The Italy-listed yacht manufacturer Ferretti Group has seen shares tumble 5.5% to €3.06 — the lowest level since January — after releasing first-quarter 2026 earnings that fell short of investor expectations amid global headwinds from tariff uncertainty and the Middle East conflict.
Why This Matters
• Share price drop: Ferretti stock hit 5-month lows at €3.06, down 5.5%, despite an initial 1.6% gain post-announcement.
• Order intake slump: New orders collapsed 33.6% year-on-year to €179.6M in Q1 2026, driven by geopolitical disruption.
• New CEO at the helm: Stassi Anastassov, formerly of Procter & Gamble and Duracell, took over as CEO on May 15, with markets awaiting his strategic vision.
• Dividend upcoming: The next dividend ex-date is June 14, 2026, with Ferretti committing to pay out at least 30% of attributable profit annually.
What Happened in the First Quarter
The Forlì-based luxury yacht builder posted net revenues from new yachts of €302.1M for the three months ending March 31, an 8% decline compared to €328.5M in the same period last year. The company attributed the shortfall primarily to delayed order collection from the Middle East, where ongoing conflict has stalled both new contracts and delivery schedules.
Adjusted EBITDA came in at €48.7M, down 7.2% from €52.5M in Q1 2025, though the EBITDA margin edged slightly higher to 16.1% from 16%. Net profit fell 12% to €21M, down from €23.9M a year earlier.
The most dramatic contraction appeared in the order intake pipeline: Ferretti recorded just €179.6M in new orders during the quarter, a steep drop from €270.6M in Q1 2025. The company's net backlog — the value of unfulfilled orders — stood at €722.3M at the end of March, down from €828.6M at the close of 2025.
Cash remained healthy, with net financial position at a positive €18.4M, though this marked a sharp decline from €111M at year-end 2025 as the company funded operations and capital expenditure.
What the New CEO Is Saying
Stassi Anastassov, who officially took the reins on May 15 after a dozen years under predecessor Alberto Galassi, acknowledged the difficult quarter in measured terms. "The first quarter reflected a less dynamic commercial environment and a slower order conversion than expected, particularly in terms of order intake," he stated.
But Anastassov emphasized discipline over panic. "We approach this phase with realism, discipline, and focus on execution," he said, adding that "confidence should never be confused with complacency." He pointed to over €400M in net backlog scheduled to convert into revenue during 2026, providing "significant visibility" for the rest of the fiscal year.
The executive underscored that the fundamentals remain intact: "Our brands are strongly positioned, margins are proving resilient, and the quality and visibility of our order book represent a robust operational base to continue building on." His message to investors: the company is prioritizing long-term value creation over short-term reactions.
Analyst Reaction and Market Skepticism
JP Morgan analysts captured the prevailing mood in a note released shortly after the results. "We expect some weakness in the share price, given the lackluster first-quarter results, while we await the new CEO's position on strategy and future outlook," the bank wrote.
With Anastassov still in his first week on the job, the market appears to be in a wait-and-see mode, looking for clarity on whether Ferretti will pivot its commercial strategy, adjust its product mix, or double down on high-margin custom builds to weather the turbulence.
The Middle East Factor
The conflict in the Middle East has emerged as a concrete drag on Ferretti's pipeline. The region has historically been a key demand driver for superyachts and large custom vessels, and the company explicitly cited delays in both order acquisition and vessel delivery tied to the instability.
Tariff uncertainty — particularly around U.S. trade policy and global supply chain friction — has also weighed on sentiment, though Ferretti did not break out specific tariff-related costs in its release.
Full-Year Guidance: Holding Steady for Now
Despite the turbulent start, Ferretti Group maintained its 2026 full-year guidance, projecting net revenues from new yachts between €1.25 billion and €1.265 billion, representing growth of 1.5% to 2.7% versus 2025. The company expects an adjusted EBITDA margin in the range of 16.2% to 16.6%, and capital expenditure between €70M and €75M.
That guidance reflects a degree of confidence in the backlog's conversion, though some investors remain unconvinced given the sharp slowdown in fresh order momentum.
How Ferretti Stacks Up Against Rivals
The broader luxury yacht sector has shown mixed performance in 2026. Sanlorenzo, another Italy-based builder, reported a 25.4% surge in orders in its Q1, with net revenues up 4% year-on-year to €222.1M and a net profit increase of 5.1%. Sanlorenzo's order book stood at €1.23 billion, covering 72% of its 2026 revenue guidance — a stark contrast to Ferretti's contracting pipeline.
Internationally, German megayacht specialist Lürssen delivered its third superyacht of the year, the 117-meter "Boardwalk," while Dutch builder Feadship claimed the Motor Yacht of the Year award at the 2026 World Superyacht Awards for its hydrogen fuel-cell vessel "Breakthrough." Both companies are pushing into alternative fuels and sustainability, areas where Ferretti has yet to make headline-grabbing moves.
Princess Yachts in the UK reported strong sales at boot Düsseldorf 2026, with seven units of its new X90 model pre-sold ahead of a September launch. The company returned to profitability in 2025 and is expanding into outboard-powered models.
The competitive landscape suggests that while the global luxury yacht market remains robust — fueled by ultra-high-net-worth individuals and a post-pandemic surge in leisure spending — execution and differentiation are becoming critical as the sector matures.
What This Means for Investors and the Forlì Hub
For shareholders of Ferretti Group (ticker: YACHT), the immediate outlook hinges on two variables: whether Anastassov can articulate a credible growth strategy in his first earnings call, and whether the Middle East stabilizes enough to unlock the delayed order pipeline.
The company's manufacturing footprint remains anchored in Italy, with shipyards in Forlì, Cattolica, La Spezia, and Ancona. Ferretti has committed to maintaining Italian production as a core element of brand identity, even as it expands its global commercial network. The company trades 98.2% of its shares on Borsa Italiana, with the remaining 1.8% on the Hong Kong exchange.
Dividend-focused investors should note the June 14 ex-dividend date, with Ferretti's policy guaranteeing at least 30% of attributable profit as payout — a commitment that remains intact despite the earnings wobble.
The Strategic Crossroads
Anastassov's strategy, as outlined in recent presentations, emphasizes continuity and long-term growth rather than radical reinvention. Key priorities include expanding the "made-to-measure" offering to larger alloy yachts, developing new superyacht models under iconic brands like Riva, Wally, Pershing, and Custom Line, and enhancing after-sales, brokerage, and yacht management services.
The executive has also flagged investment in internalization of high-value activities and technologies to support future growth, though specifics remain vague. For now, the message is one of operational discipline and brand reinforcement rather than aggressive geographic or product expansion.
The market's verdict? Ferretti's shares suggest investors want more than reassurance — they want a roadmap. With the backlog providing a buffer through mid-year, Anastassov has a narrow window to demonstrate that the company can convert pipeline visibility into actual revenue growth, stabilize order intake, and restore momentum in a sector where rivals are pulling ahead.
