. is to rethink how we're organized, our product portfolio, which models we will push harder, what specific innovation would we need there to unlock that market.

And also, another simple area, how do we actually reach the untapped potential of U.S.-based billionaires that are growing due to the so-called tech AI boom and where are these people? Are they in Florida? Are they in Silicon Valley? Are they in the New York area? And this is really a much more, I would say, a structural improvement in the U.S. that I will be looking for in the future versus a more opportunistic improvement and market-based improvement of the U.S. So I'm not ready to speak to you about all the structural improvements yet, but there is going to be more to come about how we're going to make sure that the U.S. becomes a significantly larger contributor to our business versus what it is today. Marco?

Sure. About the guidance, the revised guidance on EBITDA, as we said, we have to take into consideration 2 major factors that we see. The first one is less efficient fixed cost absorption. So we -- in other words, we put in place as normal some cost containment measures, but they are not enough to recover in efficiently or perfectly the reduction of the revenues. And the second impact, as I mentioned before, we see that in the market there is some price pressure this year. The new is that it's not coming only from a smaller competitor, but also the larger one. So we are projecting -- as Stassi said, we are not intention to sell in discount. But in some cases, we have to take into consideration not to lose every opportunity in the market. This is simply the rationale behind the revision of the EBITDA margin.

And about CapEx, no, there is no any major changes. It was seen that some -- we made some postponement of some industrial facility expansion that are not needed anymore because, as I said before, we have a utilization rate of our shipyard at 80%. So we are quite happy to postpone to next year or when the necessity will come out. On the other hand, we are looking for opportunities for the Super yachts division because the slot are just 6 production slot and the production capacity is filled up at 100%. But nothing that will be reflected in CapEx in the short term.

I hope it's clear, Adrien.

Second question is from Emanuele Gallazzi from Equita.

Hope you can hear me.

Yes.

Just 2 questions from my side. One is a follow-up on the pricing pressure and on what you Marco said about the pricing pressure. I just would like to understand if it is something that you are also seeing on the Made-to-measure segment. And basically, if you have seen, let's say, an increase in the price pressure through the year. The second one is still on the Made-to-measure. You are mentioning longer negotiation in the current environment. Can you just elaborate a little bit more on this? What are your clients asking at this stage? Is it just a matter of pricing, let's say, or you can tell us? And let's say, -- the last one is on the order intake in July. If you can just provide any sort of details on July trend and inflection point in your market?

Let me start again. On the pricing pressure, this is really one of the areas that I'm paying particular attention to. And the way I look at it is relatively simple. Yes, we have pricing pressure. No, not in Made-to-measure, more in the so-called middle range of our offering. And one of the things that I am reviewing every day and in the design reviews with the product teams is we don't want to be willing to use the argument of pricing pressure ever again because we have 7 brands, 7 unique brands. And if you want a Rolex, you buy Rolex, if you want to buy a Patek Philippe, you buy Patek Philippe and you don't buy a Hublot because it's cheaper.

So it's very important for us to be very clear about what each brand stands for to be even more dogmatic on design language and premiumness and quality so that we don't need to be in a situation where we still are today where people are actually, in some cases, substituting some of our brands with a competitive brand that is being sold significantly cheaper. So no Made-to-measure and more to come to make us even less, call it, affected by competitive discounting.

Emanuele, I believe that Stassi has clarified the point one and partially also your second question. Longer negotiation came out from the point that we said before, we are not selling discount. We are not -- and so we have to spend more time to convince about the quality or the allure of our product. So it takes long time. There are some other competitors that are offering the product lowering their price. So it takes more time to convince them. But we are still confident and very confident of the quality of our product. So it's a matter of timing.

You know better than me that providing this kind take seconds to recover from this -- from the discount given, it takes years. So we don't want to run any risk. And the last question was about July order intake. July is not concluded because hopefully, I'm still expecting something today, but it was not bad. I would say good. We are over EUR 50 million order collected in this month that usually is not a brilliant one, but it's a very good sign for us. So quite happy of this news.

Now a question from Natasha Brilliant from UBS.

I've got 3. The first question is you talked about some of the changes you're looking at in the U.S. specifically. But as you look at the whole group overall and the whole portfolio of brands, the whole business, do you think it's the right mix? Do you think it's the right setup for your customers? And internally, do you think the right sort of incentivization structures are in place? That's the first question.

Second question is, does the current environment change your capital allocation priorities at all? Perhaps you could just give us an update on your latest thoughts there? And then my last question is, I believe there was a court hearing on July the 23rd with the challenge launched by KKCG. If you can give us any comments on the outcome of that or any other color, that would be very helpful.

Let me start by the first one. The strategy that this company has been pursuing or I call it the business model is incredibly powerful. And obviously, this was invented already by Norberto Ferretti. Multi-superior brands all with their own equity, all with their own leadership. They even in the beginning, had their own CEOs or general managers or I don't remember exactly in Italian, how they used to call them. This is the most classical successful way to manage a luxury business, whether that's some of the high luxury competitors or even a company like Procter & Gamble.

Ultimately, that model requires an amazingly disciplined execution around the brands when it comes to the gates required to get a new model out, the design language, the consistency, the quality and so on. And my job is not to change that model. We're pretty much where we are with the 7 brands. We could be 8, we could be 6. We really need to become -- for example, you have not been told anything about brands in this presentation. It's all Composites here, CRN, Made-to-measure. We have not talked brands. We've shown you a lot of beautiful pictures. And in the future, I would be looking at brand performance, portfolio performance by brand, including how do we actually grow each of the brands with accountability for the different brands.

So clearly, that's what you may call it a change because maybe it's a change against the way we've been presenting ourselves more recently. But I don't really think that this is a real change against the way this company was thought about and created in the first. So that is, call it, what I call delivering a better execution against the business model we already have.

Geographically, I'm a great believer in feed the big first. So clearly, regions like making sure we continue to be strong in Europe, making sure we have a real business model that is structurally going to make some changes in the way we do business in the U.S. and securing that when the uncertainty in the Middle East eases, that we'll be the first group to be there as an option for the many buyers and future owners of the group. So this is my thinking on the model. Will there be any changes in prioritization? I'll be guided by shareholder return and return on capital, of course. There may be some internal reshuffling, but that is the way I look at the business model today and what we're doing and we will be doing for the future as well. Marco?

I believe that you have answered.

Have I answered?

Just the KKCG.

The KKCG, sure. There was a court hearing on the 23rd of July, and we're expecting some of the, call it, decisions to be made and announced, could come any time this week or next week. But I mean, my take is whatever we're presenting to you and whatever we are saying is our priority and what we're going to do, this is pretty much what the business demands. This is, in my view, not something dictated by a Board or by a specific shareholder. This is dictated by the market environment, the business, the brands we have.

So -- and all our shareholders, actually, I'm just coming out of a Board meeting today, and we have minority Board representation. We have KKCG representative of the Board. We have a great group of Board members representing the broader shareholders, and they all are long-term shareholders, and they all want the company to do well, and they all want the stock price to be significantly higher than what it is today. So from a pure business and shareholder support standpoint, the business has some opportunities and we're addressing them forcefully and with a sense of urgency.

Super. If I could just come back on the question about capital allocation and priorities, just whether anything has changed given the current environment? I know in the past, the company has talked about M&A or shareholder returns. Just any quick thoughts on that, if you can?

Sure. Very, very happy to do that. I was reviewing with the finance team today our returns on capital. And we have some way to go to be better and among the best. And obviously, capital spend and return on capital is a key driver of any business and for any investor. And we are going to really be focused on getting superior returns, because remember, I mentioned to you that we need to make sure that the back end of this engine that is ready for more, ready for more orders, ready for more bigger businesses in North America or in -- even in Riva, where I believe we could do much, much better. We now need to turn on the commercial machine to really drive order intake.

So the way I judge acquisitions because I know that I'm going to get this answer, so I may preempt it is, is it really going to drive our business? It's going to improve the return on capital. Two, is it really strategically needed or is it more of the same? Would it open something totally new? If the answer of question number one is yes. And then there is the other one that is, do we have the organization capability and capacity to absorb that acquisition potentially without diluting our efforts or distracting ourselves from the base business. And every opportunity goes through the same lens. Every single one of them, no matter whether this is a new idea or any of the ideas that you are reading about in the newspapers today.

I hope it has answered your question.

Now a question from Niccolo Storer from Kepler.

Can you hear me?

Yes.

Yes.

Okay. My question -- first question is again on capital allocation and basically if you are currently reviewing the Italian Sea Group dossier and how does this square if yes, of course, with your downward revisions to CapEx?

Second question and last question actually is a clarification about the LOIs you said you signed. I was wondering if those were referred just to Super yachts or if it was, let's say, more of a general comment?

Capital allocation, if you -- okay, you heard about what Stassi said in general terms. But if you are referring to Italian Sea Group, the Italian Sea Group is -- has a lot of expert to be taken into consideration. They have facilities, they have brands, they have some talents there. I believe we have to look at carefully, but we are not in a hurry. We are -- we have just started. I've seen some competitors that they already announced notable action, but I don't believe we are in this situation. The process you know better than me is quite long. So we are looking at the file. Everyone is looking at the file. If you look at the press agencies, every player in this market say, I'm interested. I'm interested. Everyone is interested. There are 2, maybe 3 wonderful locations. And there are some things that deserve to look at there.

Second question about LOI, I was talking specifically about Super yacht because it was the comment related to Super yacht. So we are talking about a couple of projects secured by letter of intent by non-refundable deposit. So our team is working to define the technical specs that for a Super yacht is over 200 pages. So I believe they are -- they have to work the full month of August to secure this order. But it's just a matter of timing.

I actually would like to add something, which is, the process is -- as Marco says, every single person that is serious in your team that has any cash should look at Italian Sea Group. Obviously, there are -- and there are so many negative things that are being communicated and so on. Ultimately, this is a very, very good asset. There are some amazing things in our group, and the founders have done some really great things. It's not only bad. And the question is, for which company does it make most sense and which assets do make the most sense.

So it's a typical situation where everybody should look at it. And frankly, nobody is really late because this is such a big deal and it's so complicated. And you never know which coalitions and how they'll come out and so on. And there are many great speculations about it. But ultimately, there will be a few people that will own this business or owns part of it. Some of them will really do a great deal if they've made their homework properly and others may actually struggle. So the point is really how quickly you are there, how quickly you make announcements about it and so on. The point is, have you done your homework and are going to be there when somebody will really show their colors for that business.

Okay. Last question from Wendy Gao from CICC.

And maybe it's a bit earlier, but would be very appreciated if you could share any color into '27? Or should we expect maybe everything is go back to '25 level in '27?

Could you repeat the question? I'm really sorry. There was a glitch here technically.

Sure, sure. I'm asking about your guidance and outlook into '27, but I understand maybe it's a bit earlier for you to comment more in detail. But just wondering, do you think we should maybe back to '25 level in terms of the top line and bottom line in '27?

Look, I do understand the question now. It's frankly, even if I wanted to answer, it will be very difficult because there are so many variables that we have to deal with. The only thing I can tell you that internally, when it comes to portfolio, work for new models, after sales, on-time delivery, strength of the commercial team and so on, by '27, we should at least internally be ready for growth. Whether we can promise any growth or going back to '25 or whatever it is, it's impossible. But certainly, as I mentioned also in my prepared remarks, we're not waiting for geopolitical conditions to become better. We're strengthening our company to be ready and become stronger.

I have one last written question, actually 2. The first one is why the order intake in Super yacht was 0? And if we can comment on the working capital being at 15% of sales, so higher than historical average.

As we said -- okay, let me answer to the order intake of Super yacht. As we said, in our company, we have 6 production slot for Super yacht fully booked for 2026 and 2027. So to cut short the long story, when a customer approach us, it was on top of the construction time that usually is over 36 months, in some cases, also 5 years, we have to -- we had to add a waiting list. Now the waiting list, I'm not saying that it's over, but it's shorter. And so we are finalizing some deal, as I mentioned twice during the call.

And on top of that, as we said, part of the expansion is we are looking for opportunities in expanding the capacity of Super yachts division. And so we don't see a major concern in this area, especially because the revenues projected for 2026 are 100% secured. And I could say that over 95% are secured also for 2027. And so it's a process -- the different -- the cycle is completely different because Composite yacht, the production cycle is maximum 5 months, for the Made-to-measure is 18 months, but for Super yacht minimum is 30 months. So the order -- the mechanism from the order intake to revenues is completely a little different.

And for the working capital, I heard that it is higher than before, no, because if I compare the seasonality of the company, last year, it was 17.5% and now we are 14.9%. What is abnormal, as we said and we admitted was Q1 '26 because it was an unexpected lower order intake in Q1. Then the company through its discipline every week revised the production level, we slow down some lines, we speed up the other one. We sell some units. We are in the range that we consider after COVID our comfort zone between 10% and 15%.

Again, for 3 reasons is the component of the Super yacht that is negative, the component of Made-to-measure that is between minus 3% and plus 3%. And the biggest component is the composite yacht that has an average between 20% and 25% and because the boat must be ready for delivery in the season. So I don't see any exceptional item or exceptional indication from this component in Q2.

Okay. There are no more questions. So thank you all and have a good day.

Thank you very much, and I hope to see several of you in Cannes or Monte Carlo where we're going to be selling yachts together.

Thank you so much. Bye.

Good afternoon, everyone, and welcome to the Ferretti Group First Quarter 2026 Conference Call. Thank you all for joining us. We appreciate your time and interest in Ferretti Group as we share an overview of our performance over the first quarter and discuss the outlook for the future.

