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    RACE
    Earnings call· Sep 2025(Q3 FY25)

    Ferrari N.V. RACE

    Nov 4, 2025 Source

    Executive summary

    Ferrari Q3 FY25 — Strong Profitability and Upward Guidance Revision Amidst Strategic Powertrain Recalibration

    Ferrari delivered strong Q3 FY25 results, driven by product mix and personalization, leading to an upward revision of its 2025 guidance. The company recalibrated its 2030 powertrain strategy towards more ICE and hybrid models, adapting to market dynamics and client preferences. Despite tariff and FX headwinds, Ferrari maintains a robust order book extending into 2027 and continues to focus on innovation and exclusivity.

    Highlights

    5

    • Total revenues reached approximately EUR 1.8 billion, a 7.4% growth year-over-year with flat deliveries.

    • Strong profitability with EBIT of over EUR 500 million and an EBITDA margin of 37.9%.

    • Industrial free cash flow generation was strong at EUR 365 million for the quarter.

    • The 2025 guidance was revised upward, exceeding the original 2026 profitability target one year in advance.

    • The order book extends well into 2027, with the Amalfi model attracting 40% new clients to the brand.

    Concerns

    4

    • The impact of incremental U.S. import tariffs became visible in Q3, resulting in margin dilution.

    • Greater foreign exchange rate headwinds, mainly related to U.S. dollar dynamics, affected revenue growth.

    • Lower deliveries year-over-year are projected for Q4 due to a significant model changeover.

    • The SF90 family and Roma were phased out, and the 296 family is approaching the end of its lifecycle, contributing to model transition.

    Guidance & targets

    11
    CategoryTargetConfidence
    2030 Revenues
    EUR 9 billion
    high materiality
    High
    2030 EBITDA Margin
    40%
    high materiality
    High
    2030 EBIT Margin
    30%
    high materiality
    High
    2030 Powertrain Mix (ICE)
    40%
    high materiality
    High
    2030 Powertrain Mix (Hybrid)
    40%
    high materiality
    High
    2030 Powertrain Mix (Electric)
    20%
    high materiality
    High
    2025 Guidance
    Revised upward
    high materiality
    High
    Q4 FY25 Deliveries
    Lower year-over-year
    medium materiality
    Medium
    Q4 FY25 Product Mix
    Positive, sequentially tighter
    medium materiality
    Medium
    Q4 FY25 SG&A and R&D
    Higher SG&A, seasonal step-up in racing R&D
    medium materiality
    Medium
    F80 Production Ramp-up
    Gradual, couple of quarters to ramp up
    medium materiality
    High

    Operational metrics

    19
    Total revenues
    EUR 1.8 billion7.4% growth year-over-year
    Q3 FY25

    Reached approximately EUR 1.8 billion.

    Net revenue growth
    9.3%vs prior year
    Q3 FY25

    Translates to 7.4% growth including FX headwind.

    EBIT
    over EUR 500 million
    Q3 FY25

    Strong profitability.

    EBITDA margin
    37.9%
    Q3 FY25

    Strong percentage margin despite dilution from increased import duties.

    EBIT margin
    28.4%
    Q3 FY25

    Strong percentage margin despite dilution from increased import duties.

    Net industrial debt
    EUR 116 million
    end of September

    Reflects share repurchase program executed in the quarter.

    Share repurchase program completion
    approaching completion1 year earlier than planned
    FY25

    Reflects strong confidence in the future.

    Personalization as % of revenues
    approximately 20%
    Q3 FY25

    Particularly relevant for SF90 XX family and Purosangue, supported by carbon and special paint adoption.

    Model lineup in ramp-up phase
    15%
    January '25

    Reflects development activities in past years.

    Model lineup in ramp-up phase
    35%
    end of '25

    Reflects development activities in past years.

    Amalfi new client acquisition
    40%
    current

    Percentage of people wanting to buy Amalfi who are new to the brand.

    Hybrid warranty program penetration
    more than 20%
    current

    Picking up, but some dealers need retraining to explain benefits properly.

    U.S. import tariffs
    15%down from 25%
    current

    Impacted Q3 results, commercial policy updated.

    U.S. commercial policy price increase
    up to 5%previously up to 10%
    current

    Updated in response to 15% tariffs.

    Scope 1 and Scope 2 emissions reduction
    approximately 30%vs 2021
    2024

    Achieved reduction.

    Scope 3 emissions reduction per car
    approximately 10%vs 2021
    2024

    Achieved reduction.

    Target Scope 1 and Scope 2 emissions reduction
    10xvs 2021
    2030

    Clear target.

    Target Scope 3 emissions reduction
    25%absolute vs 2024
    2030

    Clear target.

    F1 budget increase
    —
    next year

    Headline number USD 215 million from current USD 135 million, considered an incremental cost.

