Sanlorenzo (SL) Q3 2024 earnings summary

Executive summary

• Net Revenues New Yachts reached €669 million, up 6.9% year-over-year, driven by strong Superyacht Division growth and the first consolidation of Nautor Swan Group, which contributed €17.6 million post-acquisition.

• EBITDA rose 8.6% to €123.6 million (18.5% margin), and Group Net Profit increased 9.0% to €72.9 million (10.9% margin), reflecting operational efficiency and margin expansion.

• Gross backlog hit a record €1.72 billion (90% sold to final clients), with net backlog at €1.05 billion, providing over 1.1x coverage of 2024 revenue guidance.

• Major acquisitions included Nautor Swan and Simpson Marine, expanding global reach and product offering.

• Significant investments in R&D, sustainability, and production capacity, including green methanol and hydrogen technologies.

Financial highlights

• Net Revenues New Yachts: €669 million (+6.9% YoY), with organic growth at 4.1% excluding Swan.

• EBITDA: €123.6 million (+8.6% YoY), margin 18.5%; EBIT: €97.5 million (+6.8% YoY), margin 14.6%.

• Group net profit: €72.9 million (+9.0% YoY), margin 10.9%.

• Net cash position: €27.2 million after €34.6 million dividends, €27.8 million organic investments, and €82.9 million M&A-related outflows; organic net financial position before M&A and buyback at €110.1 million.

• Organic CapEx at €27.8 million, 4.1% of net revenue in yachts; total investments including M&A: €162.1 million.

Outlook and guidance

• 2024 guidance confirmed for Net Revenues New Yachts (€915–950 million), EBITDA, EBIT, Group Net Profit, and organic CapEx, supported by 94% backlog coverage.

• Organic Net Financial Position guidance revised to €110–120 million due to faster net working capital reabsorption.

• Expect some turbulence in H1 2025, but anticipate a strong market recovery in H2 2025 if interest rates decline and geopolitical tensions ease.

• Swan expected to contribute €35–40 million in revenues and €4–5 million in EBITDA for 2024.

• High revenue visibility with net backlog coverage exceeding 1.1x 2024 revenues.