In the first half of 2025, The Italian Sea Group (TISG) reported a moderate decline in both revenue and profit, a development that has drawn significant attention across the global yachting industry. According to the company's financial disclosures as of the end of June, total revenue stood at €186.8 million, marking a 1.4% year-on-year decrease.
Net profit dropped to €12.2 million—a sharp 58% fall compared to the same period last year, though this contrast is somewhat skewed by a substantial one-off gain in 2024 resulting from the sale of the Viareggio shipyard to NEXT Yacht Group for €21 million.
CEO Giovanni Costantino attributed the downturn to ongoing geopolitical and economic uncertainties, which he said have created a slightly less favorable market environment. The company's EBITDA stood at €30.4 million for the first half, down 6.3% from €32.4 million in H1 2024. The EBITDA margin also slipped from 17.1% to 16.3%, primarily due to a higher share of fixed structural costs as production values declined.
More notably, the company’s net financial position improved substantially, rising from –€12 million in December 2024 to a positive €63.2 million by the end of June 2025—indicating a significant strengthening of its balance sheet.
Capital investments reached €1.5 million during the period, while the order book climbed to €1.19 billion. TISG is maintaining its full-year revenue guidance in the range of €350 million to €370 million, with an expected EBITDA margin between 16.5% and 17%.
A key factor cited by Costantino was the rise of protectionist policies, particularly those introduced by the U.S. administration. These have reportedly created uncertainty among buyers, complicated cross-border transactions, and lengthened negotiation timelines—especially for large-scale yachts.
One American client, for instance, had planned to finalize a contract for a fully customized superyacht earlier this year, only to delay signing due to tariff-related complications. Coupled with an unstable exchange rate, such hurdles have made negotiations more complex and delivery timelines harder to predict.
Still, the CEO emphasized that the Group’s ongoing yacht builds are progressing smoothly. “In this challenging scenario, we are satisfied with the regular progress of the many projects currently under construction,” Costantino said. He credited the Group’s resilience to its robust brand identity, the trust built with an increasingly sophisticated international clientele, and the company’s continued excellence in design and bespoke service.
Notable projects currently underway include a 100-meter Admiral superyacht and a fully customized Perini Navi sailing yacht, both scheduled for delivery within the year. According to BOATPro data, TISG has 17 active superyacht projects across its seven brands—each offering unique design identities and targeting distinct market segments. These projects not only represent future revenue potential but also highlight the shipyard's ability to retain customer confidence amid market uncertainty.
For example, a recent contract with a North American ultra-high-net-worth client involved a 70-meter custom build featuring exclusive woodwork and modern design technologies—a vessel expected to become one of the flagship deliveries of the year. Despite the trade barriers and market slowdowns, clients like this remain willing to move forward with their orders, a testament to the perceived value and trust associated with TISG’s craftsmanship.
Operational efficiency has also become a focus area. Beyond traditional shipbuilding, TISG is exploring modular assembly techniques and lean production systems to reduce production time and manage structural costs. By shifting certain outfitting tasks off the main line into prefabricated modules, the yard aims to lower fixed costs and boost flexibility in scheduling and delivery.
The Group's multi-brand portfolio—which includes Admiral, Perini Navi, ISA Yachts, Cantiere delle Marche, and VSY—has positioned it well to navigate shifting market demands. Admiral is known for high-speed, modern powerboats with minimalist aesthetics, ideal for European and American clients who prioritize performance and style.
Perini Navi continues to excel in the realm of classic luxury sailing yachts, while Cantiere delle Marche focuses on steel-aluminum expedition vessels tailored for long-distance cruising. Meanwhile, ISA and VSY offer a blend of compact, semi-custom models with shorter build cycles and lower price sensitivity. This diversified offering not only cushions the company from shocks in any single segment but also allows TISG to optimize its production capacity across brands.
As of June 30, the €1.19 billion order book provides solid visibility into future revenues. With H1 revenue accounting for approximately 50% of the full-year guidance, and considering that the second half typically sees a spike in deliveries and new contracts as clients rush to finalize deals before year-end, the company still appears to be on track to meet its targets. If execution remains on schedule, full-year EBITDA margins may return to the 16.5–17% range as anticipated.
Placed in the context of broader global yachting trends, TISG’s first-half performance is reflective of a familiar narrative: protectionism, exchange rate fluctuations, and geopolitical instability continue to weigh on high-value luxury segments. Buyers are hesitant, negotiations are slower, and orders are delayed. Yet, builders with strong brands, reliable production pipelines, and differentiated offerings are weathering the storm. TISG, at least for now, remains in that category.
Industry analysts suggest that while the drop in profit is notable, it appears more cyclical than structural. With financial health improving, project momentum maintained, and long-term brand equity intact, TISG is still positioned as one of Europe’s premier shipbuilders. Should global trade tensions ease—particularly between the U.S. and EU—buyer confidence may rebound and postponed negotiations could swiftly convert into signed contracts.
For would-be owners still weighing their options, whether drawn to the imposing scale of a 100-meter Admiral or the timeless elegance of a Perini Navi sailing yacht, TISG is demonstrating a continued willingness to innovate and engage. Its improved cash position means that the shipyard is better equipped to support ongoing R&D, expand design capabilities, and deepen after-sales service—all of which contribute to its long-term competitiveness.
Despite a weaker first half, The Italian Sea Group continues to build on its reputation for tailored luxury, high-quality craftsmanship, and international credibility. If it can navigate the headwinds with precision, the second half of 2025 could yet prove pivotal—not just for TISG, but for the direction of the global superyacht market at large.