Good afternoon, everyone, and welcome to The Italian Sea Group Q1 2025 Financial Results Presentation. Before I hand over to your host today, please be advised this presentation will be held in both Italian and English languages simultaneously. To select your chosen language, please click on the interpretation button at the bottom of your screen. You can then choose your preferred language. Additionally, please note there will be an opportunity to ask questions at the end of the presentation. In order to do so, please use the raise hand function on your screen, or for those dialing in, it's star nine on your keypad. I will now give the same announcement in Italian before we hand over to your host.
Buon pomeriggio a tutti e benvenuti alla presentazione di The Italian Sea Group in Occasione Della Presentazione Dei Resultati Q1 2025.
Prima di lasciare la parola al Management Team, vi ricordo che è presente la funzione dell'interpretariato simultaneo. Pertanto, vi chiedo gentilmente di selezionare in basso a destra il tasto "Interpretazione" e selezionare il canale italiano o inglese a seconda della vostra preferenza. Ci sarà un'opportunità di Q&A al termine della presentazione. Se avete domande, potete utilizzare la funzione "Alza la mano" in basso allo schermo, oppure, per chi partecipa telefonicamente, digitare *9 sulla tastiera. Grazie. Ho ora il piacere di lasciare la parola a Enrico Filippi, Head of Investor Relations and ESG. Prego.
[Foreign Language] Buongiorno a tutti, grazie mille come sempre per essere qui e alla.
Welcome, everybody. Welcome. Thank you for being here at our periodical conference call. Here with us is our founder, Giovanni Costantino. I'm going to leave the floor to him for the beginning of the presentation.
Good afternoon, everybody. Thank you. Thank you as usual. Thank you so much for being here. I would like to start by showing you the historical traditional chart of the group, and since 2009 until today. Very quickly, I would like to show you. All right, so this is the story of the group, and you can see that with the results of the first quarter, we can confirm the guidance 2025. That is to say, an outlook of EUR 410 million-EUR 430 million. The results of the first quarter, we have revenues amounting to EUR 96.8 million, plus 1% therefore versus the previous quarter.
EBITDA is amounting to EUR 16.7 million, therefore plus 4% compared to the previous quarter 2024, with a margin on revenues at 17.3%, with a guidance for the end of the year that tells us that we will be at 17.5%. Therefore, once again, the guidance is confirmed. With regard to the order book, it amounts to EUR 1.22 billion, and the investments for the period, this is ordinary maintenance amounting to EUR 500,000, and we have a net financial position equal to minus EUR 33 million. Now, very quickly, I would like to tell you about profitability. I would like to compare The Italian Sea Group with the average of the listed players. We have our EBITDA margin for The Italian Sea Group at 17.4%, and the average of the other companies, listed companies in the field, is 16.1%. Let's have a look at the partnerships.
Of course, the partnerships are continuing with very good results with both Giorgio Armani and Lamborghini. The results are totally in line with the expectations. Now, very quickly, I would like to talk about Perini Navi. I would like to highlight the projects, the projects that are currently in progress, and the projects that we have already delivered or which are going to be delivered soon. We have delivered, we delivered in 2024, the biggest catamaran in the world, and we are going to deliver today. We're going to deliver a 60 m , and today we're doing the test in the sea, actually. Next year we will deliver another ketch, 56 m. We have already delivered this other 59 m, 58, 59 m, Perini Navi. As you know, we both produce sailing boats and also motor boats.
We have already launched them, these first two, and they will be delivered in the month of July. We confirm second position with 1,356 meters of boats being produced. We are second in the world for boats over 50 meters. We confirm our second position also with regard to the number of projects we are dealing with. The Italian Sea Group is second. If we also have a look at the boats, the ships launched in 2025, we have 78 m already launched to be delivered next month. The second one, 55 m, already launched, and it will be delivered at the end of May, this May. We have 59 m, Perini Navi, already launched to be delivered in July. Then 58 m, Perini Navi, already launched to be delivered in July.
72 m , Admiral Armani, launched last Sunday and to be delivered on the 30th of June, so next month. Another 50 m. It is our panorama project to be launched this year, but delivered next year. 60 m , Perini Navi, already launched, being tested today in the sea and to be delivered next month, mid-June. We have Picchiotti. The first Picchiotti will be launched in the month of June, and it will be shown to our clients starting from mid-July onwards. At the end of the year, we will launch the 56 m Perini ketch. It will be delivered next year. We confirm our total leadership with regard to the presentations of large-size yachts. In 2023, we had a show, a very high-value show with four ships and the Lamborghini yacht.