    Industry KPIs

    3
    MetricValueDetails
    Order book backlogwell into 2027
    Vehicle deliveries wholesalesflat
    Ev unit volumes mix segment economics20%%

    Product announcements

    7
    ProductTypeDetails
    Ferrari Amalfilaunch
    849 Testarossa familylaunch
    Ferrari Elettricamilestone
    Ferrari Elettrica interior design conceptroadmap
    Ferrari Elettrica complete carroadmap
    296 special seriesroadmap
    F80roadmap

    Risks & headwinds

    5
    Macroeconomic uncertainty and volatilityongoing

    uncertain and extremely volatile

    Mitigation: Visibility and solidity of business model allows commitment to ambitious plan; focus and discipline in execution.

    Incremental U.S. import tariffsQ3 FY25

    margin dilution

    Mitigation: Updated commercial policy to a 5% price increase (previously 10%) in response to tariffs now at 15% (previously 25%).

    Foreign exchange rate headwindsQ3 FY25

    greater headwind

    Mitigation: Decisions on pricing changes for order backlog are made on a country-by-country basis depending on the size of the move.

    Model changeover impact on deliveriesQ4 FY25

    lower deliveries year-over-year

    Mitigation: Managed through planned phase-outs and gradual ramp-ups of new models; consistent with plans for smooth expansion of profitability.

    Increased SG&A and R&D expensesQ4 FY25

    higher SG&A and seasonal step-up in racing R&D

    Mitigation: Dictated by the start of production of new models and racing development, managed within overall profitability plans.

    What to watch in Q4 FY25

    5

    Ferrari Elettrica interior design concept reveal

    Q1 '26
    CurrentTechnology unveiled
    TargetInterior design concept reveal

    Why it matters

    Provides further insight into the design and user experience of Ferrari's first EV, crucial for market reception and future demand.

    Moreover, the day before the Capital Markets Day, we unveiled the technology of our Ferrari Elettrica. This represents the first step of the wheel, which will be followed by the look and feel of the interior design concept in Q1 '26 and the complete car in Q2 2026.

    Q&A highlights

    6

    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

    2 min read6 chapters

    Detailed Narrative

    01

    Capital Markets Day & 2030 Ambitions

    Ferrari shared ambitious financial targets for 2030 at its Capital Markets Day, aiming for EUR 9 billion in revenues, a 40% EBITDA margin, and a 30% EBIT margin. Management emphasized the company's unique blend of heritage, technology, and racing, and its dual identity of inclusivity and exclusivity. These targets are considered a 'floor' for ambitions, with a focus on safeguarding brand exclusivity and delivering consistent growth over the long term⏳.

    02

    Powertrain Strategy Recalibration

    The 2030 powertrain mix was recalibrated to 40% ICE, 40% hybrid, and 20% electric, a significant shift from the previous 20% ICE, 40% hybrid, 40% electric plan. This adjustment was driven by slower-than-anticipated market adoption of electric technology and sustained demand for thermal and hybrid models. The company stressed client centricity and flexibility, leveraging its e-building facility to manufacture all three powertrains.

    03

    Product Launches and Order Book Strength

    Ferrari concluded its 6 launches for 2025 with the Ferrari Amalfi and 849 Testarossa family. The order book extends well into 2027, with almost all range models in production substantially sold out. The Amalfi model is performing better than previous models, successfully attracting 40% new clients to the brand, aligning with the objective to widen the client base.

    04

    Q3 FY25 Financial Performance

    The third quarter of 2025 saw continued strong growth, with total revenues reaching approximately EUR 1.8 billion, representing a 7.4% year-over-year increase despite flat deliveries. The company achieved strong profitability with EBIT exceeding EUR 500 million and generated EUR 365 million in industrial free cash flow. This solid performance enabled an upward revision of the 2025 guidance, surpassing the original 2026 profitability target a year ahead of schedule.

    05

    Model Changeover and Future Outlook

    Ferrari is undergoing a significant model changeover, with 35% of its lineup expected to be in the ramp-up phase of production by the end of 2025, up from 15% in January 2025. The SF90 family and Roma have been phased out, and the 296 family is nearing its lifecycle end, to be replaced by new models like the 849 Testarossa family, Amalfi, and 296 special series. The introduction of the F80 will be gradual, impacting Q4 2025 and 2026 deliveries.

    06

    Innovation and Pricing Power

    Management reiterated that Ferrari's pricing power is sustained by continuous innovation, not merely price increases. The company invests heavily in R&D to offer unique performance, engineering, design, and user interface, ensuring client delight. Facilities like the e-building and new paint shop underscore Ferrari's commitment to unique manufacturing processes across all powertrain types, guaranteeing long-term sustainability through product distinctiveness.

    AI-generated summary of the company’s earnings call. Not investment advice.