Welcome to The Italian Sea Group First Half Results Presentation for 2025. 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. There will be an opportunity to ask questions at the end of the presentation. I will now give the same announcement in Italian before I hand over to your host today. [Foreign language].
[Foreign language]
Good morning everyone, good afternoon. Thank you so much for being connected with us today.
Let's kick off our conference call, and I would like to have Giovanni Costantino speak, the Founder and CEO of The Italian Sea Group.
[Foreign language].
Good evening, good afternoon everyone. Thank you for attending this conference call. I would like to have a quick look at the executive summary. Afterwards, we'll have some time for your comments. If we have a look at the first half of 2025, we have revenues amounting to EUR 186 million, - 1.4% versus the first half of 2024. The EBITDA amounts to EUR 30.4 million, namely - 6.3% versus the first half of 2024, with a margin of 16.3%. The gross order book amounts to EUR 1.19 billion, and investments over the period amounted to EUR 1.5 million. The net financial position equals EUR - 63.2 million. If we have a look at the general situation from a geopolitical point of view, the international scale sees a slowdown that is distributing and spreading a lot of uncertainty, even for ultra-high net worth individuals.
This causes us to review the guidance for 2025, thus reducing the previous forecast and outlook we had, namely EUR 410 or EUR 430 million revenue, to EUR 350 or EUR 370 million. Such a reduction entails a reduction or a decrease in the EBITDA margin too, namely from 17.5% we go to 16.5% or 17%. We are still the second player in the world considering the in-progress activities above 50 m of length. We have a lot of energy in the progress we can show. This confirms our leadership. In fact, we have nine yachts. Please show the other slides. As you can see, we have nine yacht launches this very year. The first launch is a 78 m yacht. It has already been delivered. The second is a 55 m. It has already been delivered. The third and the fourth are two yachts by Perini Navi, namely 59 m and 58 m.
They are still in progress. They are under completion. Let's see. We have a 72 m, Admiral Armani. In this case, it's going to be delivered these very days. We have a Perini Navi, a sailboat of 60 m that has already been delivered. We have 24 m long Picchiotti yachts. We are going to launch by the end of the year an additional 50 m, Sima Custom yacht and another Perini Navi, 56 m long. It's always very important to remark what we have done. Over the year at Monaco Yacht Show, in 2023, we had five yachts over there. In 2024, we had four boats over there. This year, we are going to have again five or six yachts. As you can see, we have an increasing level of difficulty and big sizes. The first yacht is 72 m, by Armani. The second is 78 m long.
We have a 55 m long boat. Then we have the 60 m by Perini Navi. The fifth is Picchiotti , 24 m long. The sixth is worldwide icon of Lamborghini 63. If we go back to the economics and financial data, as I said before, 1.4% less than last year, considering the revenues. If we have a look at the EBITDA, we have 6.3% less, from 32.4 up to 30.4, with an EBITDA margin going from 17.1% to 16.3%. This reduction entails some net profits, in the quantities or the volume of activities. In fact, if you have a look at the net profits, we have decreased by 58.0%, from 29 up to 12.2. The net financial position goes from - 12.5 in the first half of 2024 to - 63.2 in the first half of 2025. The shipbuilding sector keeps its own energy, has the same power.
As you can see, we have a + 3.3% for new ships, from 167.2 up to 172.6. If we have a look at the different markets, we can see that we have the same breakdown. America is first, then we have Europe, and third is the APAC region. If we consider the size, the higher revenues accounted for 82% in sizes higher than 50 m. I'm talking about our leader positioning. If we have a look at the refit sector, we have a decrease, from 22%, considering 2024 and 2025. We have - 52% because we had to reduce this kind of sector because we have a huge quantity of different deliveries. As you can see, we are ranking second at the worldwide level. This absorbed all the corporate spaces, the premises in Carrara and in La Spezia.
It's going to be the same in several years because the yachts about to be delivered and launched are always seven or eight. This requires a lot of space, out of the hangars, but also at sea. That's why we are redesigning the refit business, and it's going to be shrunk and reduced to a few orders with big sizes and with a high value. The second reason why the refit business has decreased by 50% is also due to the fact that we needed to follow the general warranties, the support to the customers for all the yachts delivered in the last two years, and even the years before that. We must guarantee this ongoing support to our customers, and that's why we wanted to focus on our historic and continuous or ongoing customers.