Before we begin, let me introduce our speakers, Mr. Stassi Anastassov, our new Chief Executive Officer; Mr. Marco Zammarchi, our Chief Financial Officer; and myself, Margherita Sacerdoti, Head of Investor Relations and Sustainability. Today's agenda will cover key highlights from Q1 2026, business dynamics, financial results, followed by a Q&A session.

[Operator Instructions] With that, let me hand it over to Mr. Stassi Anastassov to get us started. Mr. Anastassov, the floor is yours.

Thank you, Margherita. Good afternoon, but also good morning to our investors in North America, and good evening to our investors in Asia. This is the first time that I have the chance to speak to you and therefore, allow me to take a few minutes to introduce myself and to tell you about how I look at the business and what has shaped me because I believe that that's going to be an important investment for you to understand and will maybe avoid some of the questions that you may have on your minds.

Through our lives and careers, we're all shaped by beliefs based on the experiences we all have. And I would like to share 5 of the beliefs that I believe are relevant in the context where we are today. The first one is that throughout my career, I've always been fortunate to work with very strong brands, sometimes iconic brands. However, I have never been the founder. I have not invented those brands. I've always been a custodian, a caretaker of those brands. My job has always been to take a brand, take a business and leave it to the next person and to the next group in better shape than what I took.

Typically, when we want to reach higher at home, we would take a ladder and climb the ladder. In business, I believe that in reality, it is standing on the shoulders of the people that have been building the business before us and sometimes the people that have created the business that I'm in charge of currently. And I do want to mention to you that I think that I am standing on the shoulders of 5 amazing groups of people. The first one is the obvious one, Carlo Riva, who, in my view, created the most inspirational and still the greatest brand and the greatest yacht in the world. It's a true icon.

The second one is the person that actually the company, the Ferretti Group is named after, Norberto Ferretti, that founded this company more than half a century ago. The third one is Mr. Alberto Galassi, 12 years of turnaround and 12 years of turning a company that was small into the greatest yachting company in the world. The fourth one is Mr. Piero Ferrari. Mr. Ferrari was Honorary Chairman for the group for 9 years. Many of the innovations and many of the ideas were, of course, colored from his experiences and by his background. Thank you.

Lastly, all the shareholders, small, big, medium, all the shareholders that believe in this company, that invested in this company during various stages of its development, and -- these are the 5, the 4 individuals and the fifth one is a group of people that has -- that have shaped what Ferretti is today. Ferretti today would not be what it is, the greatest company in yachting without your help. Thank you very much.

This is a legacy inherit. And by the way, I'm not taking lightly on naming these people because I am very keen and I've already met several of these people as I mentioned. Unfortunately, Carlo Riva is not among us, but already met and discussed with his daughter, Lia, most recently only an hour ago. So I am very much looking forward to taking learning because these people are going to be my teachers and are going to be very important for me, not only in understanding what has been built and the history, but also shaping the future of the company.

My second belief is about accountability and clarity of roles. I am a great believer that the clearer the accountability, the clear the understanding of who does what in a company, the better the results. Great companies have clear accountabilities and great companies have consistency in what they've been doing. For example, I have already met in the past 48 hours that I've been on board, the majority or many, many employees at different levels, suppliers, partners. And I typically ask 3 simple questions. What is your title? What is it that you are actually doing? But most importantly, what do you believe you are solely accountable for? And typically, that is maybe the most important question and the most important answer that I then judge whether there is any clarity and no overlaps and no confusion.

Clarity and accountability is also something that is very important to me when it comes to governance. When I was doing my due diligence for this role, I was very encouraged by the fact that we have had a governance structure for the past 14 years, largely unchanged with supportive shareholder groups. We've had a CEO for 12 years that has been carefully guiding the company towards where it is, stepping into a company where the governance has been clear and stable for 14 years. The leadership has been clear and stable for 12 years. That's very reassuring to me because it gives me a great base to build upon. And I believe it should be very reassuring for all the shareholders today and all the stakeholders.

My third belief is based on brands and iconic brands. And those are brands that need to be fed if they are not fed properly with strategies, with actions. Nobody cares a brand that was great several years ago. Nobody cares about a product or I don't want to get into other brands that were not probably perfectly managed. So when I say that I need to understand the brands, I'm only doing that because I want to be able to expand them, strengthen them, make them stronger than ever.

Many of you will be questioning and maybe asking yourselves what can a person that has been managing Pampers diapers, Duracell batteries, Head & Shoulders shampoos, what does this person know about yachts? Well, I know how to manage brands, and our brands are iconic. And those brands must be fed with innovation, innovation, innovation because we need to make sure that people buy a Riva Yacht or Ferretti yacht, not because it was great a few years ago, but because it's going to be great tomorrow, the next 3 years and the next 10 years. And this is where the difference is between great iconic brands growing and brands that have been great full stop.

And I want to believe that the brands we have in the Ferretti Group are the brands that are going to be even more successful in the future. However, a brand is a tip of the iceberg. For example, people talk about Ferretti being a luxury company. Yes, Ferretti is magic. The brands are magic. The brands are iconic. However, Ferretti is not a handbag. It needs to be a very sophisticated durable machine and a vessel where people can entrust their families, their friends, storms, saltwater, hard winds. You do not expose your beautiful watch collection or your beautiful handbag collection to this. It is probably one of the most Ferretti yachts of some of the most complicated industrial processes -- and this is where quality, endurance, materials, connectivity of all technology needs to hang together. And that's where we need to continue delighting and delighting and delighting our very, very discerning group of people that want to invest into our yachts.

So I'll be very keen and I'll be focusing a great deal of my time on how to drive the business forward. And this is going to be with great innovation to make our brands greater. So every time somebody says, I want to buy X brand or Riva or Ferretti or Itama or Wally, there needs to be something that comes more than just the brand, something that is a superior quality, superior performance, superior materials, durability and the classical features of what most brands are today. However, a brand cannot be great if it's not profitable. And profits come from everything that I call below the iceberg. The brand, the image, the quality, the shine of the teeth is above the surface.

The engineering prowess, every moment, every element in our factory from purchasing materials to the connectivity, to durability of the sales service, all that needs to be perfect. But it doesn't need to be perfect just for quality, but it needs to be perfect also for costs because even if I want to be able to drive the top line of this business, I need to find the invisible costs to be able to fund our investment because I do have a commitment of profitable growth, and there is nothing that I would ever give up in order to gain cheap volume or to give up growth because of cost cutting.

Great businesses, have to do and must be able to do top line growth and bottom line growth. And this is what I will be focusing on, and this is what I'll be doing with the team because we do have a great team around me.

I do want to share a personal story that would tell you why and how I'm approaching most businesses. My parents left Bulgaria in 1965. I was 4 years old. They left with nothing other than their talent. My father was a concert violinist. My mom was an opera singer. But they did have a secret weapon, and that weapon was the ability and willingness to work hard. I've inherited, hopefully, and I do have -- I have inherited that secret weapon. And I'm not going to leave one stone unturned, one stone unturned until I've been able to find the levers that are going to unlock top line growth and bottom line growth. This is why I'm meeting everybody I can.

This is why when I received a phone call about one of our clients potentially not being sure about an order. My answer to Giordano in sales was, except for Tuesday when I'm busy, give me one time and we're going to take the flight, and it's an overseas flight and meet the customer to turn that order into actual down payment and confirmation. There is nothing more important than to work hard to delight our customers, our employees and our shareholders.

Last but not least, you'll be asking, okay, all these are great -- is great talk, great strategies, but what actually are we going to do? I already told you we want to focus on innovation. I will be focusing on better design because design is something that actually doesn't always travel. In the U.S., people have some different expectations compared to Europe. We need to evolve our offering to also meet those expectations. U.S. is going to be a major priority for me. Technology, we're living in the decade of technology that obsoletes itself very rapidly. We don't want to have what's best today. We want to have what's best tomorrow in everything we do with our yachts.

Performance is important, but performance is not anymore raw performance in horsepower. It's performance that also is sustainable, lower emission and lower impact to the world. That's what we need to look at, and that's what our new consumers are looking for. Materials, materials innovation is one of the most exciting areas to look into. Durability that comes to material innovation, et cetera, et cetera. There are not going to be any shortcuts because shortcuts are what makes great brands fail.

So to make a long story short, you have my commitment to work very hard to make sure that our brands will be healthier than ever and that I'll be able to leave those brands one day much stronger, better, bigger, more profitable, and more known across the world than what they are today. And our shareholders, my ambition to you is that we will be focusing on everything from comp data versus competitors, but it is not going to be our target. I've never had a target to be as good as a competitor. I've never had anything else than being better than all competitors.

Thank you very much. I'll leave it to Marco.

Good afternoon. We start the presentation of sharing the financial data of last quarter. And first of all, going to the key highlights. The order intake in the quarter was lower year-on-year, reflecting a softer quarter and timing in signing, particularly on larger contracts, larger boats. At the same time, as we highlight in this slide, negotiations remain at elevated levels with ongoing discussion amounting approximately to EUR 630 million, 75% better than prior year. That confirm in our opinion that underlying demand remained present despite longer conversion time.

Order backlog, stable at EUR 1.718 billion, confirming the solid foundation of the business and supporting revenues visibility for the year. Against this backdrop, revenues in Q1 were modestly below prior year levels, declining to around EUR 302 million compared to EUR 329 million last year. Profitability, nevertheless, remained resilient with adjusted EBITDA margin broadly stable at around 16.1%, up to -- by 10 basis points year-on-year, reflecting 2 things, 2 factors quite important for our company, supportive mix and disciplined cost management.

So now before to go in deep diving this figure, offering you several excerpts of prior quarter. I leave the floor to Margherita to introduce the business dynamic that are currently in place.

Thank you, Marco. So starting from the boat show. So the European Boat Show season is about to start. We already attended the 2 major boat shows in the U.S., Miami in February and Palm Beach in March, but we couldn't attend the Dubai Boat Show in April because that was postponed due to the war to November.

Moving to the newly splashed product in the first quarter. We can see the wallypower50, the outboard version of the wallypower50 inboard, where we sold 14 units already. So this is a very promising model. for the coming months. You can see the model in the video. And we also announced some new models in different brands. So for the range update, so the restyle that we do every 4 or 5 years to the most successful models, you have the new Ferretti Yacht 720. We already sold 3 units, but the previous version has been very successful, and we sold 48 units.

You can also see the latest model of the Pershing GTX series. Just to remind you, the GTX is what we call the SUV for yachts. So we had the GTX 116, the 80 and now the 90 is out.

Moving to Riva. We have another restyle is the Rivale Super 56 that is taking the place of the old Rivale 56. Again, in the 56, the previous version, we sold 60 units. So again, it has been a very, very successful model. We decided to restyle the design. And the last model that we presented is the range expansion is Itama 70, where we already sold 1 unit. And it's a new model after the Itama 54 that we already presented last year.

So having said that, I'll move back to Marco for the financial results.

Thank you, Margherita. Let's start analyzing the Q1 order intake and negotiation. Q1 order intake was mainly affected by delays in contract conversion rather than by weaker underlying demand. These delays were concentrated and we'll see later in a larger contract, particularly in Super Yacht and Made-to-measure, where negotiation and decision cycle are typically longer and more complex compared with the composite one.

On top of that, geopolitical uncertainty in the MEA region contributed to slower financing in the quarter. This is reflected in the rolling book-to-bill ratio that temporarily remain below 1%, at around 0.8% for Made-to-measure and Super Yacht and around 0.9%, including composite. At the same time, and this is the point that we want to remark, negotiations remain well above last year level, confirming solid underlying demand across all geographical areas despite longer conversion time.

The backlog remains solid and broadly stable versus prior year, and reflecting the sound order collecting in 2024 and 2025 in Made-to-measure and Super Yacht. Order backlog, as I said before, stood at approximately EUR 1.7 billion at the end of March, in line with December. Instead, net backlog provides clear visibility for the current year with around EUR 470 million allocated to 2026 deliveries. In addition, a meaningful part of the revenue is already secured for the current year, for 2026, amounting to approximately EUR 772 million. And if compare this number with the same situation of prior year, we have a 5% more than 2025.

Overall, the backlog profile continued to support revenues coverage and planning visibility for the year, granting so the visibility and the cash generation of the company. In terms of order intake by segment, the softer order intake that we mentioned before was not uniform across the portfolio. Composite show resilience. We grow year-over-year, supported by seasonal demand in Europe ahead the summer season.

On the other hand, the following -- on the other hand, the Made-to-measure instead was to be compared, was affected by 2 factors. First of all, last year, same quarter, we had the best quarter ever for MEA last -- per MEA region and lower contract conversion in the current quarter due to the regional tension. And I'd like also to remind that our business is made of collecting more or less 200, 250 orders every year with the logic of the cutoff, a couple of units signed in April make the difference.

In Super Yacht instead, the negotiations remain at a good level. Out of the EUR 630 million that I mentioned before, nearly EUR 300 million are related to Super Yacht. And the order intake is also affected by the scarcity of available production slot as the waiting list now extended to the end of 2029, in some cases for the luxury yacht 2030, confirming the strategic relevance of capacity management in this segment.

Analyzing the order intake by geography, Europe remained the most supportive area in the quarter with a sound order mix and more resilient commercial activity. MEA instead was clearly impacted by local geopolitical tension with delayed contract finalization. AMAS instead reflected as is a point that is recurring, a more conscious customer stance with longer decision-making and signing time lines. So in other words, what we analyze about the Americas is it happened the same during the election year.

