Half Year 2026 Sanlorenzo SpA Earnings Call
Speaker #1: The first half shows that Sanlorenzo Group continues on the path of expansion, with sustained growth in line with our guidance for 2026. Thanks to the unique business model, moving beyond worldwide geopolitical issues and the global context, we can analyze figures starting from net revenue in New York, which grew 3.8% year-on-year to $471.3 million, led by the strong performance of the superyacht division and great results from the APAC and Americas regions.
Speaker #1: EBITDA increased 3.7% year-on-year to $83.5 million, and EBITDA margin is 17.7% after the full consolidation of Nautilus One. EBIT was $62.2 million, an increase of 3.9% year-on-year, consistent with the previous year.
Speaker #1: And the group net profit grew by 5.4% year-on-year, with a total amount of $49.1 million and a double-digit margin of 10.4% on net revenue in New York.
Speaker #1: Then the organic investment at $18 million, especially related to new industrial capacity and product development, with an incidence on net revenue in New York at 3.8%.
Speaker #1: And then the net financial position at $49.4 million net cash at the end of June 2026. With a cash generation of $26.5 million last March, after dividends paid of $37 million, and taking advantage of the delivery season provided in Q2, especially in Europe.
Speaker #1: Then we can analyze the figures in more detail, starting from the top line: superyacht division performance remains strong, up 12.4% year-on-year, driven by the Steel line considering the innovative contents also for wellness and longevity.
Speaker #1: And represent more than 32% of net revenue in New York. And then the yacht division generated about 50% of the total revenue, growing by 3.1% compared with the previous H1 2025, mainly related to the market segment above 30 meters.
Speaker #1: Blue Gain generated $43.6 million in revenue, flat year-on-year, confirming strong resiliency in challenging segments of yachts below 24 meters. Then, the Nautilus One division reported net revenue in New York at $40.9 million, reflecting a softer selling market condition while maintaining its distinctive high-end positioning.
Speaker #1: In terms of breakdown by geography, the APAC region grew by 35.8% year-on-year, considering the structural advantage of the Simpson Marine platform in Asia. As well, the Americas grew by 35.4% year-on-year, considering the strong dynamics in the region, especially for yachts above 30 meters.
Speaker #1: Near region increased by 22.7% over the local context. This positive marketing and market evolution allows the group to have a better balance in terms of mix by geography, with 50% where the largest loyal and resilient customer club is based.
Speaker #1: Then, in terms of market, the considerable revenue expansion in America and the APAC region is consistent with the planned 2028 strategy, aimed at entering a new and untapped market.
Speaker #1: In particular, the extension in the recent new local presence in Mexico and Brazil, and also in Japan and Australia, have given in the last H1 2026 a robust order intake contribution.
Speaker #1: But profitability, the EBITDA grew by 3.7% year-on-year, reaching 17.7% on net revenue in New York, considering the balanced expansion of the group with solid margin, consistent with the pricing power and flexible cost structure.
Speaker #1: EBITDA increased 3.9% year-on-year, with a stable EBIT margin at 13.2% after Zone full consolidation. The group net profit grew 5.4% year-on-year, with a double-digit margin at 10.4% on net revenue in New York, and with an improvement of 10 basis points compared to the previous year.
Speaker #1: Order intake evolution: we can consider that the evolution of the top line is driven by the continued growth of backlog, with order intake consistently growing now for eight consecutive quarters.
Speaker #1: A remarkable result was achieved in a challenging global context, and is related to the Sanlorenzo unique business model, which can deliver different and better results, especially in more complex scenarios.
Speaker #1: Due to the top-end positioning of the Sanlorenzo brand, and the peculiarity of scarcity, craftsmanship, made-to-measure, direct distribution to the customer club. And very significant is the order intake of Q2 2026 at $273 million, plus 13.1% compared with the second quarter 2025.
Speaker #1: And with a book-to-bill in Q2 2026 that reached a level of 1.1 times. Then the gross backlog reached the level of $1.5 billion, thanks to the strong H1 2026 order collection of $496 million, up 18.3%, with a robust book-to-bill in H1 2026 of 1.1 times.
