Princess Yachts has reported a return to operating profit for the year ended 31 December 2025, with operating profit of £17.6 million and adjusted EBITDA of £35.9 million. The Plymouth builder says the result completes a two-year operational turnaround following its acquisition by KPS Capital Partners in 2023.
The figures are particularly relevant to the 12-to-23.99-metre luxury-yacht market because Princess competes heavily in this size band with its F, V and S Class ranges. The improvement came despite lower overall revenue and a softer global leisure-marine market rather than through a simple increase in production volume.
Adjusted EBITDA rises by about 167 percent
Princess says adjusted EBITDA increased from £13.4 million in 2024 to £35.9 million in 2025, an improvement of about 167 percent. Compared with the £24.5 million adjusted EBITDA loss reported for 2023, the two-year swing amounts to £60.4 million.
Operating profit improved by £25.7 million from an £8.1 million loss in 2024, while profit before tax reached £9.4 million compared with a £17.0 million loss the previous year. The company attributes the change to higher gross profit per yacht, tighter cost control and operational improvements.
Revenue falls as production is aligned with demand
Revenue fell to £321.8 million from £378.1 million in 2024. Princess says lower production volumes and a deliberate effort to match output more closely with demand contributed to that decline, rather than pursuing volume at the expense of margin.
That approach is important in a market where builders have been managing elevated inventories and uneven demand since the post-pandemic sales surge. A smaller production base can improve working-capital control, but it also puts more pressure on each yacht to deliver the required margin.
2025 statutory accounts are still due at Companies House
Princess Yachts Limited's Companies House record currently shows its most recently filed statutory accounts as those for the year ended 31 December 2024. The 2025 accounts are due by 30 September 2026, so the newly announced figures precede the public filing of the full statutory document.
For that reason, the numbers in this report are the results announced by Princess and reported by industry publications rather than figures independently extracted from the 2025 Companies House accounts. The filing should provide additional detail on cash flow, balance-sheet movements and the underlying statutory result when it becomes available.
Turnaround continues into the 2026 model cycle
Princess has continued introducing and promoting new models during 2026 while rebuilding profitability. Its current range spans from yachts well inside LYG's 12-metre threshold through to larger models that sit beyond the site's 23.99-metre ceiling.
The key test will be whether improved margins can be maintained while new-model investment continues and market conditions remain selective. For now, the reported 2025 result represents a material improvement from the losses recorded during the earlier phase of the turnaround.