So when there is some uncertainty, the market continue to discuss, but closing time, conversion time of negotiation is longer and longer. We had this experience last year at Q4 2024 with a good result in the following quarter when the election was completed, and we expect something similar in this year.

In terms of revenues by segment, we see that the revenues were supported by the existing backlog. And as a result, the year-on-year decline in revenues was much more limited compared to the reduction in quarterly order intake. In particular, Super Yacht revenues delivered double-digit growth of around 20%, reflecting the solid backlog, the support of the backlog. At the same time, the overall revenue decline was around 8% year-on-year, showing the cushion effect of the backlog on quarterly deliveries.

Moving our focus on profitability. Adjusted EBITDA, as I mentioned before, remain resilient with margins slightly improving year-on-year, supported by an improved backlog mix and continued cost discipline. And the net -- the same trend has been seen on net profit, reflecting the lower volume environment.

Talking about CapEx. CapEx in the quarter remained quite selective and strategically focused at around EUR 13 million with roughly 2/3 allocated to new product development. We strongly believe in the power of renewing, keeping update, keeping at the state-of-the-art our product portfolio because it has been paid off in the last year. And this is confirmed this fact is the investment of just EUR 13 million, the group disciplined approach to capital allocation and with maintenance CapEx and cash conversion remain under control.

And what do we expect? As we mentioned several times before, that this is reflected the completion of the main capacity expansion cycle carried out in prior year, you see '23, '24 and partially '25 with CapEx now moving into a normalization phase that is expecting to remain below 6% of the revenues in 2026 and most likely in the following year without taking into consideration any M&A.

About the cash flow and net financial position, Q1 usually is typically characterized by seasonal cash absorption related to composite buildup ahead of the European summer season. And in Q1, as I mentioned before, we also saw some delays in order collection, resulting in a lower level of down payment and stage payment. So in addition, we had also some delivery postponement linked to geopolitical tension in Middle East region. So in other words, some customers belonging to this area asked us to postpone the delivery in this area, and we fully understand the desire, and this is a situation that now is solving step by step.

And all these elements together drove temporary cash absorption in the quarter. We are expecting an improvement in Q2, which you see also last year, we had usually the second quarter is a quarter where this company generates cash, supported by the start of the delivery season. So despite this temporary absorption, the net financial position remained positive at around EUR 18 million.

Final remarks of this call, but before to provide final remarks, as every year after the Q1, we provide the annual guidance. The guidance set out expected net revenues in the range of approximately EUR 1.250 billion, EUR 1.265 billion and adjusted EBITDA in the range approximately EUR 203 million, EUR 210 million and adjusted EBITDA margin between 16.2% and 16.6%. CapEx is expected in the range of approximately EUR 70 million, EUR 75 million, but is currently under revision. The guidance is framed around our current backlog and expected delivery schedule, while acknowledging that timing dynamics can be influencing phasing through the year, but we are confident to provide this guidance.

Final remarks before to step down and leave the floor to Stassi. Negotiation in place -- just to summarize our point, negotiation in place reached a record level. So the demand is there. And we -- now we have to be focused in converting the negotiation into order. Europe remain a key growth driver, and we'll see the next effect with the Venice Boat Show that will start in a few days.

Other point regarding financial communication is important to remark that with the appointment of the new Board of Directors, the company is entering a new phase of strategy development. The management is already working with the Board to define a new business plan that will set the priorities and grow ambition for the next phase. And an updated strategy will be formally presented to the market through a Capital Market Day by the end of 2026.

Thank you so much. Stassi, the floor is yours.

Thank you, Marco. Look, it's clear that Q1 was softer than what we would have wanted. It is equally clear that we are all confident that this is something that we are going to be catching up over the next coming quarters. Confidence, however, should not be confused with complacency. We're already now putting actions in place, following up with customers, reviewing our invisible costs, and we are going to work very hard together to develop both the short-term, midterm and long-term plans to make sure that we deliver against our commitments. Thank you very much.

Thank you for listening to our first quarter 2026 results presentation. We are now ready to start the Q&A session. We will start by live question and later move to the written question. The first question is from Emanuele Gallazzi from Equita.

I actually have 3 questions. The first one is for Mr. Anastassov, if I may. First of all, thank you for your presentation. I know it's very early. But can you share with us your, let's say, initial thoughts on the yachting industry momentum and let's say, the very first strategic aspect that you would like to start working on, I don't know if it's distribution, new model, brand development or cost control.

The second one is on the order intake. Clearly, in the first quarter, the order intake was weak. You mentioned a high level of negotiation. Can you just give us a sense on how the order intake has evolved in April and early May? And how confident you are on converting the current negotiation in actual orders in this environment?

And the last one is for Marco. The net working capital was over 20% of sales in the first quarter. How do you see it evolving through the year?

Thank you. Well, on the first question, the -- a business is a business. And ultimately, people buy a combination of a brand and a technological performance. That in itself is not very different from many other businesses. So there, we really need to make sure that there are some short-term actions and obviously, some longer-term actions. But the shorter-term actions are delivery, timing, how do we make sure that we reassure some of our customers about the stability of the company to turn this backlog into numbers that are going to be visible in our next presentation.

Clearly, my short-term focus is on converting all these discussions and negotiations into actual orders. That is -- and also it's driven by the season, as you can see that we do have the next coming 2, 3 months that are dictating my agenda and my travel plan. In parallel, I will be looking at what goes below the so-called iceberg, meaning the cost structure, platform thinking between the brands, have we really exhausted those opportunities? And what are the decisions we need to make today that will be impacting our product and range in the next coming 24 to 48 months cycle. Is that -- I hope that, that answers that priority.

On the second priority -- on the second question was, I think Marco should take that as well.

Order intake. So Emanuele, order intake, what is our guess for next quarter? I can tell you that April was not bad if compared with prior year, with April last year. And currently, May, we have a significant number of negotiations currently under discussion and hopefully in conversion already in May. Again, with Stassi on board, it is our priority to go and meet personally many of this negotiation in place, especially for mid and bigger sites both in order to speed up this process.

Last point about net working capital. Yes, net working capital has been affected, okay. I explained you before the seasonality first. But on top of that, the seasonality was affected by 2 points. One is what we don't want to hide the elephant in the room. So lower order intake. Lower order intake means lower the payment. Then payment, I explained several times that we consider order at least not only contract signed, but must be secured by a nonrefundable deposit of at least 10%. So you can close also this gap with it. And on top of that, the postponement requested by some Middle East customers that for sure, we wanted to make them happy. And now step-by-step, we resolved it. Again, it's something unexpected due to the slowdown of the order intake, but we are confident to bring this figure again ranging between 12% and 16% across the year, but in the very short term.

The next question is from Adrien Duverger from Goldman Sachs.

So Adrien Duverger from Goldman Sachs. My first question would be for you, Mr. Anastassov. So what has surprised you the most since joining the business? Obviously, I know it's still very early days, but hopefully, you had the opportunity to start getting a better understanding. What do you currently see as your top priority? Is it the U.S. market? And what actions can you take to improve the order intake? And my second question would be on the EBITDA margin guidance that you provided today. What are the different building blocks? And what can we expect in the outer years?

Thank you very much. Well, it's very interesting that the most surprising thing to me was not in the actual product or category, but in the customer base, we're talking about a couple of hundred of products that are being sold per year compared to the couple of hundred millions of products that are in the FMCG industry. So every -- so the whole commercial process is the one that is at the heart of this company. How to delight, how do we convert a high net worth individual that is aspiring to have one of our beautiful products not only to an initial purchaser, but to a repeat purchaser that stays with our franchise and evolves with us over time and ideally buys even more than one vessel.

And this is why also when Marco talks to you about the numbers, sometimes 1 closed deal or 2 would have changed totally the presentation of today. And yes, there is a sub-question in your first question, which is about the U.S. I understand and I agree that the current share of the U.S. business of the total franchise today is something that is a significant opportunity. It's way too early for me to understand exactly what is driving that lower than my expectations number.

I believe it is usually a combination of slightly different taste in terms of what are the requirements from a yacht and how it's being used in the U.S. to also our ability to serve and identify also a growing number of high net worth individuals in the U.S. So it's both understanding what they really want and how we can adapt our portfolio to better meet their needs.

As you know, maybe at Procter & Gamble, we call this consumer is boss. So we need to understand what the boss wants, but also how do we actually penetrate that segment and market ourselves in that segment in the U.S. that may be different than what we have come to become comfortable with in Europe with Monaco, the boat shows and so on. There are different touch points that we need to understand. But as you said, it's a bit too early for me to give you a definite answer. Thank you.

And about EBITDA, we reported 16.1% that is higher than 10 basis points -- by 10 basis points versus prior year, and we provide a guidance to be in between 16.2% and 16.6%. The rationale behind our guidance are the mix because we continue to generate -- we expect to generate more and more revenues in the most profitable segment that are high composite and Made-to-measure together coupled with branded Super Yacht first.

We expect, thanks to the market dynamics to get some more favorable condition in procurement and to continue to leverage on fixed cost absorption. It is one of our winning point of the prior year. And again, as we did last year, and we never give up, a very focused cost discipline on SG&A. So that's the rationale behind the guidance between 16.2% and 16.6%. I hope it's clear.

The next question is from Carmen Novel from Akros.

I just have a quick one on governance, if I may. We recently read some articles on the newspaper about some comments made by KKCG on the shareholders' meeting of last week. I was wondering if you can give us some comments or color on that, if you can.

Is this directed to me?

Yes.

Could you specify -- there have been a lot of articles and what specifically is it that you are wondering and that will help me answer.

I mean a bit in general -- sorry, I hear my voice in the audio.

We hear you very well, by the way.

Okay. A bit in general on the comments about, I mean, the management of the shareholder meeting and yes, about the potential strategy that you can implement in the future years. And yes, a bit in general, a bit on color on that, if you can.

Sure. Look, I see my role as running the company and delighting our customers and our shareholders based on the results. So my role is not political in any way, but I'll give you -- I will give it a try. If you have had a shareholder for 14 years and a leadership team and CEO for 12 years, that shows a lot of stability. And the only thing that has changed is that there is a new CEO.

From a governance standpoint, I think I've had now the chance to meet our Board. We probably have the most -- the Board with the largest number of independent Board members. They're all great professional people. The majority shareholder has invested in the business 14 years ago when the business was not doing well and put in capital and resources in making Ferretti what it is today. And the previous management team led by the CEO, had the chance to do this for 12 years.

So I do not necessarily from my vantage point, see anything different or anything that would worry whether that's a customer considering to buy a boat from us or anybody else. But as I said, that's my take from it. My job is to deliver the results and to inform you about our outlook in the most fair and honest way. The rest, I will leave it to our shareholders to sort out.

The next question is from Chiara Tomesani from UBS.

I have 3. The first one is on the CapEx guidance. And I wanted to ask if you could provide more color on the split between growth and maintenance CapEx. My second question is on the current pricing environment. And I'd like to ask if there has been any changes since the 2, 3 percentage point mentioned at full year results? And my third and last question is on demand dynamics. And I'd like to ask whether any orders have been canceled or postponed? Or is this just the buying decision that is being delayed?

About the CapEx guidance, as we mentioned in our guidance, we believe that this year, we'll spend between EUR 70 million and EUR 75 million. Most of them will be focused in R&D just following the trend of the first quarter. So we have more than 60 models in our product portfolio. We are planning to introduce, as usual, something between 3 and 4 models that have been decided 3, 4 years ago, and now they are ready to enter into the market, and we are preparing for the next generation model.

And meanwhile, we are refreshing. So we are talking about restyling, facelift, technological update of some models. This is the backbone of the CapEx that we think to spend in 2026. The residual 1/3 is just ordinary maintenance or small expansion of our current facility. Now our occupancy, the utilization of our facility is about 80%. So we don't need additional CapEx on production capacity. Maybe it's something that we have to think about the Super Yacht, but it's not for sure for 2026.

The second one, it was about the pricing environment, right?

Yes, correct.

Okay. So what's happened is nothing has been changed from 2025. For both product over 30 meters, so I'm speaking about Made-to-measure and Super Yacht, competition is not on pricing. We are still fighting with the other 3, in some cases, 4 competitors in this segment, but usually it's not on pricing. What we see in pricing is something that has already happened in 2025 for the entry-level model, so boat below 24 meter, 80 foot. There are still some competitors, especially the British one that are continuing to be quite aggressive into the market with very, very aggressive pricing.

But in our -- as we already said last year, we do prefer to slow down our production rate and not to enter in this kind of competition because it's very, very easy to provide a discount in order to sell some more units, but then to recover the marginality and the prices it takes years. So we don't want to enter in this kind of competition. In fact, also in consideration that discounting policy cannot last forever. Sooner or later, when they have finished the inventory, for sure, they have to stop this process. And on top of that, according to our current strategy, we wanted to be more and more focused in the most profitable segment. So the composite Made-to-measure and branded Super Yacht. So we wanted to skip this kind of competition.

If I may add, it's very easy to destroy a brand. And the first and surest way to destroy a brand is by starting to discount it in the face of competitive pressure. So we need to really be careful. We cannot be commercially ignorant, but we need to be very careful to be guided by what competition is doing and instead find ways to delight our customers with our toolbox, which should be a superior quality and superior design so that we, in reality, would not have a directly competitive offering. But clearly, we would not be considering to enter the game of the discounting. That is not the right way. And I'm fully aligned with the long-term management and guidance of my predecessors on this point.

Last point instead was about order cancellation, if any, right?

Yes, please.

