Yachting Art Magazine

A few days after the Chinese group Weichai took control of Ferretti (Ferretti Yachts, Custom Line, Itama, CRN, Wally, Pershing), the Italian luxury yacht builder has published quarterly results that are under pressure. However, the slowdown in sales and orders had already begun well before the arrival of the new shareholder. Faced with geopolitical tensions in the Middle East and a more cautious business climate, Ferretti is seeing its business slow down, but continues to maintain high margins thanks to its ultra-premium positioning and a strong order book. This is a crucial strategic equation for Weichai, which is now ushering in a new industrial phase for the Italian superyacht leader.

The Italian luxury yacht specialist Ferretti has had a more challenging start to the year following several years of sustained growth.

In the first quarter of 2026, turnover from new yachts stood at 302.1 million euros, compared with 328.5 million a year earlier, representing a fall of 8 per cent.

Net profit also fell:

• €21 million in the first quarter of 2026;
• compared with €23.9 million a year earlier;
• representing a fall of 12.1 per cent.

But the most worrying sign concerns orders for luxury yachts. Quarterly order intake fell by 33.6 per cent to €179.6 million, compared with €270.6 million in the first quarter of 2025.

However, this decline in sales and orders cannot be attributed to Weichai’s recent takeover of Ferretti. The market slowdown had already been underway for several months and primarily reflects global geopolitical tensions, particularly in the Middle East.

The Italian group cites delays in contract signings as well as postponed deliveries in several strategic regions of the global superyacht market.

The Middle East is undermining the global superyacht market

The superyacht market remains heavily dependent on clients from the Middle East, a region that has historically been crucial for very large luxury vessels.

However, geopolitical tensions in the region have immediately weighed on Ferretti’s sales figures.

Orders in the Middle East & Africa region fell by 33.9 per cent to 53 million euros.

The Americas recorded an even more dramatic fall:

• €13.3 million in orders;
• representing an 87 per cent year-on-year slump.

Against this challenging backdrop, Europe has become Ferretti’s main commercial driver:

• €99.1 million in orders;
• growth of 28.2 per cent;
• accounting for over 55 per cent of the group’s global orders.

The Asia-Pacific region also continued to grow:

• +35.2% growth in orders;
• €14.2 million in new orders;
• +152.6% increase in regional turnover.

This Asian momentum partly explains Weichai’s strategic interest in Ferretti. The Chinese group intends to strengthen the Italian manufacturer’s presence in the Asian luxury and high-end yachting markets, where demand remains structurally buoyant.

Why Ferretti’s margins are holding up despite the fall in orders

Despite the slowdown in luxury yacht sales, Ferretti continues to safeguard its profitability.

Adjusted EBITDA stood at €48.7 million, compared with €52.5 million a year earlier.

Crucially, the EBITDA margin rose slightly:

• 16.1% in the first quarter of 2026;
• compared with 16% in the first quarter of 2025.

This stability in margins is one of the key positives in Ferretti’s 2026 results.

The group attributes this resilience to several factors:

• a more profitable product mix;
• a focus on the most premium models;
• better absorption of fixed costs;
• greater discipline on manufacturing costs.

The superyacht segment remains central to this strategy. Although no new orders were recorded in this category during the quarter, production capacity remains virtually fully utilised until 2029.

In other words, demand from the world’s wealthiest individuals for ultra-luxury yachts remains strong despite geopolitical tensions and the slowdown in the global luxury goods market.

Ferretti’s order book remains substantial despite the slowdown

Despite the weakness in new orders, Ferretti retains significant industrial visibility thanks to its order book.

The total backlog stands at:

• €1.717 billion;
• a level that is virtually unchanged compared with the end of 2025;
• down by just 2.9 per cent year-on-year.

The net backlog — corresponding to orders yet to be delivered — standsat €722.3 million.

The group also states thatnearly €470 million in revenue is already secured for the 2026 financial year.

This visibility enables Ferretti to maintain its annual targets despite the slowdown observed in the first quarter.

The Italian manufacturer is still targeting:

turnover of between €1.25 and €1.265 billion;

an EBITDA margin of between 16.2% and 16.6%;capital expenditure of between €70 and €75 million.

Ferretti’s cash position deteriorated sharply in the first quarter

However, the slowdown in orders is beginning to weigh on the group’s financial position.

The net financial position fell to €18.4 million, compared with €111 million at the end of 2025.

This decline is mainly due to:

• a reduction in customer deposits;
• delivery delays;
• a slowdown in contract signings;
• an increase in working capital requirements ahead of the European boating season.

Working capital requirements now stand at €279.7 million, representing an increase of €118.2 million over the quarter.

Ferretti nevertheless believes that this deterioration is temporary and expects a gradual improvement from the second quarter of 2026 onwards.

Can Weichai revive Ferretti despite the slowdown in the luxury market?

Weichai’s recent takeover of Ferretti now marks the start of a new strategic phase for the Italian luxury yacht builder.

The Chinese group’s objective seems clear:

• to accelerate expansion in Asia;
• to strengthen the ultra-premium segments;
• to develop large aluminium yachts;
• and to expand high-margin activities such as refits, charter and yacht management.

Investors are now keeping a close eye on Weichai’s ability to support Ferretti’s growth in a luxury yacht market that has become more volatile. However, the fact that the annual targets have been maintained shows that the Italian builder remains confident in the structural strength of global demand for superyachts.

Ferretti retains several major strengths in the global luxury yacht sector:

• iconic brands such as Riva, Pershing, Wally and Custom Line;
• margins among the highest in the sector;
• a massive order book;
• an ultra-high-net-worth clientele that is relatively resilient to traditional economic cycles.

The results for the first quarter of 2026 nevertheless show that even the global superyacht market is no longer entirely immune to geopolitical tensions and the slowdown in the international luxury goods trade. Weichai will now have to demonstrate its ability to support Ferretti in this new, more uncertain environment.