Distressed Luxury Yacht Builder Italian Sea Group Plans Equity Raise

Luxury yacht builder The Italian Sea Group has posted a net loss for 2025, and despite a plan to issue shares to bring in more capital, its board of directors has flagged "significant uncertainties . . . regarding the company's ability to continue as a going concern."

TISG's financial standing has been deteriorating since 2025 due in part to a $70 million increase in costs, which its board of directors attributes to "operational inefficiencies" and "misconduct on the part of managers who have left the company." Revenue is also down by a quarter, from $460 million to $345 million. EBITDA swung hard to a loss for the year, down from $80 million in 2024 (a healthy 17 percent profit) to negative $115 million in 2025.

Given the losses, TISG's share capital has fallen below Italy's minimum legal limit for a joint stock company. Its shares are trading in the range of $1.15, with a market cap of about $70 million. To raise capital and stabilize the balance sheet, the board has drafted a shareholder resolution asking for permission to issue a combination of debt and equity equal to $175 million, either in cash or in kind. Options include debt-for-equity swaps for unpaid suppliers.

TISG's board said that it is reasonable to expect that the firm will continue as a going concern for 12 months, but noted that there were multiple factors outside of its control, and said that a final plan has yet to be formulated. For this reason, the company "does not have sufficient information to make precise and reasonably reliable forecasts regarding the medium-term performance of its operations" at this time, the board warned.