Okay. Nothing has been changed in our business, at least in our company, we don't see any cancellation or they were very rare. We are talking about 3, 4 per year in the last 5 years and no cancellation till now. I wanted to remind that it's according to our selling approach, as I mentioned before, when someone is signing an order, he has to deposit a nonrefundable deposit of at least 10% and then following some stage payment. If a customer decided to step down, he loses at least the nonrefundable deposit plus the reselling cost of selling his boat. So in many cases, and it could happen that the customer decided to change idea and to step down this process better for him to take deliveries and then to resell it by himself once delivery is done. So that's the reason we are quite protecting as business model from this kind of event.

The next question is from Niccolò Storer from Kepler. Okay. He disappeared. So the next question is from Michael Niedzielski from Roce Capital.

I have a question for the new team. Can you please give us your thoughts on the company's free cash flow generation over the years? Because if we look at the past 8 years, Ferretti generated about EUR 964 million of cumulative EBITDA, so close to EUR 1 billion. But then if we look at the free cash flow generation for the same 8 years, it only comes to about EUR 100 million, which implies a very, very weak free cash flow conversion from -- free cash flow to EBITDA conversion of 10%. And we saw again, obviously, Q1 quite weak with close to EUR 100 million negative free cash flow generation, which is beyond the normal seasonal weak Q1.

So a question for the new CEO, have you identified that? And is this going to be a priority for you in the future to make this not only a profitable company on EBITDA and EBIT, but also a company that actually [indiscernible] cash because it has not been the case for the past 8 years, unfortunately, I mean -- and it has become a concern, I believe. And then I have a second question. the management transition was obviously quite brutal. And some shareholders like myself, worry about some of the [indiscernible] client relationships that could be damaged as a result of this unusual transition. So can you give some reassurance on that? That would be helpful.

Thank you so much. Let me start with the second question. This, as I mentioned to you before, is the #1 priority to reassure our current customer base -- but also, let's not forget that no company is one person, and there is a very capable, brilliant team that is behind the results at Ferretti. And that's a team internally, but that's also a team externally.

Having spent the past 72 hours or actually, it's 48 hours with the different people, I do not see a company here in crisis or a company here with people walking the corridors worried. I see people that are incredibly motivated to, as they call it, deliver the season. And all resources available to the company are being put against securing this season and reassuring. This is why, as I mentioned maybe during my comments, I've even spoken to several of our agents and distributors, thereof Lia Riva in Monte Carlo. So we are on it, and we're doing what we can with a great Ferretti team today.

Marco, do you want to take the second question?

Sure. You mentioned the cash flow generation. Okay. Let me recap some points. EBITDA is what you mentioned. On the other hand, CapEx cycle, it was this company needed in order to continue to grow. In 2022, the facility utilization, it was 97% fully occupied. So it was not possible to continue to grow unless this company could make some CapEx in order to expand the production capacity.

So at that time, the company decided to expand our production capacity, thanks to the investment in Ravenna shipyard that provide us an additional 30% additional production capacity plus some expansion in Ancona and also in La Spezia for a total of roughly EUR 380 million in the last 3 years. As I mentioned before, unless some M&A activity that at the moment, we are taking into evaluation, we don't expect from 2026 to have a huge investment. So it should help a lot the cash generation.

Secondly, I don't know if it's good news or bad news in 2024, we completely offset our tax asset. So thanks to the tax losses that this company has generated before the crisis, we accumulate more than EUR 140 million of tax asset. And step by step, we consume it. So in 2024, 2025 and hopefully, in the next year, this company start paying taxes. And dividends, we are already distributing 40% of our consolidated net income. So in a nutshell, these are the main rationale about the cash flow generation. I believe that unless a new CapEx plan, this company could start to convert most of this EBITDA in cash.

Last but not least, working capital. I don't want to skip this. In the starting point that you mentioned was very, very peculiar starting point. At that time, working capital -- let me explain the working capital dynamics. The working capital dynamics of every segment is quite different. For example, in Super Yacht, the working capital is negative because we produce just an order. So it's usually ranging between 0 and minus 10% depending on the stage of construction.

In Made-to-measure, it was neutral because we -- in order to squeeze the production time, we produce in advance without an order and superstructure. So the working capital is neutral. It's ranging between minus 5% and plus 5%. What does really generate the working capital affecting the working capital is the composite segment that usually is ranging between 20% and 30% because we have to produce in advance something ready to be bought by our potential customer. This is practically a normal ideal situation of our business.

Well, if we go back to 2021 and also 2022, we were living with, in my opinion, unrepeatable situation, where the working capital of the composite yacht was negative. So the incredible demand that we received for our order had 2 effects. First of all, to clean up all the inventory that usually we keep on display on the U.S. market. And on top of that, we had a lot of advanced payment also for composite yacht. And this is bringing, if my memory works well, the working capital of the composite segment in a negative field and also the Made-to-measure was extremely negative. So I believe this is something that I don't believe we can repeat. What we have to work with is to be quite careful in CapEx activity and to be more focused in generating EBITDA. I hope it's clear.

I just wanted to -- because your question was, is it on my radar screen? The answer is yes. Is it important? The answer is yes. And are we going to look at different options that we have? The answer is yes. So it's a very good question.

I mean I'll say one thing is I appreciate there was Ravenna and the other expansion plan, which costs EUR 350 million over 3 years or 4 years. But even if we adjust for that -- the free cash flow generation over the past 8 years, EUR 100 million to EUR 450 million versus an EBITDA of about EUR 1 billion. So even if we adjust for that, the free cash flow conversion wasn't great. And you're right. I mean, a lot of it came to working capital and the working capital dynamics.

I mean, I understand there are moving parts with composites, very different dynamics than the bigger boats. But yes, if there could be some focus on this and just generation in general, I think that would be great. And just you said there would be a normalization of working capital after the Q1, which was quite weak. Can you perhaps give us a sense of where you would want Q2, working capital as a percentage of sales, Q2 roughly?

I believe that we -- usually, we bring in Q2 in the range between 12%, 14%. The normal -- usually, our company is reacting immediately to the working capital by adjusting production outflow. And so it's a company that usually react quite well. So I believe we should be in this range.

12% to 14% end of Q2?

Yes.

We have one last question from Niccolò Storer.

Okay. Actually, a follow-up to Emanuele's question on working capital. Is it possible to quantify the amount of higher working capital, which was due to the mentioned delivery postponements to Middle Eastern client. I mean, was it a big portion of the EUR 100 million, if I may, right calculation buildup you had in Q1?

Niccolò, it was about EUR 20 million now fully collected.

We have no more questions. So thank you again for following our results, and have a good day.

Thank you. Bye.

Good afternoon, everyone, and welcome to Ferretti Group 2025 Preliminary Results Webinar. Thank you all for joining us. We appreciate your time and interest in Ferretti Group as we share an overview of our performance over the past year and discuss the outlook for the future. Before we begin, let me introduce our speakers. Mr. Alberto Galassi, our Chief Executive Officer; Mr. Marco Zammarchi, our Chief Financial Officer; and myself, Head of Investor Relations and Sustainability.

Today's agenda will cover key highlights from 2025, business dynamics, financial results and final remarks, followed by a Q&A session. [Operator Instructions] With that, let me hand it over to Mr. Galassi. Mr. Galassi, the floor is yours.

Thank you so much. Good afternoon, everybody. Jarigo. I'm very pleased, honestly, very, very pleased to confirm that Ferretti Group fully achieved the guidance across all metrics. And we are presenting today to our investors, to our supporters, to our stakeholders, the highest level of revenues and margins ever since this management took the responsibility of managing this company in 2014. Adjusted EBITDA grew by 6.7% versus last year. And EBITDA -- adjusted EBITDA margin 30 basis points.

So we are at 16.5% from 16.2% of last year. Revenues grew new boats without pre-owned of 5%. By the way, we will have a look slightly after, and you will see that the market did not grow at all, 5%, EUR 1.232 billion versus EUR 1,173 billion. And the order backlog, which I'm very proud to say is an incredible number is EUR 1.76 billion, 3.1% versus previous year. Now let's have a general look on how the year started. We do some selected boat shows.

We don't limit our participation on only the most important ones. But there are 2 boat shows that give us a flavor on how the year is beginning, the start of 2026, there is Dusseldorf boat Show and Miami boat show. So high-quality level of clients and our profile. So we had less visitors, but we had more visitors with quality that do own a boat. So the interest of visitors that do own a boat in Miami was plus 16%. So boat owners coming to see us. And in Dusseldorf, it was 2% higher than the previous year. So it's an interesting figure because it tells that selected owners, which have a real interest and potential real prospects are coming to see what's new in the market.

Now as I said before, Ferretti Group grew by 5%, but the market did not. This is Phil Draper Associates as an external provider of data based on the third quarter 2025 and on the full year 2025 estimates is telling us that despite the growth in the market has been, I would say, often and stable from '21 to '24, it has been always a buyer digit.

In '25, it decreased by 3.1%. This digit is driven by -- the measure is the value of production. So from EUR 7.2 billion of 2024 to EUR 7 billion of 2025. Ferretti Group, as I said before, outperformed because we grew 5% in '25 versus '24. Have a look though on how the market changed in '25 versus '24. The gray line is describing the boats above 30 meters, what we call high end -- what we call made-to-measure in Ferretti Group.

And the other one is describing the boats below 30 meters. So you've seen that the market decreased in the small segment. There's been an increase that basically nearly neutralized the decrease. The decrease on the made-to-measure nearly neutralize the decrease on the other segments. But there is a message here. The message here, you have to compete and you have to play in the arena where the wealth is, where the customers are, where the customers are less impacted by whatever happens in the war.

And we didn't miss anything. We had 2, 3 wars, 1 pandemic and the tariffs in and out. So the message is if you're well positioned and we go to see what our competitors do, and let's benchmark a little bit, there is no problem at all.

So Ferretti Group is #1 in the most profitable segments. But the most important digit is we have in the global market, value production from 30 feet up to 100 feet in fiberglass and carbon fiber. This data excludes Super yacht. It could be dramatically misleading, of course, a super yacht in this. We have 16.8%, plus 2.3%. Azimut-Benetti decreased 0.3%, Sanlorenzo increased 0.9%, the British shippers are suffering a lot.

Sun Princess is decreasing 0.7%; Sunseeker 1.8%. Now where do we want to be leader? We want to be leader in the most profitable segments. Okay. We have everything that flows from 9 meters to 95. So we are also in the segment from 30 to 60 feet. But we don't want to be #1 in that segment. To be #1 in that segment, there's no money there. Let's be honest. It's entry level. It's interesting when you attract customers and prospects.

You want to be there only if you have the best brands in the world, which according to the market is Riva and Wally, where you can sell a 30-footer for EUR 1 million. You can sell a 38-footer for EUR 1.5 million. This is where we want to be. And by definition, by design, we don't want to be the top player there. Still, in the other segment from 60 to 80 foot -- feet, we are #1 exactly with Azimut-Benetti with 12.9% of the market.

The source is still the same. I mean, it's not our data. And where do we are very proud that we are leaders in the high composite yachts from 80% to 99. We have 27.1% there and 22.8% in the made-to-measure, which is from 100 feet above. Now I'm very proud to show you one slide, which makes us the biggest differentiator between Ferretti Group and all the other competitors. As you can see, we have -- where we're catering our sales.

So repeating clients repetitive clients in 2024, they were 44% of our clients. Now in 2025, the repetitive clients are 49%, but the most important data is that among between the 49% of repetitive clients, 47%, so nearly half of the 49% are cross-selling across brands. They buy from one brand from Ferretti to Riva, from Pershing to Custom Lime or they may have more than one boat.

Why I want to highlight this that makes us unique. First of all, because the number is growing from 4%, 40%, 49%, 49% of our sales, we basket, we fish in our, I would say, own lake. And that's -- nobody else has it. The other clients, as you can see in the gray, are coming from competitors. We attracted more clients than the previous year from the competition. 27% of our clients in 2025 are coming from the competitors. And there is a data which is diminishing.

New clients, first owners. Why? Because the market of the small boats diminished because the market of the newcomers is diminished. I mean if you have the problem of the tariffs, if you have the problem of the war, if you're worried about your own business, are you really thinking to change a boat and enter into the entry-level segment?

No, we have to have our clients and proudly, I can say that 47%, they buy from Ferretti Group cross-selling and 49% they come and stay in the group, but because we do know that our clients are the ones which are less affected than all by whatever changes in the world as we speak.

We kept investing. We kept launching models. We kept renewing the fleet. We splashed 13 new models. Now anytime you see Super next to Riva, it means there's an evolution, a face lifting an update, a mid-life update of the program.

We presented the Riva Iseo Super, 1 unit sold. We presented the Dolcevita Super after more than 30 Dolcevita, which is a 33 meters boat. We sold 9 units of its restyling, the Dolcevita Super. Aquariva, I don't know how many boats, maybe 300 nearly Aquariva were done, the special version, 17 units on the market.

Okay, let me repeat, this is a boat about EUR 1 million and is a 33-footer. Riva 58 Capri, very proud of telling you that the Super Yacht division is doing very well with 54 Riva, 54 meters. We sold 4 units, price tag above EUR 30 million. And then we did another limited edition. Riva is the only brand that can afford to do a limited edition, a special edition Riva. The Cento celebrated the 100 units of the 38, which is the derivative boat.

We sold 11 units up to today. Today, the Board approved the sale of the last one, the 12 unit. So the entire production is gone. It's a EUR 1.5 million boat, very, very unique for a 38-footer. We also started the relaunching of the new ITAA fleet. It's a brand that has been hidden and in a niche of the niche for too many years. The new 54 is in the market. We sold 4 units.

