Adjusted EBITDA rises by around 167 percent
Princess reported adjusted EBITDA of £35.9 million for the year ended 31 December 2025, up from £13.4 million in 2024. Operating profit reached £17.6 million, compared with an £8.1 million operating loss the previous year, while profit before tax moved to £9.4 million from a £17 million loss.
The scale of the turnaround is clearer when compared with 2023, when adjusted EBITDA was negative £24.5 million. Princess says the two-year improvement exceeds £60 million and reflects a sustained focus on manufacturing productivity, procurement, supplier relationships, quality and cost control.
Revenue falls as production is aligned more closely with demand
Revenue declined to £321.8 million from £378.1 million in 2024, reflecting lower production volumes and softer global market conditions. Princess says the reduction was deliberate in part, with production capacity being brought more closely into line with underlying demand rather than pushing volume at the expense of margin.
Gross profit per yacht improved during the year, suggesting the turnaround was driven by healthier economics on each build rather than by simply producing more boats. That distinction matters in the luxury-yacht market, where inventory pressure can quickly weaken both dealer margins and manufacturer cash flow.
The improvement continues into the first half of 2026
Princess says adjusted EBITDA increased again during the first half of 2026 despite fewer yachts being produced. Chief Executive Will Green described the business as more efficient and resilient after completing the main phase of its operational transformation following the 2023 acquisition by KPS Capital Partners.
For owners and buyers, a stronger balance sheet can support product development, dealer confidence and long-term after-sales support. It can also reduce pressure on a builder to discount inventory aggressively, helping preserve residual values across the wider ownership cycle.
Investment in new models continues despite lower volume
Product-development spending increased to £12 million in 2025 from £10.9 million in 2024. Princess says its five-year programme is targeting three new model launches each year, with recent projects including the F58, V65, X90 and C Class.
That continued investment is particularly relevant to LYG because much of Princess’s core range sits below 24 metres. The company enters the next phase of its strategy with a stronger operating platform, a more customer-backed order book and continued spending on new products and facilities.
Official sources: www.britishmarine.co.uk.