Last year, we confirmed our success with three vessels and the Lamborghini. This year, 2025, we are going to have five vessels and the Lamborghini yacht, 78 m, very high value, 72 m Armani, 60 m Perini, 55 m Admiral, 24 m Picchiotti, plus the historical Lamborghini with a few details being changed. There is no other shipyard in the world with such a high number of vessels launched and delivered within the year. Also, remember that this year, we will deliver the two Perini Navi, and we will not have them in Monte Carlo since we do not have enough space. Quickly, this is Armani. This is 78 m. This is the 55 m. You can see the logic of the full custom. That is to say, every vessel is different from the others. This is unique.
Our shipyard is so unique in the world thanks to our ability to customize every unit and every vessel. This is the 60 m Perini Navi. This is a 24 m vintage Picchiotti. We have very high expectations. We have again the incredible success of Lamborghini. Now let's have a look at ESG, and I'm going to leave the floor to Dr. Filippi. Mr. Filippi, please.
All right. With regard to sustainability, as you can see, last year we have increased our rating, and we now have an A rating shifting from BBB. We carried out a whole set of initiatives, and we also have the sustainability report for the first year. I'm quite sure you had the chance to look at it as part of our balance sheet for 2024.
Obviously, this is the starting point for many new initiatives that we're going to implement in order to be the leaders in this field.
Thank you, Filippi. Now let's have a look at the results. Revenues are going from EUR 95.6 million to EUR 96.8 million, and therefore this is plus 1% as already anticipated versus the same quarter last year. EBITDA from EUR 16.1 million goes to EUR 16.7 million, and therefore we're going from EUR 16.8 million to EUR 17.3 million versus the same quarter last year. As for CAPEX, CAPEX is only maintenance CAPEX. With regard to the net financial position compared to last year, we are going from minus EUR 25 million to minus EUR 33 million. The shipbuilding revenues, as you can see, there's a steady growth: 2023, EUR 69 million; 2024, EUR 87 million; 2025, EUR 91 million.
You can also have a look at the breakdown by geographical areas. We have worked in the Americas with 48% of the portfolio. This means that we have done an excellent job. Europe, 41%, APAC, 11%. Instead, with regard to the length, we confirm our position as leaders thanks to our large experience in terms of a large size, more than 50 m. We have 80% of revenues. Let's have a look at the refit. You can see 2023, 12; 2024, 9; first quarter this year, 5.4. Here you can see a reduction. This is due to our intense activities on new builds, new building. This means a high number of launches. It means a lot of logistics, engineering between vessels that have just finished their carpentry work.
We have the fitting and then vessels going out for the last mile in the sea. This means that we are using a lot of space, of course. As a consequence, this has an influence on the refits. We can't start working on something if we don't have enough space. This is why during this stage, we had to slightly reduce the incoming orders with regard to refitting. Here as well, you can see the breakdown by geographical area. Europe amounts to 90% because, of course, vessels that are in America don't come to us for a refit. Apart from some cases, some situations where we are the only ones having certain skills. We have a client that always comes to us anyway. The client is here and the work will be done next month. That client comes from America.
Again, we confirm our experience in terms of large sizes. The EBITDA, as we said already, is at 17.3% versus 16.8% same quarter last year and 16.2% same quarter in 2023. You can see this very steady growth. With regard to the CAPEX, as anticipated already during this time period, we have decreased. Let's have a look at the portfolio. Now we will deliver, so it will go down, but at the same time, we will have new orders coming in. The new orders will enlarge the portfolio, so the net, but also the gross backlog. Let's have a look at the breakdown by brands. The large sizes are our core business with 78% referring to Admiral. Admiral has the largest sizes. Then Perini, 9%, and CA refit with more or less 10% as usual, and Lamborghini 3%.