The GTX70, the entry level of the sport utility yacht, what we call the SUY of Pershing, it's coming with 4 units sold, very brand-new successful Ferretti 720 and Ferretti 940, more than 27 meters boat. We sold 10 units, 3800, 24 meters boat, we sold 12 units. Also in the Super yacht divisions, we went very well splashing and delivering successfully AMOR À VIDA, a 67-meter boat in steel aluminum. And we enter into what Ferretti calls the Corse Clienti..

The race is the competition for the clients with the brand Wally. We had the wallyrocket, and now we have the wallyrocket expansion, which is the 71-footer with 1 unit sold. What's going to happen in 2025, we announced 2 projects that will be splashed this year in '26's the new range of the Custom line. Custom line, let me remind you, is the made-to-measure brand for excellence.

It's built in Ancona , more than 19 splashes every year, average price tag, EUR 15 million, EUR 16 million, EUR 18 million. So the new line site, which means Lightning in Italiano, is the planning yacht, the brand-new 128, we sold 2 units. And the Custom line Navetta 35, which is a smaller sister ship of the Navetta 38 with more than 8 units sold with 2 units sold of the Navetta 35s a EUR 15 million ship. The financial results are super solid, as we said. Margherita, you want to do it? Or do you want me to...

No, no. Thank you, Mr. Galassi. So let's start with order backlog. Order backlog increased double digit from September to December, EUR 14.5 billion and the net backlog increased from last year. This outstanding result reflects the order intake, especially in the Made-to-measure that we will see in a few minutes. Also, the backlog -- the net backlog this year provides greater visibility over 2026 revenues compared to last year. Last year, we had EUR 534 million in 2025, whereas this year, we have EUR 613 million in 2026.

This also reflects the mix with many super yachts taken last year and Made-to-measure. Also, we collected 1.137 orders corresponding to 214 units while we delivered EUR 225 million. This demonstrates once again, we are shifting towards larger-sized models.

Also, the average ticket increase from last year, moving from EUR 4.6 million 2024 to EUR 5.1 million in 2025. If we look at the order intake, the order intake has been in line with last year. Despite the lack of super yacht, we only took 2 super yachts branded in 2025 compared to the 5 super yacht of last year.

So this is a really outstanding results, and it's all thanks to the made-to-measure and the large composite. If we look at the order intake per quarter, you can see that the second quarter, if you recall, has been tough because of the tariff and the war in the Middle East. The clients were distracted.

April was a very bad month. And then the second half of the year was a lot better, clients coming back, more confident, and we had a very good season in the Mediterranean as well as in the U.S. The book-to-bill remains above 1. And if we include the composite, it is just below 1. As of today, we still have a very high level of negotiation, including Super yacht, it's EUR 580 million, so higher than what we had in the last quarter.

If we look at the order intake per segment, again, you can see the excellent product mix, the explosion of the made-to-measure, plus 47%. And if you look at the result quarter-on-quarter, you can see it's plus 98%. So this is all thanks to the strategy to the new models that we've been launching year after year into this segment that finally is giving its results.

We also had a good performance of the composite yacht with more than half of the models coming from units above 80. Super yacht, as I mentioned before, this year, we sold 2 branded super yacht, while last year, we sold 3 branded super yacht and 2 bespoke.

This is again demonstrates that our business model that is based on 3 segments on an offer that goes from 8 meters to 95 is the winner because you cannot predict exactly when you will sell a super yacht. It's more volatile than other kind of yacht. And so this year that we had only 2 super yachts, still, we were able to keep the same level of the order intake as last year.

Let me highlight something here, if I may. The business model that is driven by having 7 brands, none of them overlapping with each other, gives us a super strength. I remember when we listed first, one competitor, which we respect was saying that the power of having one single brand and focus on a single brand is more important than having more brands. I would say the market is telling exactly the opposite. Because clients are different, generations are different, taste is different. Continents and kind of usage of boats are different. You can't have the same brand and you cannot label all different kind of products with the same brand because you lose the identity of one brand, you need to have a differentiator. Of course, it's complicated, avoiding the overlapping implies different designers, different architects, different sales force, different sales network, but it's paying off absolutely. And I'm pleased to see that also our competitors are adding brands to the group because otherwise, there is no chance.

We would have lost many sales if we had only one brand. The second message I'm giving to the audience is big doesn't mean you're safe. I mean, super yacht only, there's been another company which we do not consider a competitor, who has been saying that we play in a different arena. We play super big, we play super yacht, and we are basically immune by anything that happens in the world.

Our recent news that we read that is not true. It depends on how you work, how you position yourself, how you calculate your cost, how you calculate your margin, how disciplined you are in the managing of the company? And how do you position your product? You know many times, we should have had maybe 3, 4 super yachts sold this year if we just accepted terms and conditions, which were totally unacceptable for the profitability and for the profitability range of this company, maybe 3. I would say easily, Marco, 3. We left the conversation. We said, "Goodbye, arrivederci. We don’t need your money. We don’t need your cash. We don't -- we are not here to sell discounts. We are here to sell ships.

So Ferretti Group has a unique capacity of selling only with the profitability, not selling below cost. No need to sell to survive, no debt. And more important, we are in any possible country, 70 countries with many different products, many different brands to attract a completely different but extremely loyal client. Sorry, Margherita, if I interrupted you.

Thank you. So let's have a look at the order intake by geography. You can see we have a good performance in Europe. Middle East was affected again by Super Yacht. Last year, we had 3 Super Yachts only from this region. So that's the main difference. And the Americas performed very well. And again, if you think about Americas last year, we had a Super Yacht, which we didn't have this year. And still, we increased plus 22% by a mix of made-to-measure and large composite. So now I'll hand the microphone over to Mr. Zammarchi for the revenues.

Good afternoon, everybody. Revenues, we increased, as we said, 5% versus prior year. The major contribution to this growth was provided by the backlog and namely by the super yacht the super yacht and the Made-to-Measure that we were able to more than compensate the shortfall of the composite yacht. On the other hand, have you seen previously that the order of composite yach continue to grow. So we'll provide additional revenues in 2026.

As we said, a growth of 5%. And on top of that, additional EUR 50 million were provided by the sales of preowned business that for us is a marketing tool, and it's good to provide additional sales. In terms of profitability, instead, we were able to grant a continuous growth of 30 basis points.

And this happened in an environment not so easy because of the price -- the pressure on pricing generated by some competitors, especially on the composite segment. But thanks to the product mix, so more focus on made-to-measure and branded super yacht, coupled with a very careful cost discipline, we were able to continue to grow. And what make us happy is that we see this trend following also for 2026. In terms of CapEx, instead, we were aligned with guidance to be closer to EUR 90 million. What we'd like to highlight is 2 points. First of all, that more than 50% of the CapEx were devoted to R&D. So to launch a new model into the market or to restyle -- make restyling of some existing model because this is outcome of the best boost that we have in our company.

And the second one, it was to complete the increase of production capacity. Now Ravenna Plant has been completed, almost completed. And the overall utilization of our shipyard is 76.5%. And so that means, in other words, that for the next 3 years, I mean, the next 3, 4 years, we -- to continue to grow our company doesn't need a significant cash requirement. So in terms of net financial position, as planned, we are -- we closed the year over EUR 100 million of net financial position, to be precise, EUR 111 million.

This factor was supported by the American seasonal deliveries and also thanks to the collection of advanced payment of the good order intake of the last quarter. As a fact, also the net working capital ratio was decreased to 13.1%, not very closer to the target that we have in mind to be 12.5%, but I believe we are in a good pace to be achieved in 2026. So Mr. Galassi, I believe the final remarks is to you.

Thank you very much. Okay. What is the picture that we have in front of us that we had in 2025? Let's spend a few words on '25, and then let me give you a flavor of the first 2 months of '26. First of all, client trust remained with Ferretti Group, its effect. If you -- otherwise, you don't have 49% of sales coming from recurring customers.

Two, after a second quarter, which was very low, I think we were below EUR 200 million, I think it was EUR 196 million of revenues. If you consider that, that number has been overtaken by 2x in the second and the third -- in the third and the fourth quarter, you understand the superpower of the biggest enemy that we have in Ferretti Group, which is uncertainty.

The message that we are reading here is the clients were in love with us. The clients' attention has been diverted by top priorities, which we too fully understand, no matter which kind of business you are in, driven by the tariffs application and how the entity and the size and the magnitude of it, everybody in the world was affected, no matter if you sell in 70 countries or in 2, no matter which kind of business you're in, you are affected. Your attention is diverted. But once we manage and we live and we cope, we find a way of understanding that it's manageable. There's going to be still life in the planet after the applications of the tariffs. Well, the clients came back. They didn't go everywhere.

They came back in Ferretti Group. They came back in one other competitor that we have, respectfully, but they didn't go everywhere else. So the market is a little bit shrinking, yes, on absolute numbers. The market is very selective. Absolutely, yes. Money, one day wisdom Warren Buffett told me, Money, Alberto, don't forget, Money has fear. And they don't fear to invest in Ferretti Group their money because they know we will deliver their boats on time with the best possible quality and the best possible brands in the world.

Now what is the feeling in 2026? America super well. The beginning of January was very, very good. Dusseldorf, some good signals. Middle East, extremely well. And finally, and luckily, we didn't spend much on the weakness that we had in 2024 and 2025. We had the weakness, which was Asia Pacific. I cannot accept personally that Asia Pacific is representing a fraction of our revenues and a fraction of our order intake, considering the amount of wealth, which is in Asia Pacific. We know that Asia Pacific is mainly driven by Greater China, but we have to understand and consider there are some other countries which are Indonesia, Malaysia, Singapore, Thailand, New Zealand, Australia, Japan, Korea, Taiwan, that can support. So I think Ferretti Group will make important investments over there.

We do believe there's room for improvement. And we are feeling as we speak, there is room for improvement and some improvement coming from there. Back to United States, we had a very good start. Now tariffs are still the headline of the breaking news. We were used to 15% of tariffs if somebody wants to ask because it's always been 15% actually, in our case, it's 16.5%. So it's not changing for us, but still attention is going to be diverted.

As attention is going to be averted, what's happen whatever happens in Mexico for the United States and American market. So this is what is the flavor I'm giving you as an optimistic flavor, positive flavor in a shrinking market unless you are well positioned, well brand and you feel you are considered a safe harbor for the investors -- and sorry, for the owners and the clients to invest, buying their boat buying your boats. The presence is the most profitable segment. When you have 54% of full year '25 order intake, which are coming from the made-to-measure segment from 30 meters to 45 meters in fiberglass, well, the strategy of the CapEx cycle is absolutely paying off. So this is the bread and butter for this company. And last year, it was 36% only.

And if you consider also the over 50% of the new orders in the composite segment in general are coming from yachts, which are larger than 80 feet, so larger than 24 meters is a strong signal that our strategy is well planned and extremely well executed. The business model is unique. As I said, we have a wide offer, a completely different brand identity. We have 7 brands not overlapping.

We attract clients which are 19 years old, young pop star, idles to top entrepreneurs, royal families in all over the world. And this is a super strength of Ferretti Group. Let me also remind you as a final important message for the investors.

I mean, there's been a constant growth in Ferretti Group since this management team, myself, Marco, some others are still with us, Giordano Pellacani, some others left. We started all this in 2014. And in 2025, we can tell you that from EUR 281 million of revenues, the company is EUR 1.23 billion of revenues with a market cap today, and I'm proud finally realizing that the market is appreciating our effort and the beauty of this group around EUR 1.3 billion.

So -- but the growth is not -- this message is not here to say, okay, you were bra, you were executed, you are disciplined. No. The message is look at the positioning operating group in the market above 80 feet.

We had only 13%, and now we have 25%. And below 80 feet, we had 5%, and now we are 9%. We grow where it's important to grow. One more thing, very important, this has been done only organic. There's not been any acquisition apart from the brand Wally. There was just the brand. There was no facility. There was no market, no contracts. We just started in 2019 with the brand Wally, and this is where the group is. Now if you ask me for the future, well, do I see this going this way?

Well, I think the group, it's really, really urgent time for M&A because this group will grow with M&A. Now there are incredible opportunities. Now the market is reasonable. Now the prices are back to planet earth. I think it's the year 2026 for acquisition and growing not only organically. So there's a lot of work to be done still to provide satisfaction and to provide value to the investors and shareholders. Thank you very much.

Thank you for listening. We reached the Q&A session. [Operator Instructions] The first question is from Emanuele Gallazzi from Equita.

I have 2. The first one is on the boat show already held in the first quarter. You have already provided some color, but can you just discuss a little bit more about client engagement and whether you have seen any change in buyer behavior compared to last year? And in addition, if you can provide some details about the order intake in January and February, so for this beginning of the year.

The second question is on the governance. Clearly, full year '25 results mark another step in the transformation journey that you have started over a decade ago. But with the upcoming renewal of the Board of Directors, should we look at this phase as a, let's say, a continuation of the current strategy? Or will this represent the beginning of a new chapter for Ferretti?

Okay. On the first one, the boat shows, as I said before, less people, less curiosity, more potential prospects. United States, America went very, very well, 16% boat owners plus more than previous year and important contracts that we signed also important boats. Dusseldorf was more stable, but we signed contracts there. Now I don't know whether I can disclose or not the numbers of the contracts in January and February.

I can tell you, January is very, very happy. February, I was very happy. Then there is, again, another -- the word that is sort of a nightmare, like a sword on my head, tariffs again. Now one client called us yesterday and he said, what if -- why should I buy a boat from you today with 15% tariffs?