Speaker #1: So the gross backlog has a composition of $832 million for 2026, covering 83% net revenue in New York of the midpoint guidance, with a relevant progression of the coverage—you can see 500 basis points compared to the previous year.
Speaker #1: And €667 million for 2027 and beyond, increasing the long-term visibility of future results. The net backlog at the end of June increased to more than €1 billion and, furthermore, the backlog is very consistent and high quality, considering that it is sold 89% to final customers—once again thanks to the Sanlorenzo unique business model.
Speaker #1: About capex, we continued the organic investment program that reached the amount of $18 million at the end of June, of which 87% related to the group's expansion in new product development—$11 million—and new industrial capacity, $4.7 million.
Speaker #1: Dedicated to all divisions. The incidence of organic capex on net revenue in New York is limited to 3.8%. The overall investments are $20.3 million, considering the changing perimeter of $2.2 million referred to the Mass Italia acquisition to increase production in the yacht division for products above 30 meters.
Speaker #1: The net working capital at the end of June 2026 was $86.5 million positive, and below the ceiling level defined in the business plan, with a reduction of more than $32 million in the last 3 months.
Speaker #1: Therefore, the net cash at the end of June of $49.4 million shows a cash generation of $57.7 million compared with June 2025, and of $26.5 million compared with March 2026.
Speaker #1: The net financial position bridge, starting from the end of 2025, highlights the remarkable pre-dividend cash generation of more than $66 million, considering the positive contribution from the operational business for both EBITDA and working capital, for more than $86 million, and a consistently applied capital allocation policy.
Speaker #1: In conclusion, considering the solid H1 2026 results and given the high visibility from the backlog at the end of June, the 2026 guidance is fully confirmed without changes.
Speaker #1: The resiliency is made possible by the Sanlorenzo business model and the strength of the brand, even in a global, complex context as we have in this phase.
Speaker #1: So that's all for the financial results, and I'll leave the floor to Massimo for a business update.
Speaker #2: Thank you.
Speaker #3: Thank you, Attilio. Just a few words before giving you the floor. I'd like to underline the continued product momentum with the introduction of five new boats at the Cannes show.
Speaker #3: The Canbo show will start next Tuesday, the 8th of September, and we will have the first model of the new Sanlorenzo Heritage range. The boat is generating a lot of interest from the market.
Speaker #3: We sold six units already, and we have many appointments already organized. It is something new. It is something that the market needed, and as always, our innovation approach as Sanlorenzo is going in the right direction, and the market is really in appreciation of this new model.
Speaker #3: The 74 meter has been introduced to the market, I think, last June. We delivered the first unit in spring '26, and we have the second unit in delivery by October–November '26.
Speaker #3: Both diesel-electric, so with the sophisticated technology, and this model is, as you know, our biggest and largest model—approximately 2,000 gross tonnage—and this is our limit.
Speaker #3: As you know, we do not want to increase the volume and complexity of our product range above 74–75 meters. Big Blue Game 64 is complete in the BG range, with the award premiere in Cannes. We have just finished testing the boat with a fantastic speed; all the data expected has been reached, so we are very happy with the product.
Speaker #3: We have many contacts to be developed next week in Cannes. And then, last but not least, the Swan 80. The Swan 80 is a completion of the Swan classic range, just below the maxi range. The 80 is 24 meters—it's a very delicate product for us.
Speaker #3: The first boat was delivered last July, in Finland, and will be at the Cannes Boat Show to help us sell and increase the volume of the Swan deal.
Speaker #3: Last, I hope that you found the numbers of the semester good. I think Attilio was giving us a very good picture, also in consideration of the still existing geopolitical problem.
Speaker #3: And this is why—well, because our business model is really about creating long-term value. We are continuously focusing on building differentiation from our competitors and desirability.
Speaker #3: This matter is—this result is coming from a mix of innovation, with the proper technology, with tradition; keeping and preserving our tradition for the design, the co-creation, the tailor-made approach to customer, which is not only the product—which is there since day one, 20 years ago—but also in the service to our customer. And then the continuous developing of the range, product expansion—the six, the five new models that we're willing to use to Cannes is a confirmation of the expansion of our portfolio.