The EBITDA and CapEx, as we said before, have a decrease by 6.2% compared to 2024, but we are at a higher rate compared to 2023. 2024 was a very bad year given the ongoing situation, the worldwide scale. That's why I think that our results are very satisfactory. The CapEx, as we said before, is decreasing. We have finished premises. We are enlarging our offices as well. This is still in completion, but we will have also the economic impact of this in 2025. If we have a look at the gross backlog, we have a huge trend. We have the net backlog, which is rightly so decreasing because we are delivering on a regular basis all the yachts. The result is reflected in the revenues. We have ongoing negotiations, and they are very long. They take a lot of time.
We didn't lose any of the negotiations we have on hand. I'm talking about the hot negotiations. I'm talking about more than 10 negotiations. Unluckily, there are customers that are postponing decisions or are waiting to see what happens because even considering the trend of their own businesses due to the conflicts, the wars, and the oscillations, even in the tariffs imposed by the U.S. president. They are still waiting to see what will happen in the future. I would like to wrap up this topic and show that we have reduced the guidance. We are now at EUR 353.70 million. EBITDA margin 16.5%-17%. The financial leverage is going to reach a maximum of 1.5 x the EBITDA.
[Foreign language]
I think that there are no other information to be given to you, but we are always at your disposal for any and all comments or questions.
Thank you to the management team. We now have an opportunity for questions. Please remember if you're asking your question in English, please stay in the English channel. The same, if you're asking your question in Italian, please stay in the Italian channel. Thank you. If you would like to ask a question, please use the raise hand function on your screen, or for those dialing in, it's star nine on your keypad. Once your name is announced, please unmute your line, state your company name before asking your question. Thank you. First question today comes from Mr. Niccolò Stoder. Please, the floor to you.
[Foreign language]
Can you hear me? Great. Good afternoon, everyone. I've got a couple of questions. First, to reach EUR 350 million, EUR 470 million for new guidance, which are the assumptions to be made on the orders up to the end of the year? Which are the orders needed to reach that goal? Is it rightful to think that EUR 150 million or EUR 200 million are going to be acquired or must be acquired to reach that new guidance? I would like to ask the second question. I see EUR 4.4 million in the EBITDA, I'm talking about the extraordinary charges. Can you please tell us something about this? Yes. I think that around EUR 300 million of incoming orders, it's in between, let's say, EUR 250 million and EUR 300 million. It is absolutely necessary for this volume of orders to enter. I'm not considering what we actually have in progress. I'm not considering any risks.
I'm not envisaging any risks if we consider these amounts of orders. If I consider the type of negotiations that are actually in place, in that case, I think that there are no risks we can make it. If the first conflicts should reach an end, and from a strategic point of view, we had fewer sanctions from one side, and if we are actually stabilizing in the next 30 days, 60 days, the ongoing situation of the tariffs, I think that we could actually exceed what we have on hand, namely EUR 250 million or EUR 300 million, what we actually need to reach the guidance goal. If the situations had to reach a worsening in the tensions with Ukraine from one side and an instability due to Trump's tariff with Gaza in the middle of it, in that case, there could be some doubts or some uncertainties.
Maybe even our customers would not be willing to sign some contracts or orders and the purchase of our products. Talking about the item of EUR 4.4 million, I'd like to have Marco Carniani, the Deputy Chair, talking about it. What you can find under the EBITDA related to one-off costs are some different charges for the management, for the settlement of some costs that we have detected in the audit action by the auditing firm. They are not part of the core business or operating costs, but by nature, they are to be put under the EBITDA indicator. Thank you.
Currently, we do not have any other questions queued. We will wait a few seconds. Next question today comes from Mr. Matthias Paladino. Please, the floor to you. Mr. Paladino, I kindly ask you to unmute your line.
[Foreign language]
Can you hear me?
Yes.
Thank you so much for the presentation. I've got a question about the Sima Custom. We have a look at the geopolitical situation, tensions, and the tariffs. Do you think that these can unlock some customer negotiations, customer contracts? Can you give us a clearer view about this? Yes, for sure. Tariffs are not directly impacting on our deals because our yachts have big sizes and there are no registrations to be done in the U.S., namely where you actually have tensions about that. They are not impacted by this kind of factor. What is actually impacting the yacht contract signature is the business of our customer because maybe the business of that customer is relating or connected with the U.S. or some businesses or activities in the U.S. They could have some changes in the profits and the financial results of the company.