If tomorrow -- and I have the Chief Commercial Officer next to me, Giordano Pellacani there because he just reported that it's true. If tomorrow, there's no tariffs at all, why should I give up a 15% discount? Now think about the automotive business for a second. From 10%, if I'm not mistaken, they go to 15%. who's going to take care of the extra 5%. So again, we're going to lose a week before we understand, we don't understand what's going on. I don't think it's going to change much. For us, 15% is 15%. But if I have to give you the flavor, anything, anything that implies what is going to happen to my value, to my contract, to my final price is going to delay the process.

So what I'm expecting as we speak, I'm expecting the month of February to be delayed by decision-making process by what's going to happen in the next 1, 2, 3 weeks. So to answer properly to your question, January was very good. February was in line with our expectations. The second half of February, the last week of February, if I'm not -- I don't -- and I want to be optimistic, hopefully, to have a final solution at the beginning of March, will be, for sure, impacted, especially for the U.S. market, by which kind of tariffs am I going to pay?

Why should I pay if I can avoid to pay. This is basically -- we're talking about millions euro. Don't forget, Ferretti average price tag is EUR 6.1 million, excluding Super yacht. So it's a serious digit that clients, and I do fully understand are asking lawyers, what should I do? What do you recommend me to do? So the process takes a little bit longer. The rest of the world, especially Middle East, is going very, very well. As I said, there's a little bit of life back. Asia Pacific was ridiculous, EUR 24 million of order intake in 2025. I mean, Italy only is around EUR 100 million. So unacceptable. So that has to change and will change. And as we speak, there's a board shows season there, it's changing. Back on the governance.

Well, we all know, we call it in Italiano, the Pulcinella secret, the secret that everybody knows. The expiration of the entire Board of Directors will be with the shareholders' meeting of May 14, 2026. Well, there's a lot of things to do in this company. There's a lot of room to go and create better value. We, as management, are available, of course, but the decision has to be taken by the shareholders' meeting.

And don't forget, whatever decision the shareholders' meeting takes is fully respected. So we did an incredible journey. It's been fantastic. Are we ready to do another journey? The answer is, obviously, yes, who's going to leave this company. Unless you're insane, you don't leave this company. If you leave this company, you leave the industry and you go elsewhere. But it's a decision that the shareholders' meeting has to take.

The second question is from Adrien Duverger from Goldman Sachs.

Maybe one to start that's a bit more big picture. So in 2025, we saw that the composite market suffered a bit much -- a bit more than the made-to-measure. Do you think this is a trend that we can expect to continue? Or do you think this was more a one-off due, for example, to the consequence of the impact of tariffs or were there some delays? And a follow-up on this one is, do you expect the your competitors to keep pushing discounts and incentives for clients?

And what do you expect for the future of this industry, let's say, in the next 3 to 5 years? Then my second question would be on the EBITDA margin. Marco, if you could please help us explain the improvements that enabled you to improve the EBITDA margin to the level you reached this year and what we can expect for 2026, let's say, if we keep FX and tariffs in line with the current levels? And then the final question would just be on the impact of pricing for 2026.

Thank you. On the first question on composite, I can assure you 100%, the trend will remain the same, if not worse. We see obscure brands, Zombies company that restarted during the big moment after COVID, bringing into the market model, there is no chance, in my opinion.

I'm very straightforward. I don't think there is a chance for any improvement unless you have a top brand, unless you play in the niche, unless you can differentiate yourself versus the competitors. Because I remember when I was starting in the United States, I was not a very good student, but I remember very well when I was driving on the 405, an ad they used to say for a sort of a McDonald's equivalent, a tremendous savings.

The tremendous savings was basically saving a couple of cents on $1 in hamburger. This is what's happening. I mean, we -- every single day since a couple of years, it’s not [indiscernible] to the start today. Our sales force, our dealer network meets a client that says, listen, I have an offer with 35% discount to me. I have an offer with 21%, 25% discount from me. I have an offer. And we say, okay, but I will take it. And if you think apples and apples and pears are the same, do it. We don't sell discounts. The secret is limited numbers of boats. The secret is limited number of boats divided by different kind of boats divided by 7 brands. We don't have to grow by volume.

Otherwise, we are going to die. We have to grow by products which are selected ideally with a waiting list, different than others and honestly, nicer and better than others. Will it cost us more to manufacture? Will it cost us more to promote them? Will we promote them the same way or differently? We are trying to do this since 14 years.

So am I expecting any better if I am an obscure composite manufacturer or not very spread out or very long? No, 0. Zero chance. The other part of the question was -- so thank God, we have made-to-measure. That's why we're investing. That's why you've seen in the presentation, we are splashing the custom line new series, new range.

About EBITDA margin, okay, this year, we -- as I said, we experienced an increase of 30 basis points despite the pressure on pricing on composite segment. What we expect for next year is maybe it's too early to provide a guidance, but we have in mind what could happen in 2026. First of all, give a glance to the backlog and the backlog is represented mostly by the made-to-measure that we know that is a very interesting contribution margin.

So we expect a growth on this from this point. On top of that, we already made some effort in cost discipline in the second half of 2025, and we believe we'll continue to work on this direction also in 2026. And why? Because we believe that the pressure on pricing, especially in the first half of this year will continue.

I don't know for how many months more. Maybe some competitors should give up on this kind of policies, but we are ready to face it. So we believe that also 2026 will continue to grow to achieve in the midterm, as we said, our midterm targets.

And just on the -- on what you expect for pricing in 2026?

In terms of pricing, we continue to -- usually, we revise the prices every 6 months, and we'll continue to revise it, taking into consideration what the other competitors are doing and also the inflation. So we believe that as an average, our pricing will be increased between 2% and 3% depending on the model, the success of the model, the life of every model and so on. But generally speaking, this is what we expect.

Don't forget that both is made of lists and options. So also on the options is very important. It was a big contribution from the options.

This is a good point that I forgot to mention. In fact, we also expect additional contribution on our margin provided by the optional because now they are representing more than 25% of the final prices and the margin with -- associated to the optional is significantly better than the standard board.

So bespoke, personalization, differentiating from one board to the other, this is what the market is looking for.

The next question is from Natasha Brilliant from UBS.

Three questions from me. The first one is on M&A. So you mentioned that, that's very important for you. Can you tell us a bit more about the pipeline, the type of assets that you're looking for? I think at Q3, you said you were looking at 2 targets. So any update there would be helpful. Second question on Asia Pacific.

You highlighted the potential and you're starting to see some improvements. Can you just give us a bit more color on how you're addressing that, the investments that you're making, any changes that you're making there and when you expect to see a meaningful improvement? And then my last question is just on Super yachts and whether you have any visibility on orders in the coming quarters based on your current conversations?

On M&A, that looks -- I sound like a prophet, an old prophet, which is speaking in the desert because since we listed, we had opportunities which were simply too expensive. our evaluation in terms of EBITDA was very low in the market -- in the stock exchange market and the companies that with the targets that we were looking, they were extremely more expensive than us without being as profitable or as interested or as strategic as us.

So that was banned by rational. We didn't acquire jointly with a competitor the assets of Perini Navi because Perini Navi assets from the bankruptcy were way too expensive for us jointly and collectively and still some other people bought it for an incredible price. So you have to be disciplined. You have to be rational. You have to be it's like owning a football club. You can't be a supporter. You can't be a tifoso because if you think and you manage like a supporter where you end up with the books in court. So you have to be very disciplined in this. Now what we do see is opportunities. There's definitely one we are looking after for more than, I would say, 6, 7 months, which potentially the new Board of Directors I'm expecting will address. Don't forget, there's going to be a new Board of Directors, so the strategy may completely change or remain the same in 2026.

And we are still focused on 2 things: the services and acquisition of something strategic, which is compliant to what we are missing or something strategic, which helps us to grow where is the most profitable area of the company. The third question on Asia Pacific. There's been an interesting season of boat shows from Thailand to Sanya, if I'm not mistaken, recently.

And there is a lot, a lot, a lot of different feeling and mood, the mood that drives the emotional sale of a boat. And so we have interesting points. What is the company doing? We are investing more in Asia Pacific than we did the past 2 years, both with the presence and most likely, don't forget, we have a dealer network that is going to change in the summer of 2026. And I'm expecting that not the same dealer network in Asia Pacific will represent Ferretti Group in the future with the of new dealers.

Okay. And just the last question on whether you're expecting any Super Yacht orders in the very near term based on current conversations?

If you want to sell a superyacht, we have 3 superyachts under negotiation today. The team is negotiating them since months. A super yacht sale is not an easy thing, but you need to be very disciplined there as well. You need to be consistent with what is the marginality that you expect with the delivery date and the contracts are very complex. So positive. Yes.

What's happening in superyacht environment with the recent breaking news is not helping the Italian industry to be considered reliable. But again, there's always a differentiator between A and B and C. So there are 2, 3 port and shippers in Italy, which are completely reliable and they can easily compete, and I'm not referring only to Ferretti, they can easily compete with Northern Europe. And sometimes we are better with Northern Europe with a better value for money. So very confident, absolutely. But again, it's better to leave the negotiation instead of selling with below cost with a reduced margin.

Yes. In fact, if I may, as Alberto mentioned, we are we have a lot of negotiation in place. But we -- because we are not in a hurry, for sure, we have to increase our order backlog, but we are interested to get -- to achieve order that grant marginality the one that all the investors are waiting for. So we believe we are quite confident to close some deals, but only when -- if and when the marginality is granted.

And don't underestimate delivery time. We are talking about delivery 2030. So next [indiscernible] slot between 2029 and 2030 because the sheds are completely full.

There are no more questions. So thank you, everybody, for listening, and have a good day.

Thank you very much. Have a good day.

Thank you. Bye.

Good afternoon, everyone, and welcome to the Ferretti Group First 9 Months 2025 Results Webinar. Thank you all for joining us. We appreciate your time and interest in Ferretti Group as we share an overview of our performance over the past 9 months and discuss the outlook for the future.

Before we begin, let me introduce our speakers. Mr. Alberto Galassi, Chief Executive Officer; Mr. Marco Zammarchi, Chief Financial Officer; and myself, Margherita Sacerdoti, Head of Investor Relations and Sustainability. Today's agenda will cover the key highlights for the 9 months, business dynamics, financial results and final remarks, followed by a Q&A session.

[Operator Instructions]

With that, let me hand it over to Mr. Alberto Galassi to get us started. Mr. Galassi, the floor is yours.

Buongiorno, good afternoon, everybody. So I'm very pleased to highlight a very strong positive momentum for Ferretti Group. We have been experiencing incredible results, and the sharp increase in the order intake and the net backlog is the outcome of it. So we start from the order intake to EUR 771 million, so 4.6% higher than the first 9 months of 2024. The net backlog of the company increased by 4.5%, EUR 795 million versus the EUR 761 million of the previous -- of the quarter that ended the first half, I would say, 30 June of 2025. Now the revenues of the company increased by 2.5%, EUR 887 million versus the EUR 863 million (sic) [ EUR 865 million ] of the previous 9 months. But interestingly enough, also the EBITDA increased to EUR 142 million with 2.5%.

Now what is driving this, I would say, outstanding results? First of all, let's put things in the context. The market is not going at the speed. The market is actually a 2-speed market. Now we had an increased attendance in the boat show seasons and the private preview that Ferretti Group does every year. You have to remember that Ferretti Group every year, the beginning of the month of September in Monaco privatized the yacht club with 26, 27 boats and invites the most important clients and prospects from all over the world. This year, we had an incredible attendance of 960 guests coming from all over the world with plus 14% versus previous years.

The trend is confirmed also in Cannes, where in Cannes boat show, we had a 6% plus of attendance. Of course, it's less than Monaco because if they come to the private yacht show of Ferretti Group, there's no need to come to Cannes. But then we had a 35% more attendances in the Monaco. Monaco Yacht Show is for the made-to-measure and super yacht size. So from 30 meters up to the maximum size that Ferretti Group manufactures today, which is 95 meters. Also Genova, the Italian boat show increased by 12% of our attendances in our event.

Now consider that in the quarter, we had a 36% more order intake versus the same quarter of previous year. So we had EUR 304 million of orders. Considering that not a single super yacht has been sold in this quarter, the number is outstanding. It's really -- it shows that the market is back to stability. It shows that the uncertainty that drove the first -- as we always knew, the wealth is there. Wealth didn't disappear from the planet. We sell in 71 countries and wealth is not finished. On the contrary, in some areas of the world is increasing. What happened was the uncertainty driven by the tariffs, the uncertainty driven by the combination of wars in Middle East, of continuing the tension and war in Ukraine. So that uncertainty drove all our clients, no matter which kind of industry, which kind of business they were in, they were focused on the core activities of their investments or their life, and they were not diverting their attention to boating industry.

Now that things are stabilized and we have things more than under control in the U.S., now we are stabilized with the 16.5% tariffs and anyone took the measures on the potential threat and impact on the industry and their business back not to normal, but back to, I would say, a certain way of managing the possible threat and menace, the market is back. The market is back basically where we invested. The market is back where we wanted the market to be back in the most profitable segment of our industry, which is the made-to-measure. Let me remind for the new investors, made-to-measure from 30 to 45 meters in fiberglass. So that segment itself increased by 32% in the 9 months of this year and 185% versus the previous quarter.

