Growth driven by increased construction activity
Grand Banks Yachts, manufacturer of luxury yachts under the Grand Banks, Eastbay and Palm Beach brands, saw its quarterly sales increase by 37.8%, reaching S$40.1 million at the end of March 2025. This momentum is fueled by an intensification of production rates at its Pasir Gudang site in Malaysia, which specializes in units from 42 to 107 feet.
Cumulative sales for the nine months came to S$107.3 million, up 14%. The Group booked 26 firm orders over the period, seven of which were for on-demand construction.
Margins under pressure despite stronger order book
Despite this sales momentum, the Group's net income fell by 42.4% in the third quarter to $2.3 million, due to higher resale volumes of low-margin boats and investments in ranges. Nine-month results also show a 9.7% drop in net income.
Backlog stood at $119.5 million at the end of March, up almost 9% on December, a strong indicator of a solid product portfolio and customer confidence.
A redesigned production facility to meet demand
To support this growth, Grand Banks has commissioned a new composite unit at Pasir Gudang in March 2025. This site offers 25% more space, enabling the construction of larger, more energy-efficient units. The aim is to reduce delivery times while increasing the perceived quality of finishes.
Outlook and international expansion strategy
With S$51.4 million in cash and cash equivalents (+24.2% in three months), the Group has the resources to invest. Two land acquisitions are planned in Newport (Rhode Island), with a shareholder vote scheduled for June. The shipyard is also closely monitoring new US tariff measures, likely to impact deliveries to its main export market.
Grand Banks pursues its growth trajectory by consolidating its industrial facilities and global network. While short-term profitability remains affected by product arbitrages and the sales mix, the increase in the order book and the extension of its Malaysian site confirm the group's strategic anchorage in the high-end yacht segment. To be continued: the impact of planned acquisitions in Newport and the behavior of the American market in a shifting geopolitical context.