Speaker #3: She is an example, and more has to come. Now, I think it is the time to pass the floor to you. We are ready to reply to your questions, please.
Speaker #2: Yes, we can now open the Q&A session. Anyone wishing to ask a question can do so either by raising their hand using the Zoom tool, or via the chat box.
Speaker #2: I see that we have a question from Natasha Brilliant at UBS. Please, Natasha.
Speaker #4: Hello, good afternoon to everyone, and thanks for taking my questions. Firstly, you highlighted the benefits of new geographies. I think you mentioned Brazil and Australia, so I just wondered if you can share what other markets you might be targeting.
Speaker #4: Second question is, obviously, you've got the yacht shows to come, but any change in customer dynamics in the last few weeks, few months, over the summer?
Speaker #4: Is there anything you can call out by different geographies or by different segments? Any color would be helpful. And then my last question just relates to the Italian Sea Group.
Speaker #4: I think there's a deadline in the next couple of weeks, if I'm not mistaken, about a bid, so I just wondered if you could share your latest thoughts about the potential to bid and what the rationale might be—anything you can share there.
Speaker #4: Thank you very much.
Speaker #3: Thank you, Natasha. I think, fingers crossed, but we should meet at the Canbo show. The most important Canadian dealer, as you see in our picture, one of the most important markets we were targeting when we introduced the trial plan was in green. Canada is for sure one of the most promising countries, and we already have almost a deal with a top dealer who is coming to Cannes to shake hands and sign a preliminary agreement.
Speaker #3: Of course, the Middle East is still a bit on standby, but we can confirm that Asia-Pacific has quite a strong dynamic in August and the beginning of September.
Speaker #3: We had some good sales and also good prospects, probably to be—probably we will meet in the Canbo show. So, if I have to say, Canada will be the first new market to be covered with a strong dealer.
Speaker #3: The Middle East is still in standby. But, as you see from the 'cake' of the geography, we still increased our presence by 22% in the first six months of '26.
Speaker #3: But then, probably, Asia-Pacific will be the part of the market where we do expect the best results for the next couple of months. Regarding the dynamic of the demand, I have to say, good.
Speaker #3: July and August were two good months. We sold both. There is quite a good demand coming, and we have to understand better next week, considering we have next week Cannes and then from '22 to '26 Monaco.
Speaker #3: In the meantime, in the middle, we have three important days in Porto Cervo where we will host 170 Swan sailboats coming from all over the world for the Rolex Swan Cup and for the celebration of the 60th anniversary of Swan.
Speaker #3: We do expect some good business coming from that week, which is from the 16th to the 18th or 19th of September. After Monaco, there will be the Genova show, during the first three days of October.
Speaker #3: So after this dramatic, I would say, 30–35 days of engagement, we do expect to have quite a good result. Finally, TISC—well, we do not have anything too hard in specific.
Speaker #3: As you know from our article on the paper, we have been sending a written offer to the tribunal and to the board of TISC at the end of July.
Speaker #3: We made a proposal in money and engagement, which was, I think, quite important. We are looking at the deal through a company called Polo Nautico Carrara, where we have 45% as Sanlorenzo, and there will be other partners including a large group of suppliers.
Speaker #3: We think that is a good deal because the facilities and the people—the facilities are very good, and the people and the managers are also good people with a lot of skills.
Speaker #3: So we intend to continue to look into the deal, into the matter, but not as the 100% player. We would like to split the deal with some partner in order to proceed without the rigorous financial approach, which is typical of Sanlorenzo.
Speaker #3: You know that I do not like to spend too much money or to jump into deals which are risky for the company. Overall, the geopolitical situation is changing every day.
Speaker #3: As you know, yesterday and the day before yesterday, there were some troubles between Germany and Russia. One week ago, there were other problems. So we do not think that the environment is such that we should do a crazy deal.
Speaker #3: So, please don't worry. Sanlorenzo is always approaching the business with a solid and logical mind. The business is not easy. We know the business pretty well, thanks to our experience.
Speaker #3: And we think that TISC has good assets, but the approach is very balanced, and the balance logic is to approach the deal with Polo Nautico Carrara with some partners, taking care of the workers, taking care of the suppliers.