So, we are talking about the magnitude where this segment plays a role of around, we will deep dive that into these numbers. Just to give you a little bit of flavor, it represents 55% of our portfolio. What about the negotiations? Well, we're still waiting for the big American season that starts in Fort Lauderdale in October 29 up to November 2, and we're waiting for the Asia Pacific season that starts in Hong Kong, December 4, and we will go on in -- sorry, in November in Australia, sorry, Australia would be before.

Well, we have pending negotiation for EUR 430 million without the American season and without the Asia Pacific boat show. And last year, if you compare apples with apples, we were at EUR 290 million. So what is Ferretti Group giving? Which kind of message are we giving in general to the investors, to our stakeholders, and I gave it to my Board today. is that in a market where the small is not selling unless you have a top brand, in a market where we are facing a lot of discounts from the competitors expressly and especially from U.K. manufacturers, I do understand it because they do manufacture in pound, they buy components in euro and they sell in dollars. So I understand they're struggling. Even in this context and this complicated scenario, Ferretti Group is positioned, thanks to the brand, thanks to the size, thanks to the design of being exactly where we are with the CapEx cycle investments that we have done in the position when the market is back and freed from uncertainties is calling us, is ringing our bell.

So thank you for your attention, and let's go and see what we've done as business dynamics. So we splashed 3 important products. One is a range update of an existing model is the Ferretti 800. We splashed the brand-new Riva 54 that starts the new EVA -- the new era, sorry, of Itama. We will have 3 new versions coming in the next 4 years. The Ferretti 800, we sold 8 units. It's been presented at the Monaco preview at the beginning of September. The Itama 54, we sold 4. And most important, in terms of range expansion, we have the brand-new Riva 54 meters and we sold 4 units. The Riva 54 meters is priced EUR 41.7 million. This is the first one that goes to Middle East, 3 more are already sold and the manufacturing and the delivery date of the next available one is 2028.

In the third quarter, also we announced 3 other products, which are not already in the water. One is a range expansion is the Riva Caravelle, 42 meters. It's the biggest Riva in fiberglass displacement yacht. It's the beginning of a new family of products. It's a displacement yacht that brings Riva into the segment in a lower range -- price range than the Riva 50 before and the Riva 54. The Caravelle, we sold 1 unit. It's been sold to Middle East, and it's a EUR 24.7 million boat without options. So this is where we are positioned now.

And also custom line, which is a backbone of our revenues and profit-making companies, we presented the brand Navetta 35. It's is a EUR 15-point-something million boat. We sold 2 units. And the custom line site, we have the Navetta series, which is the displacement lines and the Saetta, which basically is an arrow in English. It's the planing yachts, the 128 that replaces the 120, we have 2 units sold, and it's a EUR 17 million boat. So I'll give some -- a step back, and I'll give some data Margherita will explain you and guide you through the market, the sales and the composition.

Thank you, Mr. Galassi. So let's have a look at our order backlog and net backlog. As Mr. Galassi just mentioned, the order backlog increased from the 30 September 2024, almost 13%, thanks to the incredible order intake, especially in the third quarter this year, plus 36%. But also the net backlog increased compared just to June 2025, plus 4.5%. This is why we have good visibility over the end of the year and beyond 2025, and we are confident in confirming the guidance. Mr. Galassi, Mr. Zammarchi will give you more details going forward.

Also important to highlight that we delivered 193 units in the 9 months, and we took 140 new units in the order. So this is a confirmation of the shift we are witnessing toward larger-sized model, more customizable that brings along a higher marginality. If we look at the order intake, we see -- so in the -- we left you in July with an order intake of the first half that was minus 9.2%, and we inverted the signs. So we are plus 4.6% over the 9 months, thanks to the incredible order intake of the third quarter that, as Mr. Galassi mentioned, doesn't include any super yacht.

Why is it so? Well, we noticed that the clients are back. They got used to the new international environment, and there is more clarity over the macroeconomic condition, more clarity over the tariffs. So all these help us getting them back into negotiation and concluding the negotiation. Uncertainty is the worst enemy for us. Book-to-bill ratio is very high, 1.2x when we exclude the Composite segment and above 1, including Composite segment. And as of today, negotiations are very high compared to last year, EUR 430 million versus EUR 290 million. Again, this gives us a good sentiment over the upcoming season in the U.S.

If we look at the order intake by segment, we can see that the mix was very good. Made-to-measure increased 32% and only in the quarter, EUR 185 million. Now Made-to-measure represents 55% of our order intake. Composite was almost in line with last year, but very important to highlight that more than half of the composite intake was above 80 feet. So again, this is the high composite and the marginality of high composite is similar to that of Made-to-Measure.

If we look at the geography, we can notice that Europe was the main character of this quarter, thanks to the boat show season. Europe performed plus 32% compared to the last -- to the 9 months last year and plus 89% quarter over quarter 2024. Middle East, if we exclude the Super yatch that we took last year in the third quarter, Middle East would have performed well, plus 18%. So it's a tough comparison. And America was in line. Again, it wasn't the quarter of America. So this give us good sentiment over the upcoming season. Asia is still small, represent 2%. It was up 13%, but overall, it's still a small area for us.

Now I'll hand it over to Mr. Zammarchi for the revenue.

Good afternoon. Talking about revenues after the order intake that is feeding us the revenue trend, we have an increase of 2.5% versus prior year. I remember that when we released the half year result, it was plus 1.5%. So we are moving forward to our guidance that we do confirm also in consideration of the backlog that will provide an additional visibility and also supported by the very high volume of negotiation in place. If we analyze this 2.5% increase versus prior year, we have also to highlight the different contribution, the different breakdown amongst the segment. In fact, now the contribution, the increase, the support provided by Made-to-measure increased by nearly 14% and Super Yacht, including -- that include not only the full bespoke ships, but also the branded Super Yacht. So I'm referring to the, for example, to Riva 54 that Mr. Galassi mentioned before, generating an increase of 33%. So we believe that the branded Super Yacht will continue to feed our revenue trend in the future.

In terms of profitability, we have the same increase has further revenue, so 2.5%, reaching EUR 142 million versus the EUR 138 million of prior year. So we are not at the moment in -- close to our guidance, but we elaborate how we expect to meet such guidance. First of all, in -- we are experiencing a lot of pressure, aggressive pressure from many competitors, especially in the composite segment. We have some sample of competitors that are discounting 40%, 45% versus the list price. And we decide not to follow them because it's a suicide move. But for sure, to provide some additional discount in order to maintain our market share. And this is quite important.

On the other hand, we have already implemented and now it's already 4 months that we have implemented some cost-saving initiatives, especially in industrial overhead area. That means the fixed cost of operation and also in terms of SG&A, especially in marketing because we decided to skip some minor boat show that do not provide a lot of support to our revenue generation. Say that also waiting for the American season that usually provide higher marginality, we believe that the guidance that we provide in terms of EBITDA of 16.5% is still our target.

Moving to the CapEx. The CapEx of the first 9 months of this year, it was EUR 64 million. And so we are in line and we confirm our guidance to be below EUR 90 million of CapEx or capital expenditure for 2025. And what we wanted to remind is that we also believe that having -- we believe that in 2025, we closed our second CapEx cycle. So we think that from 2026 onwards, the -- our need without including any M&A activity, our need of capital expenditure will be around 5%, 6% on total revenues. Also in consideration that what we -- the second CapEx cycle was driven by our necessity to increase production capacity. And with Ravenna, we fulfill this target. Now the production capacity, the production utilization of our shipyard that at the beginning was 97%. I mean, I'm talking about 2024, now is 80%.

So in a nutshell, we have now enough space to continue to grow to our revenues. For example, in Ravenna, we go to produce high size, larger sized boat like the Riva Caravelle that we presented before. So we have made our -- enough space in this facility to continue to grow without spending more money in capital expenditure.

In terms of net financial position, the net financial position is still positive, EUR 65 million with a net working capital at 15.9%. Trying to elaborate a little bit about this figure. Usually, the third quarter is a quarter that in our industry absorb cash because we have to build up inventory for -- not only for the American season, but also for the larger boat for the European season. What we want to remind that last year, in the same quarter, the absorption was -- it was EUR 87 million. And so we are managing very carefully, our finished goods inventory and also the need for the composite season for the U.S. What we expect for the end of the year is to be back over EUR 100 million in terms of net financial position in consideration of the order intake, the release of inventory, especially for the U.S. market. So we should be quite happy of this target.

So I'll leave it to Mr. Galassi for the final remarks. And so please go.

So I'll give you a little bit of market outlook and final remarks. Our strength, the 7 brands, our strength, the 70 countries where we sell. We also have a range of boats from 8 to 95 meters. And there is no crisis in luxury super top brands like Wally, like Riva. And we're not premium. We are really talking about luxury here. So -- and we have a different regional momentum globally that enable us to catch opportunities worldwide. The most important thing, you've seen in the fluctuation of our numbers quarter-by-quarter, you see there's some kind of compensation from regions and others. I remember when Margherita mentioned before that the first half results, we were, I would say, minus 9.2% in the order intake. And I remember that I kept saying to the audience, well, listen, it's just basically talking about 3 yachts. 3 Made-to-measure yachts are making the difference. Well, the 3 Made-to-measure yachts became many, many more in the quarter. And it's -- that's the nature of our business, where we do play, where we do compete, one sale can play a difference quarter-to-quarter.

But on the overall, the picture is always a positive one because what we are saying is that we are positioned where the competition is less furious. As Marco said -- I received a contract last night from a dealer that imports British ships in the U.S. and it was offering 45% to the end user, to the client. You cannot survive. There's no chance you can survive in this business if you offer 45% discount to the client. So that segment is not the segment we are in. We can compete sometimes, but we leave the negotiation because we are focused in a different arena in a different scenario. So we are an increased presence where the most profitable segment is from above 80 feet, 24 meters. And we have a very good visibility above and after 2025. As Margherita said, 55% of our order intake is in the Made-to-measure segment. It was 44% in the previous 9 months of last year. And more than 50% of the new orders that we are referring to are coming in the segment from 24 meters up.

So how is it possible? Because we made investments in CapEx, but the CapEx plan is finished. So -- and it will go below guidance, and we will have free cash flow generation out of it. But if we didn't make the investment in Ravenna, there was no space to manufacture the Caravelle. If we didn't invest in expansion of Mondolfo on the Adriatic coast where the Pershings are built, there's no chance to increase the new custom line site the line planning boats 106 and 125, 128. So that is driven by design.

Now what's the future outlook? This is a number that makes me very confident. If I compare the negotiations that the company had in the previous -- last year at this date, we were at EUR 290 million of negotiation, and we've seen the year that we achieved this year. Now we are at EUR 430 million. So we have a very good visibility and the American season is way to come. U.S. market pays more in our players list. We do control. We do import ourselves. We are not in the hands of a distributor of a dealer. So we are the owner of our own destiny in the United States market. So we can -- we know how to manage the prices. We always have positive surprises out of America at the last quarter.

If there is nothing new because our industry this year has been on/off, on/off, on/off, completely unpredictable because there has not been consistency in the news coming to the market. All of a sudden, 100% tariffs and then 0 tariffs, we moved -- let me remind you, in April, we moved from 1.65% to the U.S. to 15%, exactly 16.65%, then 25% plus 1.65%, then it was 51 days. So if that is out of the picture, is out of the table, we know that the market is there. We know that wealth is there, and we know that the market is appreciating our products. So the guidance, A, we will confirm. The net revenues without pre-owned is EUR 1.220 billion, EUR 1.240 billion. Let me remind you the pre-owned expectations are around EUR 56 million this year. So it's 4-plus percent at least. Adjusted EBITDA, it's from EUR 201 million to EUR 207 million, 5.8%, 8.9%. The EBITDA margin, Marco spent some time on it, 16.5% is our expectation. And CapEx, we are -- I would say, we are below, and we confirm that we are below the EUR 90 million.

So if there's any questions, we are all here for you. Thank you.

Thank you for listening to our first 9 months 2025 presentation. We are now ready to start the Q&A session. We will start by live question and later move on to the written questions. The first question is from Adrien Duverger from Goldman Sachs.

Adrien Duverger from Goldman Sachs. So the first question would be if you could please comment on the consumer outlook you're seeing in the different regions? And if you can comment on the early October trends and how that compares to the third quarter and more particularly on the progress you've made so far in the U.S.

The second question would be on your EBITDA margin. So thank you for providing some of the building blocks with how you intend to reach the guidance for the full year. And can you also please give us some indications around how you think you can improve it further to reach your midterm guidance or maybe the different building blocks.

And the last question would be on the M&A pipeline and some potential acquisitions or expansion of factories. I think you had mentioned it in your last couple of releases. Could you please give us an update?

Let me start with the flavor of the month of October is an excellent flavor. The month of October is confirming that the negotiations that we had in place are becoming contracts. So as I said, the EUR 430 million are turning into existing contracts. Also America is giving some good results. Middle East is giving good results. Don't forget that we've been at war in Middle East for like 2, 3 months in a row. And some markets like the Gulf area are very, very important for us. So that also that trend of peace is helping a lot our expectations.

So geography-wise, the only disappointing I have, and I'll be honest with you, is in Asia Pacific because Asia Pacific is a flat trend of order intake, which doesn't reflect in our opinion, the potential. So if I have to say where we are, we guilting something, I would say, honestly, yes. We should do better in Asia Pacific because we are now investing in a new dealer network. We are thinking and considering to expand areas like Indonesia and Malaysia with super wealthy individuals. Indonesia is investing in marinas over there, and we've been a little bit ignoring that part of the world. Greater China is affected by the fact that whoever wanted to buy a boat in the past history, I've been only here 11.5 years, has been more likely a real estate developer and real estate is suffering a lot. So most of the boats that were in Shenzhen are now sold to Hong Kong.

