Ferrari NV ((IT:RACE)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Ferrari NV’s recent earnings call painted a largely positive picture, underscored by significant revenue growth, strong cash flow, and a robust order book extending into 2027. The company celebrated the successful launch of new models and notable sustainability achievements. Despite facing challenges such as U.S. import tariffs, foreign exchange headwinds, and lower deliveries due to model phaseouts, the overall sentiment was optimistic, with positive aspects outweighing the negatives.
Record Revenue Growth
Ferrari NV reported record revenue growth, with total revenues reaching approximately EUR 1.8 billion, marking a 7.4% increase year-over-year. The company also achieved strong profitability, with earnings before interest and taxes (EBIT) exceeding EUR 500 million, showcasing its financial resilience and market strength.
Strong Cash Flow and Upward Guidance
The company reported an industrial free cash flow of EUR 365 million, which led to an upward revision of its 2025 guidance. Ferrari has exceeded its profitability targets set for 2026 a year in advance, reflecting its robust financial health and strategic foresight.
Order Book and Launch Success
Ferrari’s order book extends well into 2027, driven by high demand and customer interest in new launches like the Ferrari Elettrica and 849 Testarossa. These models have contributed significantly to the company’s strong market position and future growth prospects.
Sustainability Achievements
The company has made significant strides in sustainability, achieving approximately a 30% reduction in Scope 1 and Scope 2 emissions, and a 10% reduction per car in Scope 3 emissions compared to 2021 levels. These achievements underscore Ferrari’s commitment to environmental responsibility.
Personalization and Product Mix Impact
Personalizations accounted for approximately 20% of total revenues from cars and spare parts, playing a crucial role in Ferrari’s revenue growth. This focus on customization enhances the brand’s exclusivity and customer satisfaction.
Impact of U.S. Import Tariffs and FX Headwinds
Ferrari faced challenges from incremental U.S. import tariffs and foreign exchange rate headwinds, which impacted profitability. These tariffs have caused margin dilution, presenting a hurdle for the company’s financial performance.
Lower Deliveries and Model Phaseouts
The phaseout of models like the Daytona SP3 and SF90 Spider led to lower deliveries, impacting overall shipment numbers. This strategic decision reflects Ferrari’s focus on evolving its product lineup to meet market demands.
Forward-Looking Guidance
CEO Benedetto Vigna outlined ambitious plans for the end of the decade, targeting EUR 9 billion in revenues, a 40% EBITDA margin, and a 30% EBIT margin. Ferrari aims to maintain a diverse powertrain mix by 2030, with 40% internal combustion engines, 40% hybrid, and 20% electric vehicles. The company plans to continue innovating and expanding its model lineup, with a focus on maintaining exclusivity and enhancing client experiences.
In conclusion, Ferrari NV’s earnings call highlighted a positive outlook, driven by strong revenue growth, strategic product launches, and sustainability achievements. Despite facing some challenges, the company’s forward-looking guidance and ambitious targets underscore its commitment to innovation and market leadership.