“Despite turbulent times, the group has delivered record revenue and sustained a strong order book, reinforcing its growth trajectory,” says Basil Chan, chairman of Grand Banks as the company released its financial results for the year ending 30 June 2025.
But this comes as its earnings are down 14.8 per cent year on year, to S$18.2 million (Singaporean dollars – SGD). That’s been caused by the large number of trade-in boat sales which typically have lower margins, higher production hours, higher material costs and weakening of the US dollar. Thus, gross profit for the second half (2H) of FY2025 and FY2025 declined 1.4 per cent and 4.5 per cent to S$26.7 million (2H FY2024: S$27.1 million) and S$48.5 million (FY2024: S$50.7 million), respectively.
Grand Banks’ gross profit margin stood at 28.1 per cent and 29.9 cent in 2H FY2025 and FY2025, respectively, compared to 39.5 per cent and 38.0 per cent in 2H FY2024 and FY2024, respectively. The gross profit margin on the build-to-order boats for FY2025 was a healthy 35.8 per cent if trade-in boats were excluded, says the company’s statement.
The company, which manufactures luxury motor yachts (under Grand Banks, Eastbay, and Palm Beach brands), reported revenue of S$162.3 million and a net order book of S$156.6 million. Revenue for the six months ending 30 June 2025 rose 38.6 per cent to S$95.1 million from S$68.6 million a year ago. On a yearly basis, revenue increased 21.4 per cent to S$162.3 million year-on-year from S$133.7 million in FY2024.
The revenue increase was largely driven by the sale of nine trade-in boats in FY2025, of which seven were sold in 2H FY2025, compared to none in FY2024. The increase of revenue was also driven by the sale of two pre-owned boats and two stock boats sold in 2H FY2025, compared to none in FY2024.
Total operating expenses for FY2025 increased 10.9 per cent to S$23.9 million from S$21.6 million in FY2024 in line with the higher revenue.
Net order book as at 30 June 2025 rose 30.5 per cent to S$156.6 million from S$120.0 million a year ago, lifted by orders for 33 new boats and 13 trade-in/stock boat orders, compared to orders of 20 new boats in FY2024.
To capitalise on the long-term growth potential of the industry, the group’s been busy during FY2025. It’s launched three new models and in June 2025, it acquired land in Newport, Rhode Island, USA to establish a strong presence in the Northeastern region of its main market. With operations already commencing, momentum will be ramped up at the Newport Marina in the coming months.
It’s also extended its composite manufacturing facility in Johor, Malaysia. That was completed in March 2025, and enables advanced technology and greater control of every stage of production, helping to reduce wait times.
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.
After the group assessed the impact of the revised tariffs announced by the US government on 1 August 2025 on its existing contracts, it’s concluded that they had no material effect on its financial results.
Demand for luxury boats remains healthy despite short-term headwinds such as economic uncertainty, elevated interest rates, a higher cost environment, the potential impact of tariffs implemented by the US government and potential disruptions to the supply chain due to geopolitical developments such as the Russia-Ukraine war and conflicts in the Middle East, says the company’s statement. It will continue to closely monitor global developments and focus on its sales and marketing efforts, maintain a strong balance sheet and improve on its net order book to buffer against near term economic and business uncertainties, it says.
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