But there's a new market. There's a new kind of owner, the new kind of wealth also in Asia Pacific coming up from AI, from this new generation. One thing you don't have to forget, we have 44% of our order intake is coming from repeating clients. They don't move from Ferretti Group because of the 7 brands we have or because they've been happy with the satisfaction they had in the pleasant journey with us. But the other more important thing, even more important than that is the average age. The young generation is buying Ferretti Group. The young generation is attracted by our brands. Don't underestimate the power of brands. Brands are the game changer. Design and brands are the game changer. They need to be beautiful. So the new generation in Asia Pacific is looking at us, are we attracting them? Are we approaching them in the right way? This is something that will enable us to unleash a potential in 2026. I bet on the better results in Asia Pacific than what we have seen in 2025, 100%.

Now on the U.S. market, I think I gave you the flavor. The boat show is coming. The season is coming. So far, the news are good news, but the competition is insane. In some competitive environment like the composite where you don't have to play with a super brand, but you play with a top premium blend like Ferretti Yacht, well, you have competitors discounting 35%, 40%, 45%. Then you have 2 options, either you play the game, which don't. or we decide to diversify our production to other areas and not to have in the boats waiting for the war of discounts. I mean you have to be very fast.

Today's world, in my opinion, at least as the lesson I learned in 2025 is not the big fish that eats the small one, it's the fast fish that eats the slower one. You need to be fast. You need to react quickly. I mean, like an Air Force pilot, you need to be in quick reaction alert mode. This is the picture I've seen.

On the M&A, finally, we hope to sign an exclusivity right with the potential targets that we have. There are actually 2 and enter into due diligence process. It's a long process, but that's what we are waiting for and aiming for. Again, I can't tell you more than that, but you can see the smile on my face.

Marco, on the EBITDA, sorry.

Okay. About the EBITDA, as I said, we -- we are starting from 16% in 9 months. We still believe that 16.5% at the year-end is achievable. And our consideration is based on 2 facts that till now, the effect of discounting policy is roughly 60 basis points that we are planning to more than recover, thanks to some cost containment, as I said before, especially in industrial overhead. So working on the fixed cost of manufacturing. On top of that, we also find some opportunity in decreasing our product cost, thanks to some volume discount with our main supplier.

I remind you that we are the biggest customer for many, many brands, especially engines, generators and other high-value equipment and also some cost containment measure in SG&A, especially in marketing.

On top of that, we also believe that the contribution for the U.S. market -- because usually the U.S. market has different -- is a better contribution than the European one. And the first sign that we have seen in this quarter are quite promising. Just to give you an idea, as we speak, in October, we have already collected more than EUR 80 million of order, of which 50% are coming from the U.S. So taking into consideration all these factors, we believe that 16.5% is really achievable.

The next question is from Emanuele Gallazzi from Equita.

Basically from my side, 3 questions. The first one is on the -- basically, when we look at the EUR 430 million ongoing negotiation, you mentioned, if I'm not wrong, EUR 180 million already achieved in October. But can you just give us a little bit more color on the segment mix, the geographies, specifically on the ongoing negotiation? And how do you see the super yacht, let's say, market evolving given the fact that clearly in the third quarter, you didn't get order in the super yacht segment. So the order intake was particularly strong in the third quarter if we consider the fact that no Super were included.

The second one is clearly on the pricing side because you clearly provide a lot of details about the current pricing competition and the environment. Just would like to understand a little bit better about the second market for your brands? And how do you see the current offer dynamics and the pricing in the secondhand market?

And the last one is on the net working capital. Do you still expect the net working capital on sales ratio to be around 10% by year-end?

Okay. Thank you. Well, Marco said EUR 80 million, not EUR 180 million. Maybe I misunderstood your point. Of the EUR 430 million negotiation, EUR 80 million became already orders in the month of October. Yes, including United States, but it's global. It's global. We had a sale in Asia Pacific. We had many sales in Europe. We had sales, of course, in Middle East. So it's a global trend. It's a [ little part of this game ] because it's not globally the same, but definitely, it's global. On the second end, to be honest with you, it's not worrying us at all. Not today, Ferretti Group as an internal policy is very limited. I think we had a threshold of Marco, how much is it? I would say, EUR 50 million. So for us, it's basically irrelevant in the big picture. And we had very good results of selling trade-ins in the quarter, so between June and September. So that is not worrying. Don't forget, scarcity is the driver.

We are not manufacturing 100 pieces, 100 units exactly the same. We're not manufacturing -- we delivered -- to give you a number, we delivered 195 boats in 9 months. Okay? They are not 195 bots exactly looking like the same or maybe 3 different models with huge production compared, of course, in comparison to the kind of industry we are. We're not in automotive here. The driver is scarcity, a few units divided by brands, globally. So that -- you cannot have a huge amount of secondhand boats in the market because simply you did not manufacture them when they were new. So it's by design. And we have only maybe 2, 3 units per brand on that specific segment. That will not bring you to have a complete fallout of boats manufactured in a standard manufacturing line, as you can see in other competitors.

That is a different championship. You have to try to read the industry with 2 speeds. This industry is not going entirely collectively at the same speed. With some competitors, the only thing we have in common is that we both manufacture things that float. All the rest is different. Marco, there was a question on the...

Okay. First of all, let me elaborate a little bit more about the orders because you mentioned Super yacht division. First of all, as Mr. Galassi said, the first available slot for the branded Super yacht is 2028. And for full custom, full bespoke boat is 2029. So -- and just to give you an idea, now the revenues generated by the Super yacht division is 20% and the occupancy rate of our production is 100%. So we have no available slot. So maybe we also -- we have to start thinking how to expand this segment.

What we can say about it is that we are not worried because we have no additional opportunity to grow up. But we have -- we are quite confident to bring some additional order by year-end, at least a couple of orders, one in full bespoke and one in branded Super yacht. Then following the net working capital, yes, I agree with your conclusion. We believe that at the year-end, we will be very close, if not below 10%. As I mentioned during my -- when I commented this slide, it was that we expect to be over EUR 100 million of net financial position. And this will be in consideration of, as we said, we have some product already finished in the U.S. part of them, as I mentioned before, has been sold and the same will happen also in Europe.

On top of that, the constant inflow of order intake where we require at least a 10% nonrefundable deposit for every order will contribute to these dynamics. So yes, we do confirm to be confident to reach at year-end a 10% ratio between net working capital and revenues.

The next question is from Niccolo Storer from Kepler.

Can you hear me?

Yes.

Two questions, please. The first one is on discounts. So you said that basically, you have been accommodating your clients with some more favorable pricing. I was wondering how this is accounted for. So basically I already see this on intake, which is, I mean, lower by this discount you are granting to your clients and then this is turning into lower revenues? Or is there anything else in the accounting of this process we should be aware of?

Second thing is about, again, working capital, in particular, comparing Q3 this year with Q3 last year your position, if my calculations are right, has worsened by over EUR 100 million. But Q3 last year, you were already, let's say, having on your books a good amount of finished product for the upcoming North American season, which then have not been sold. But still, the situation seems very similar, yet we have had such a sharp deterioration. If you can comment on the moving parts?

And also on your target to get to, let's say, more than EUR 100 million in cash at year-end. I think that if you're able to bring working capital to sales at around 10%, probably you could be well above EUR 100 million. So what am I missing here? If you get to 10%, let's say, which is a level very similar to previous year, why should be just a bit above EUR 100 million, not much above EUR 100 million, also considering that CapEx is not as high as last year. We know about dividends, et cetera.

On the first one on discounts, in fairness, I didn't get it properly, but I don't know if Marco got.

No, could you repeat, Niccolo, please?

Niccolo, the first one was a little bit difficult to understand.

Just as the accounting of this is working?

How are they accounted the discounts? Is the question?

Yes, it's just lower revenues for you.

Yes.

Do you have any, I don't know, cost line, which is impacted and your accounting discounts under higher cost? I do not know.

No, no, it's quite simple. is the selling cost of -- sorry, the sales price of the unit will be in this case, a little bit lower. So you will see as lower revenues.

Lower revenues, lower intake.

Lower revenues, lower intake, a lower margin unless some volume discount that I mentioned before that we expect from the major supplier of this company.

Okay.

On the second one, okay, let me be a little bit conservative. I said over EUR 100 million in terms of cash generation. And then if you compare Q3 last year, it was not that we had the same amount of finished goods. We had, at that time, a lot of work in progress for the American market. It was in the Q4 that we finished these goods and were delivered on the U.S. So it was 2 different dynamics. For example, in this moment, just to give you an idea for the U.S. market, we have some boat available, but the work in progress for the U.S. market is incredibly much lower because we also have seen that the dynamics of the U.S. market is moving in direction of a larger boat.

So also our effort in having some available stock for the composite, it will be much, much more reduced. So taking into consideration that we -- the working capital of the Made-to-measure is lower compared with the compared with the composite one, we believe that this normalization is quite possible.

Can I add something, if I may. We are not manufacturing in 2025 exactly what we were manufacturing in 2024 in terms of product mix. There's more Made-to-measure than composite because we're manufacturing what the market wants. And we have the space. We have the availability finally in terms of space to manufacture more made-to-measure. So it's a different mix. It's not copy and paste of the production line of 2024.

Another question from Natasha Brilliant from UBS.

I hope you can hear me. Just to come back on the competitive dynamics. So what do you think might change that, particularly with the smaller yachts where you say you're seeing more competition? What could be the catalyst for that to change? Or do you think this is just how the industry could be for some time?

And related to that, when you describe the competitors giving the significant discounts of 40% or 45%, can you share what your comparable discount is? You said it's just a little bit, but could you just give us some numbers to that, please?

Okay. What I think some shipyard will not make it. In my opinion, they will not be able to cross the desert. Unless huge capital injection, equity injection because you cannot survive. I mean, let's be very simple. This business is not rocket science. You're buying engines from Germany, mainly or from Sweden, and you're paying them in euros. You are -- the workforce, in this specific case, you pay them in pounds. You can have a lot of external workers or you can have a lot of employees, depends on how the business is structured. And you distribute yourself or you're in the hands of a dealer and the dealer needs to survive, so it's charging you a big discount. And unfortunately, with the common new trend, you're selling in the U.S. So the examples we are referring is mainly in the U.S. market, mainly in some specific segments, also sometimes in Europe.

So I don't see the shipyard -- the possibility to survive in this business environment if this is the kind of strategy that you have in place because you can breathe for a while and then simply you die because there's no more oxygen, unless you keep investing and injecting equity in the company to keep the zombie company alive. I want to be very straightforward.

How do we compete? It's very simple. We leave the table and for the negotiation because if the client doesn't see that he's actually buying something that is really -- there's a reason why there's a 45% discount over there in some areas, well, because the value of that boat is really -- they are killing the brand. They are killing the resale value of the boat. So if the client doesn't understand because it's purely attracted by that, it's not our client. So we leave the negotiation, we look for our client. So negotiations take longer time. Clients need to be educated. So it's very easy when you have a brand that says by itself and it speaks for itself. It's more complicated when you have to educate. So it's going to be like this for what, a year, how long can they survive? I don't see that much life unless the business model changes in that specific case.

How do we say our discounts are not even comparable. I mean, they really missing, I would say, two digits around it. So there's no competition. And again, let's go back to scarcity. How many units in the world are we talking about that can compete with the specific model I received the contract last night. Or maybe we have 4. Thank God, one of the competitor is the Ferretti 800. We sold 8 units and the discount is not even close to the comparison. So even that in the new brand -- sorry, the new models, the product range, which is young, we renew the fleet every 4 years. That kind of thing is attracting the clients more than boats that maybe have been sitting there for a while.

So it's really -- it's very hard to read, but it's not the same business. We are in the same business brackets, but it's not the same business. And the numbers speak by themselves.

We have 2 questions, written questions about an update on the buyback program.

Well, the Board, we had -- today, the Board approved the numbers, and it's been raised by 1 director, 3 topics: topic 1:1, the stock exchange program and long-term incentive plan from the management. And of course, in order to have a stock exchange -- stock -- sorry, stock option plan for the managers and for top employees of the company, you need to have a buyback program. So it's been addressed also today. I know it takes longer than everybody expected, but it's not forgotten, still on the table, and there's been a discussion on this also today.

We have one last question from Niccolo Storer again.

You hear me? Just a clarification on the U.S., if I remember well, one of the last time we spoke, you said that you would not increase prices to compensate for U.S. dollar weakness. Is this confirmed? And if this is the case, are you still expecting to have a profitability boost in the coming periods from the region?

Yes, I do confirm that we haven't increased the U.S. price list because of the tariff. We review the price list in September as we do every 6 months, but the consideration to increase or not the price of each model, it was not driven by the tariff. So we didn't include. We made our market analysis to see if we can increase by 1%, 2%, 3% or keep it the same in order in taking into consideration the success of the product and so on. But no decision was taken -- any decision was taken in consideration of the tariff first.

So -- and the additional contribution that is -- that we expect from the U.S. market is not because of the price increase, but it's the natural -- the normal, the standard margin that usually we gain in the U.S. market.

And let me take the opportunity to remind that the tariffs do not apply on whatever is not wearing an American U.S. flag. So anything bigger than 30 meters usually, you don't have an American flag, you can have any other BVIs or Cayman or -- so that's -- the tariffs below 24 meters, they have a role. And we had no negotiation lost because of the tariffs. That is the reality so far.

There are no more questions. So thank you for being here, and have a good day.

Thank you very much. Gracias.

Have a good day.