Grand Banks Yachts’ Q3 revenue increases by 37.8% YoY
Luxury yacht manufacturer Grand Banks posts almost a 38 per cent year-on-year revenue increase, thanks to increasing boatbuilding activity. However, a higher proportion of lower-margin trade-in boats and product enhancement costs has caused the company’s gross profit margin to decline.
The group, which manufactures yachts under the Grand Banks, Eastbay and Palm Beach brands out of its manufacturing yard at Pasir Gudang, Johor, Malaysia, reported a 42.4 per cent drop in net profit to S$2.3 million for the third quarter ending 31 March 2025 from around S$4.0 million for the same quarter last year.
The company’s net profit for the first nine months of FY2025 dropped 9.7 per cent to S$9.9 million compared to S$10.9 million in the corresponding period in FY2024. The decline, the luxury yacht manufacturer says, has been impacted by a sales mix with a higher proportion of lower-margin trade-in boats and costs associated with product enhancements.
Revenue for the third quarter of FY2025 increased 37.8 per cent to S$40.1 million from S$29.1 million the previous year. Revenue for the first nine months of FY2025 rose 14.0 per cent to S$107.3 million, up from S$94.1 million in the first nine months of FY2024. Grand Banks attributes this to increasing boatbuilding activities.
The group recorded 11 new boat orders in the latest quarter, including seven build-to-order, two trade-in boats, one pre-owned boat and one stock boat. This brings the total orders for the first nine months of FY2025 to 26.
Grand Banks, which manufactures yachts ranging between 42ft and 107ft across its brands, has a net order book standing at S$119.5 million end-March 2025, up 8.8 per cent from S$109.8 million at end-December 2024.
Grand Banks says it remains confident about the long-term outlook. According to the company, its balance sheet remains healthy, with cash on hand rising 24.2 per cent to S$51.4 million as of 31 March 2025, up from S$41.4 million at end-December last year.
To capitalise on the growing demand for its boats, it unveiled a new composite manufacturing facility in Pasir Gudang, Johor, Malaysia, in March 2025. With 25 per cent more usable space, the upgraded yard will support the construction of larger, sleeker, more energy-efficient yachts and reduce wait times for customers.
In April 2025, the group appointed Lynn Fischer as global chief marketing officer, who will accelerate Grand Banks’ global marketing strategy and elevate its brand presence across key markets.
The group has also proposed to acquire two properties in Newport, Rhode Island. An extraordinary general meeting will be held in June 2025 to obtain shareholders’ approval.
Grand Banks says it is closely monitoring the implications of recent tariffs announced by the US government and is assessing the potential impact on its business. Basil Chan, chairman of Grand Banks, says: “Notwithstanding current geo-political and economic challenges, the group continues to implement growth initiatives and invest for the longer term. The expansion of our Malaysian facility and the proposed acquisition of the Newport properties will strengthen our global positioning and branding. Despite global uncertainty, the Group remains confident that it can deliver long-term shareholder value.”
Mark Richards, CEO of Grand Banks, says: “The higher net order book demonstrates the strong customer confidence in our ability to deliver premium craftsmanship, customer service, and innovative products. We continue to invest in new product development at our state-of-the-art manufacturing facilities, whilst strengthening our market presence in the United States of America. These investments will lay the groundwork to meet future demand.”