Speaker #3: Because at the end, most of the suppliers of TISC are Sanlorenzo suppliers. So, we think that we should protect them and we should take care of them.
Speaker #2: Perfect. Thank you very much. That’s very clear. And good luck for the next month.
Speaker #3: Thank you. Thank you.
Speaker #1: Next question is coming from Oriana Cardani from Intesa Sanpaolo. Oriana, please.
Speaker #2: Yes, thank you. Good afternoon, everybody. My first question is on the mix of the order intake in the second quarter. Can you tell us the split between Swan and Sanlorenzo, and between yacht and superyacht for Sanlorenzo?
Speaker #2: And can you specify the weight of America in the second quarter order intake? And the second question is on the order backlog of €667 million for the period beyond 2026.
Speaker #2: Could you specify the value for 2027 and 2028? Thank you.
Speaker #1: Thank you.
Speaker #3: Yes. Now, the split of the backlog beyond 2027 is approximately 40% of the volume expected for '28 already sold, and approximately 25% for '28.
Speaker #3: And a little piece of '29. So we are very happy because, on top of having 83% already covered after the first six months for '26,
Speaker #3: And as you know, we have full control of costs. So we are having a nice and good July and August, and we have good expectations for the September boat show.
Speaker #3: So we do expect no problem to close 2026 within the guidance. But it's also nice to start 2027 with 40% covered already.
Speaker #3: And one quarter, 25%, for the following '28 and a piece of '29. Now, regarding the Swan and Sanlorenzo, unfortunately, if I have to say, a small problem we are facing in the last month is the Swan sailboat.
Speaker #3: The market has been pretty much low—in standby, I would say. As you know, Swan is a top brand. We build 25 boats per year.
Speaker #3: So it's not a large-volume company, so we are not expecting to really suffer. But I have to say that the last six to eight months have been pretty low in terms of contacts and orders, so we do expect to see some action in September and October.
Speaker #3: A good point from the Palma show in April: until today, many secondhand Maxi boats between 90 and 110 feet have been sold.
Speaker #3: That is a good sign because when the secondhand market is moving quickly, that is normally a sign and expectation of new boat buyers coming to the boat show.
Speaker #3: Between superyacht and yacht, we normally do not give this kind of information. But mainly, we had a stronger order intake in superyacht, and quite a good and strong order intake on yacht above 30 meters.
Speaker #3: More light market for the yacht below 30 meters. We think that Bluegame is keeping quite a good position, which is extraordinary because boats below 24 meters, as you know, have been suffering for a couple of years.
Speaker #3: And still, the geopolitical situation does not really allow the market to come back strong for boats below 24 meters. America—for America, we can confirm it's good.
Speaker #3: As you see, we have a 35% increase in the United States, and America is continuing to be good. But it is very important, and we can show the cake for one second.
Speaker #3: You see that America is 27.4% of our share. We have the indication that 11% is US clients, out of the 27. So the majority is out of the US.
Speaker #3: And only 2% is below 30 meters. I think that the market below 30 meters in America is suffering due to the tariff, which is normal. A 15% tariff for a boat below 30 meters is significant.
Speaker #3: On the side of Swan, we sold 3 51 and 4 Class 128 in the last six months in America. So the Swan deal, thanks to all the investment we did with American Magic and the new office in Newport, et cetera, is giving back, is paying back to Swan. But I would say America—US and America in general—will be quite strong for boats above 30 meters. For the boats below 30 meters, we still see some problems, some timing from the market before accepting and digesting the tariff.
Speaker #2: Very clear.
Speaker #1: Very clear.
Speaker #2: Thank you very much.
Speaker #3: Okay. Thank you, Kelvin.
Speaker #1: Okay. Then we have probably a final question from Mr. Sandro Lacidonia. Please.
Speaker #4: Yeah, I don't know. First of all, congratulations on the results. I think they're very good—not only if we consider the semester that has just closed, but also if we look to the future. In particular, I'm referring to the order intake and the investments that you are making in R&D, both in absolute terms and also as a percentage of revenues.
Speaker #4: My question is about free cash flow. If you have a forecast for the full year 2026, what is the number for the free cash flow that you expect?
Speaker #4: Thank you.
Speaker #1: Thank ank you.