With regard to geographical areas, you can see that the world is divided into three areas which are quite similar and quite equal. To conclude, we're confirming the guidance, the indications we communicated last year for 2025, so EUR 410-EUR 430 million. We're also confirming the objective of EBITDA margin, 17.5%-18%. We're also confirming our dividend policy, just like we did in 2024. We will continue with the same policy in 2025 with 40%-60% of net profit. We're also confirming the financial strategy with a maximum leverage of 1.5, referring to the total value of EBITDA. I know that this has been quite a short presentation, very linear, but showing you the good results we are obtaining, even if in the world there is preoccupation, of course.
As far as we are concerned, things are going according to our expectations and how it was communicated, just like it was communicated on the guidance.
Thank you to the management team. We now have an opportunity for questions. As a reminder, if you would like to ask a question, please use the raise hand function on your screen, or for those dialing in, it is star nine on the keypad.
Our first question today comes from Ms. Storer. Please, the floor to you.
Mi sentite?
Yes, thank you. Okay.
Grazie per aver preso le mie domande.
Thank you for accepting my questions. Can you hear me? Actually, I do have four questions. The first one. Based on my calculations in the quarter, you had an order intake of around EUR 80 million. Can you tell us what this is? I guess probably these are variations based on already existing contracts.
The second question is about the margin increase. Could you give us more details about the drivers? Also, looking at your P&L, we can see that the staff cost has increased quite a lot during the quarter. Could you give us some details and an explanation for that? The third question is about the circulating capital. At the end of the year, you told us and you showed us that there was an increase of receivables up to EUR 55 million, but then they were not reabsorbed during the first quarter this year, as if you did not receive or cashed some invoices. Could you comment on that?
Very last, can you give us an update on your partnerships with Lamborghini and Armani just in order to understand if there is something going on at the moment, if there is anything new, and also with any other players from the luxury world?
Yeah, I will reply with regard to the order intake. It went up to EUR 80 million. Yes, this is true. We have some variations referring to some contracts. We also have a new order, just like we forecast when we talked about the incoming in general. The margin went up. It went up even more than revenues. This is a phenomenon that we are monitoring at the moment. Indeed, we see that our purchasing power is increasing and also our purchasing quantities are increasing, as well as our process improvement.
You have noticed a slight drop in terms of resources, and this is due to the fact that our activities will increase even more. We are getting ready to increase our activities even more. Therefore, in line with our policy, those delicate activities that require know-how, not just due to risks and also with regard to the control of the know-how, we have acquired some new resources for that. With regard to PFN, it increased, but in general terms, it is still at minus 33. Indeed, in the first quarter, we are missing the down payment for the new orders. We knew that the time would be longer, that it would take more time, but this is manageable and it is all under control. You asked me about partnerships with Armani. We launched their first project for external lines and also the interior.
We will launch the second project by the end of the year. With regard to Armani, we will have to sell with their brand. I'm not sure if we will manage to do that during the year. Probably we will, but I can't confirm it. Lamborghini instead is still going on, of course. We're now working for an extension of the partnership. As you know, just like since the beginning, we have always tried to create some partnerships with brands from the luxury world. Until now, we have had many new projects. Since now, we're going to rebalance our activities and we will go back to widening up our partnership projects in the luxury world. Yes, we will increase the number of partnerships. Thank you.
Next question from Mr. Brilli. Thank you.
[Foreign language] Sì, buonasera, mi sentite?
Can you hear me?
Yes, of course, we can hear you. Thank you.
[Foreign language] Dottor Brilli, la sentiamo.
Mr. Brilli, we can hear you.
[Foreign language] Pronto? Pronto.
[Foreign language] Dottor Brilli, la sentiamo? Prego.
Yes, we can hear you. You can go ahead with your question.
Mi sentite?
Sì.
Yes, you can proceed with your question.
[Foreign language] Il problema sia nell'audio del dottor Brilli. Passiamo ora alla domanda del dottor Paladino. You sent it?
Let's now move to another question, maybe.
[Foreign language] Dottor Paladino, a lei la parola.
Mr. Paladino.
[Foreign language] Sì, grazie.
The floor is yours.
Thank you for your presentation. Actually, I have two questions. I'd like to know from you. If you could give us some details on the semi-custom line, could you give us an idea of its percentage on the revenues or about the production mix?
The second question is about circulating capital and
[Foreign language] la maggiore esposizione al shipbuilding, però non so se è legata a quello.
Could you give us some details about that? About the working capital.
