Luxury builder of Grand Banks, Palm Beach, and Eastbay yacht brands, Grand Banks Yachts Limited has posted its financial results for the six months ending 31 December 2025 (1H FY2026) with sales rising but profits dropping 60 per cent.
Grand Banks reports a 6.2 per cent increase in revenue to S$71.4 million for 1H FY2026 and a net order book of S$144.7 million.
However, the group has reported profit before tax of S$4.5 million in 1H FY2026 compared to S$11.4 million for 1H FY2025 . Net profit was S$2.9 million in 1H FY2026 compared to S$7.6 million in 1H FY2025, down more than 60 per cent year on year.
Gross profit fell 19.3 per cent to S$17.5m, with gross margin falling to 24.6 per cent from 32.4 per cent.
The boatbuilder has attributed this to the higher proportion of lower-margin trade-in/pre-owned boats and less favourable foreign exchange.
The company reported a net order book of S$144.7 million as of 31 December 2025.
Grand Banks Yachts reports orders for eight built-to-order boats and four trade-in/pre-owned boats during this period.
Sales of trade-in/pre-owned boats, as well as increased boatbuilding activities at its manufacturing facility in Pasir Gudang, Johor, Malaysia, increased revenue by S$4.2 million to S$71.4 million against S$67.2 million in 1H FY2025.
According to the yard, total operating expenses for 1H FY2026 increased to S$12.4 million from S$10.8 million year on year, as a result of higher costs related to boat shows and events and higher payroll costs, partially offset by lower depreciation.
Long-term investments to bolster future
The group says recent strategic investments are intended to strengthen its long-term position.
In June 2025, the group acquired two parcels of land in Newport, Rhode Island (Newport Marina) in the US to build brand presence, service quality, generate sales opportunities and serve as a waterfront destination and a one-stop centre for factory-authorised service in the north eastern US.
This strategic acquisition followed the addition of the group’s composite manufacturing facility in Pasir Gudang.
In 1H FY2026, the group acquired the Wild Oats XI in October 2025. Renamed Palm Beach XI, the 100ft Supermaxi was upgraded with the latest marine technology that will later be incorporated into future boat models, further reinforcing the group’s reputation for hydrodynamic engineering, performance and efficiency on the water. Following these strategic investments, the group recorded higher finance costs from borrowings to fund them. Cash and fixed deposits declined to S$24.2 million as at 31 December 2025 from S$41.4 million a year ago, as the group built a higher number of inventory boats, comprising stock and demonstration boats, and acquired a number of trade-in/pre-owned boats. These boats, expected to be sold in the coming months, will contribute significantly and positively to the group’s performance.
Backed by the acquisition of the Newport Marina and expanded Pasir Gudang yard, the group has strengthened its business foundations to capitalise on the long-term growth potential of the global luxury yacht market. Basil Chan, chairman of Grand Banks, says:
“Despite uncertain times, we have made significant investments in the past year and have taken bold steps to expand our presence and operating capability, including enhancing our global branding. We are confident the returns from these investment initiatives will pay off in the long term. The board has declared an interim dividend for 1H FY2026, underscoring the resilience of our business.”
Mark Richards, CEO of Grand Banks, said: “We recorded an encouraging first half, as we continue to secure new orders and grow our sales pipeline. We have upgraded and expanded our yard in Pasir Gudang as well as our footprint across the USA, including our flagship marina at Newport. This year has been one of the most significant in the company’s history as we further strengthen our business foundation whilst ensuring we are well positioned to capture new business opportunities and enhance our brands’ awareness globally.”
Earnings per ordinary share for 1H FY2026 stood at 1.57 Singapore cents compared to 4.05 Singapore cents in 1H FY2025, while net asset value per ordinary share stood at 56.75 Singapore cents as 31 December 2025 (30 June 2025: 54.75 Singapore cents).
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