Speaker #3: The question to Attilio because he knows much better than me.
Speaker #1: Yeah, sure. Yes, Sandro, consider that we haven't indicated a specific guidance for the cash flow, especially considering the evolution of the net working capital that we dedicated, particularly for direct distribution support.
Speaker #1: You know that we have increased the direct distribution, and also, to support the penetration in the new markets as a strategy, as provided in the business plan.
Speaker #1: So in this case, we can consider that the company has very controlled capital allocation. You can see that the operational business in the period, in H1, generated more than €86 million of cash, and we increased with this H1 the free cash flow of the group.
Speaker #1: So for the next semester, we consider maintaining the high generation that we had in H1. This is at least the first target, and of course, this is especially linked to the evolution of the business and the order intake in the next months.
Speaker #1: In any case, as a target for the business plan, you remember that the net working capital ceiling is below 12%, and you can see that in June 2026, we are close to 8.7%.
Speaker #4: Thank you so much. Thank you so much.
Speaker #1: Now we have a question from Joanna Ziarti from Bank of America. Please, Joanna.
Speaker #2: Hi, thank you for taking my question. Actually, I just have one on Europe. If you could please give us more context on what you saw in the second quarter in that market.
Speaker #2: Thank you.
Speaker #3: Yes, Europe. Well, consider if we go to the cake of consider that Europe has been reducing the percentage in respect of the past. I would say it's not really due to the weakness of Europe but I would say the strength of America and Asia Pacific tends also to the investment we did buying Simpson Marine.
Speaker #3: You remember, the first year, 2024, and the middle of '25, there was a bit of calm in the Asia Pacific market. Then, from the second semester—H2 '25 and H1 '26—Asia Pacific did quite a lot, and we are expecting even better.
Speaker #3: So I think that we did perform a fantastic plus 35% year on year, both in Asia Pacific and the Americas. And that is automatically reducing the percentage of the European market.
Speaker #3: Even MEA, the Middle East, has been doing pretty well, but thanks to the larger boat, thanks to the super yacht. Now, Europe I think is a good question.
Speaker #3: I think that in September, in Cannes, Monaco, and Genova, we will understand better the situation of Europe. Europe has not been bad—absolutely, I would say good, but not excellent.
Speaker #3: So we have to see what will be the result of the boat shows. Consider 2027 is the year of election, and therefore you could be—I don't know, I'm using the conditional tense—it could be a moment of, no, I would not say standby, but more attention from the European big countries because of the new election.
Speaker #3: And the situation with Russia, but I would say that July and August contacts have not been bad, especially coming from Eastern Europe. There is a lot of market coming from the new markets of Eastern Europe.
Speaker #3: Maybe a bit less in Germany. In France and Italy, good. UK pretty much in standby. And I would say we consider Turkey part of Europe. Turkey and Greece, good.
Speaker #3: So, you know, it is a bit of a mix of feelings, but I think that we will be more precise by the end of September because Cannes, Genova, and Monaco are really key boat shows where the European people are coming.
Speaker #3: Also important because they spent a fantastic summer, because it was very hot. It was good. People were enjoying yachts. So we received a lot of phone calls with appointments in Cannes.
Speaker #3: And you know, when the customer has a good holiday, they enjoy the boat. There is a kind of need to come and see at the boat show what is new—the new model, larger model—so we feel pretty much the happiness of our customer due to a very good hot summer.
Speaker #2: Great. Thank you.
Speaker #5: Great. Thank you.
Speaker #3: You're welcome.
Speaker #1: Okay, I think there are no further questions. So, Massimo, we can close this call.
Speaker #3: Okay. Thank you very much for your time, and then we will meet soon after the boat shows to understand the next Q3 order intake, with the hope that we will continue to go to the ninth consecutive quarter of increases.
Speaker #3: Which we consider fantastic because eight quarters is almost two years. It's more than two years. Well, no, it's two years—exactly two years—of continuous growth. Considering the geopolitical situation, I think that is a strong sign of resilience and strength of the company.
Speaker #3: The group Sanlorenzo Bluegame S1 and, therefore, our business model—our strategy—is a winner in this moment, in this difficult moment in the market.