Yes, with regard to the semi-custom, at the moment we have four lines. So four different sizes as part of the semi-custom, always in line with our vision, that is to say very prestigious, high-value materials, either aluminium or steel, because you know that apart from the project Lamborghini 63, you know that based on our logic and also based on our production policies and also our ESG policies, we do not have fiberglass projects at the moment.
The semi-custom line amounts to 22-23% of our portfolio, but we think that with the models, with the models that we are now presenting to the market, last month we also produced a new 42 meter, very interesting one. I'm quite sure that we will go up by 10%. With regard to your specific question on the working capital, now I'd like to leave the floor to Mr. Filippi.
With regard to the evolution of the working capital, at the moment we see an expansion, an increase in the working capital, and this is linked to the various orders we have, all the vessels that we're now finishing and which will have to be delivered by the end of the year. Of course, in some cases, we haven't reached the milestone in order to invoice them, but anyhow, we're working on them.
Of course, it is going to be shown on the working capital and also on the P&L. Mr. Paladino, you are right, of course. The stock is related to the work we are carrying out at the moment, and also the progress of the orders is in line with the economic incoming. That is to say, we are in line with the forecasts, the timing, and the value forecasts. Thank you. Thank you, Mr. Paladino.
Now we will try to get the floor back to Mr. Brilli.
Noi la sentiamo, Dottor Brilli, prego.
We can hear you.
[Foreign language] Scusate, ho avuto un po' di problemi con.
Sorry, I am having some technical problems. Thank you for giving me the floor. Good afternoon, everybody. I have two questions.
First of all, if you could give me some details on the orders, could you give me some information on the backlog 2025, if it is still the same, or if due to the new orders, if it has changed due to the new orders and the incoming orders. We said there was around EUR 1 billion being negotiated, and usually there is a 50% success rate, so EUR 500 million of potentially signed orders between now and the end of the year. Do you expect these numbers to be confirmed? In case you do receive these orders by the end of the year,
[Foreign language] per fare anche degli stati di avanzamento lavori già su questi ordinativi che dovranno entrare nel corso del 2025?
[Foreign language] Sì, credo, grazie.
What is the progress status, and is it possible to make any forecasts on the progress status for these orders that will arrive between now and the end of 2025?
Yes, with regard to the order trend, it is in line with our forecasts and as anticipated during the conference call full year 2024. What happened? Why are we saying that it is taking slightly longer? Of course, all the things we know, all the things we are observing, that is to say the stop and go news, ups and downs due to the American president, and nobody could ever have expected such many changes and so many ups and downs. Also the conflicts in the world, of course, and there is absolutely no step forward being made by, well, the American president. Therefore, you know, this is the situation that has determined a time shift.
We closed one in the first quarter, and we have many more deals and negotiations. Hopefully, we will not receive any new or devastating news if the situation does not change. I am quite optimistic, and I think that we can say that, of course, with a few days' delay, but we will manage to finish all the things we had planned. With regard to the incoming orders, we can confirm what we announced during the last conference, and for sure, these incoming orders will allow us to have the 10% down payment as usual. Of course, all the negotiations we manage to close by August, for all of them, we will manage to see the second work status, progress status.
We have closed three in the first quarter, we closed another one in the first quarter, and so on, we will have some more contracts, of course. Again, as I said, hopefully, there is no bad news, no devastating news, or crazy news. Thank you.
[Foreign language] Grazie, dottor Brilli.
Thank you, Mr. Brilli. I do not see any requests for questions, so we will wait another few seconds just to give all the participants the time to ask another question. Thank you.
[Foreign language] Non essendoci ulteriori domande, lascio la parola a...
Right, that means there is no other question. Now the floor goes to the management team for the final conclusions. Thank you.
Again, I would like to thank all of you for taking part in this conference. One more time, I would like to say that we are extremely satisfied with the results, despite the unforeseeable bad news.
Also, for the first quarter, I'm technically sure and convinced that we will continue working with our many clients. What shouldn't happen is receiving bad news or devastating news, like the news we received during the first quarter. Of course, in that case, that news would not destroy, but for sure, it would slow down our forecasts, incoming forecasts, and our calculations, just like in any other company and in any other trade sector. Thank you again, and see you soon.
Grazie.
Thank you.
Grazie a tutti.
Thank you, everybody.