Ferrari (RACE) Q3 FY25 earnings call: guidance and Q&A

Why was H2 mix better than anticipated, and why is long-term personalization guided lower than current levels despite new tailor-made studios?

The mix impact in the second half was slightly better due to strong personalization. The long-term 19% personalization target accounts for bringing tailor-made services closer to clients in key markets, rather than indicating a moderation in demand.

“Yes, the mix impact in the second half of the year has been slightly better than anticipated. So I remember I answered you in the second quarter call that we would have expected the mix more neutral in the second half. Now this is a slightly improved at least based on the third quarter results. And this is mainly due to personalization that remains very, very strong. With respect to your second quarter -- second question, we said we have prepared the plan on the basis of a 19% longer-term penetration of personalization.”

asked by Michael Binetti · answered by Antonio Piccon

Is the F80's 3-year rollout longer than normal for a supercar, and is there a strategic reason for this extended cadence?

The F80's rollout over 3 years is in line with recent ICONA models, considering the overall number of cars involved and the necessary start-up phase to reach a stable production run rate.

“[indiscernible] line with what we've been doing on the ICONA as recently, considering the overall number of cars involved and the start-up phase that is entailed by in order to get to run rate of production.”

asked by Michael Binetti · answered by Antonio Piccon

Given past successes, is Ferrari's pricing power nearing its end, or is there still room for growth?

Pricing power is not ending; Ferrari is confident it will continue due to ongoing innovation in product features, vehicle dynamics, user interface, and architecture. The company increases prices because it adds innovative content that delights clients, not just for the same product.

“It's not at all an end. Actually, we feel confident that with all the innovation that we have to delight our clients, we do not see any weakening in our pricing power. We will continue to offer Flavio, car with a different positioning. All of them will benefit of the pricing power because this pricing power, just to be clear, is not coming because we will just increase the price for the same, let me say, product as it is. No, we will make richer and richer innovative, more and more innovative with the product so that by delighting the client, we are confident that we will keep our pricing power.”

asked by Flavio Cereda · answered by Benedetto Vigna

The hybrid share was lowest in years. Is this linked to product changeover or a deliberate strategy to reduce hybrid share?

The reduced hybrid share is solely a consequence of the current model lineup and the ongoing changeover. It is not a deliberate reduction or a trend related to propulsion type.

“So the first one, Thomas, is just depends on the offer that we have on the lineup we are offering to our clients. The number of hybrid cars that we are offering is reducing because there is a change in the model. So there is no if you want, there is no surprise over there. It's a consequence of the way we launched the car. No, that's it. There is -- don't extrapolate any trend over there, okay? And it's not related to the propulsion.”

asked by Thomas Besson · answered by Benedetto Vigna

How is demand for the Amalfi, especially for new clients? What is the current penetration rate and understanding of the hybrid warranty program?

The Amalfi is performing better than previous models, with 40% of buyers being new to the brand. Hybrid warranty penetration is over 20% and picking up, but some dealers require retraining to effectively explain its benefits to clients.

“I think Amalfi is proceeding better than the previous model. So this is very encouraging. The second point I can tell you is that I saw -- I was in China the 21st of October, and I saw the first 2 Amalfi sold over there to new client younger than 40 years old. I can also share with you that in order book, more than 50% of the new clients -- of the -- sorry, 40% of the people that want to buy the Amalfi are coming new to the brand. [...] The story of hybrid, that hybrid warranty, I think that -- I mean, it's picking up, continues to pick up. It's more than 20%.”

asked by Stephen Reitman · answered by Benedetto Vigna

Has U.S. consumer behavior normalized after tariffs, and are there any unusual order cancellations due to residual value concerns?

U.S. business is proceeding as usual. Tariffs are now 15% (down from 25%), and the commercial policy has been updated to reflect a 5% price increase. No unusual order cancellations have been observed.

“So one, in U.S., the business proceeds as usual, number one. Number two, the only difference we see in U.S. that if you compare today versus the previous call, at that time, the tariff were still at 25%. Now they are at 15%. Now it's carved out in the stone, it's 15%. So that's the only difference we see. And we have been -- you remember last time, we told you when it will become, how can I say, blessed by papers, then we will update the commercial policy, and that's what we did. That's what we did before we said the price increase up to 10% when the tariffs were 25%. And now we say price increase up to 5%.”

asked by Robert Krankowski · answered by Benedetto Vigna