Actually, our business is impacted by the uncertainty. That is a cross-cutting uncertainty in that case. It is not directly impacted by it. It is not directly having a hold on it.
Okay, got you. Thank you, Mr. Paladino, for your question. Currently, we do not have any questions queued. We will wait just a few seconds to give everyone the opportunity to raise their hands. Next question comes from Mr. Francesco Brilli. Please, the floor to you.
[Foreign language]
[Foreign language]
Great. Yes, we do. Good evening. Thank you for the presentation. I would like to have an insight about the previous question. I would like to understand something more about it. Which is the order quantity? Are we talking about EUR 150 million or EUR 250 million? If you want to reach the guidance for 2025, I would like to have a follow-up about this. The confidence level we have on these orders in the second semester, I seem to understand that this also depends on the evolution of the socio-economic situation. Is there actually some extent of arbitrary effects on the assumptions of new guidance? I have another question. Can you please tell us something more about the new line?
If there are some new orders entering, is it something that can be done in this very moment with the different orders that we have pending right now? Are we going to have something different when orders are going to resume? I'm talking about the need for incoming orders that should or could confirm the new EUR 350 million, EUR 370 million guidance. We actually need to conclude the ongoing negotiation for EUR 250 million or EUR 300 million. The confidence level relating to this can be split into three different levels. If the situation is going to be stable the way it is, we think that due to the progress in the most significant negotiations we have on hand, we think we can actually meet that goal and satisfy the reviewed guidance we talked about today.
If the overall situation, considering Trump, Gaza, and the Ukraine conflicts, was a dramatic worsening, we have incoming results at stake and at risk. Even today's guidance is at risk, but not by far, to be honest. If instead the war, conflict, and instability situations in the U.S. would improve, if they were to improve, we could have the opportunity to exceed these results by far. We could also exceed the EUR 250 million, EUR 300 million if you consider the fact that the wars and the instability situations could improve. In that case, we could also overcome today's guidance levels. We are a bit on hold due to the geopolitical situation. Everything is going very smoothly within the company, including the commercial and trade part. We have customers that are all waiting to see what happens. Thank you. Thank you, Mr. Brilli.
Thank you, Mr. Brilli. Currently, we have no questions queued. We will wait just a few seconds. We have a follow-up question from Mr. Niccolò Stoder. Please, the floor to you.
[Foreign language].
It's me again. I would like to have an insight about what you said, namely the refit division. You need to have the yachts moved from one place to the other, so even the refit sector is impacted. How do you manage it? Are you actually saying no to some requests and you say, "We cannot get this work because we don't have space"? If it is the case, don't you think that in the long term, these customers that would like to be your own customers are maybe going elsewhere? This is actually an issue we are assessing. This is the year in which the impact of space use was very high and significant. We will bring back the refit business by moving even more so the size of these interventions.
This way, we could decrease the spaces to be used in a few slots, having though big sizes and entailing a huge turnover. The average part, so the medium-sized part, could be lost. From a strategic point of view, if we consider the fact that we are pushing on the new yachts through our position, we are becoming more and more a market leader, not only due to the quantity capacity we have, but also given the great quality we are ensuring. In this case, we are characterizing our brands with this great quality more and more. We are actually having an evolving growth. This obliges us to get a secondary business in the refit, but we need to make some changes in the size that are going to be having consequences even in the near future.
We are not going to lose some significant parts, but we are going to be recognized not only in new shipbuildings, but also in new refittings, going towards big sizes.
[Foreign language]
It's very clear. Thank you so much.
Thank you, Mr. Stoder. If there are no other questions, I will now hand over to the management team for any final comments. Please.
[Foreign language].
I would like to thank all of you for attending this meeting. I have nothing more to say. I would like to share with you that I'm actually, and we are actually, very satisfied from, let's say, an international point of view as well because we are very satisfied. We're very glad and happy. We are here to keep on working and having so many high-quality successes with great regular timing and deliveries. We are confirming even our organizational leadership right now. We are actually undergoing the consequences of the current situation. Right now, we are surfing this wave and would like to have this quantitative and qualitative leadership that is possible thanks to our management team. Thank you so much for attending this meeting, and I really hope to see you all in the next quarter with less war turmoils or market perturbances. Thank you so much, and bye.
Thank you. This presentation will now come to a close.