Ferrari N.V. Earnings - Q4 2025 Analysis & Highlights
Ferrari NV reported strong 2025 full-year results with record revenues and profitability, driven by successful product launches including the new Ferrari Luce electric sports car, disciplined capital allocation, and strategic positioning for continued growth through 2030 despite near-term macroeconomic headwinds.
Key Financial Results
Revenues exceeded €7.1 billion, representing 8% growth at constant currency and 7% growth including currency headwinds primarily from the US dollar and Japanese yen.
EBIT surpassed €2.1 billion with double-digit growth, with EBITDA margin of 38.8% and EBIT margin of 29.5%.
Industrial free cash flow surpassed €1.5 billion, an increase of approximately 50% versus the prior year, supported by increasing profitability and positive working capital changes from F80 advances.
Shareholder remuneration increased by approximately 30% to over €1.3 billion between dividends and share repurchases.
€2 billion share buyback program concluded in 2025.
Personalizations accounted for approximately 20% of total revenues from cars and spare parts, particularly relevant for the SF90 XX family and Purosangue driven by carbon and special paint adoption.
Business Segment Results
Sports Cars segment delivered consistent performance with improved overall mix despite gradual phase-out of the Daytona SP3, with six new sports cars launched in 2025 including the Ferrari Luce, 8-cylinder Amalfi, hybrid 849 Testarossa Coupe and Spiders, and hybrid 296 Speciale and Speciale Aperta.
Racing segment achieved the 2025 FIA World Endurance Championship with the 499P Hypercar, securing both World Manufacturers and Drivers titles 53 years after the last world title and only three years since return to top class endurance racing.
Lifestyle segment demonstrated solid progress with successful client activations and new attendance records at museums in Maranello and Modena, welcoming almost 900,000 visitors in 2025.
Racing revenues grew thanks to new partnerships and leveraging extensive work on sponsor composition and contribution.
Lifestyle growth space was appropriate as the company continued investing in its development.
Capital Allocation
Industrial free cash flow generation of €1.5 billion was supported by increasing profitability and positive working capital changes, with partial offset from capital expenditure focused on product and infrastructural development.
Capital expenditure focused on product and infrastructural development, primarily represented by ongoing construction of the new paint shop and completion of the new e-Vortex track.
Share repurchases and dividends totaled over €1.3 billion, representing a 30% increase in shareholder remuneration.
2026 CapEx expected to be slightly higher than 2025, with industrial free cash flow generation sustained by profitability and partially offset by higher CapEx.
Yearly competitive award of up to €14,900 announced for employees in Italy to reward achievements and reflect strong company performance.
Industry Trends and Dynamics
Strong demand dynamics and visibility with solid order book extending toward the end of 2027 and net order intake supporting further visibility notwithstanding persistent uncertainty in the global environment.
Residual values stable and solid as evidenced by recent auctions achieving strong valuations, serving as structural foundation of value and brand discipline.
Amalfi attracting new clients to the brand from specific competitor brands appreciating the performance and elegance of Ferrari vehicles, with geographical differences in adoption as the car is shown with time delay in different countries.
Models driving order book include the 296 Speciale, Testarossa, and Amalfi, which were unveiled in the prior year.
Competitive Landscape
Ferrari's brand strength remains strong with dealers showing strengthened confidence in the second half of the year due to innovation coming with different products.
Exclusivity and brand discipline maintained through controlled shipments and residual value management, particularly in the UK market where shipments were reduced to stabilize residual values.
Client-centricity approach centered on craftsmanship, quality, tailoring, and unique experiences, with reintroduction of mechanical steering wheel buttons for enhanced driver experience reflecting humanismo technology philosophy.
Macroeconomic Environment
Foreign exchange headwind of approximately €200 million anticipated for 2026 based on US dollar assumption of $1.20 against the euro and current Japanese yen spot rates, with hedges built over the last 12 months on a rolling basis.
US tariffs evolution managed with overall mix continuing to improve despite gradual phase-out of Daytona SP3, limiting dilutive impact of tariff evolution.
Q4 tariffs slightly more benign compared to Q3 because most were based on the 15% rate applicable after August 1st.
Persistent uncertainty in global environment acknowledged while maintaining solid order book visibility.
No changes to regulatory plans despite EU Commission discussions on CO2 targets and potential relaxation of ICE ban, with company sticking to previously announced plans.
Growth Opportunities and Strategies
Ferrari Luce full-electric sports car launch marks new chapter in company history with three-phase unveil process: interior concepts revealed in San Francisco in February 2026, world premiere scheduled for Rome on May 25, 2026, with innovation meeting craftsmanship and cutting-edge design.
Complete introduction of Ferrari Luce is key focus for 2026 Sports Cars segment, with world premiere in Rome on May 25 coinciding with the 1947 first victory of Ferrari 125 S.
Four additional exciting model launches planned for 2026 beyond Ferrari Luce completion.
New paint shop construction continuing as planned with all sports cars tested on the e-Vortex.
Formula 1 commitment confirmed with 499P Hypercar in World Endurance Championship and new regulation challenges faced with unity and confidence, emphasizing realistic, disciplined, and continuous improvement mindset.
Hypersail revolutionary boat development for unprecedented new sporting arena, with boat expected to touch water before year-end.
Two new flagship lifestyle stores opening in 2026: London in first part of year and New York in second part, conceived as immersive backdrops for client activation and designed to enrich Ferrari offering of products and experiences.
Product diversification strategy with horizontal product diversification and technology neutrality approach demonstrated through six new sports cars launched in 2025.
Increased capacity for personalization through e-building providing flexibility to accommodate swing in personalization demand, with capacity also increased at some suppliers for appealing personalization options.
India market opportunity with lower tariffs facilitating development, though market development will take time and requires focused approach.
Financial Guidance and Outlook
2026 expected to be another year of consistent growth based on planned model changeover execution leading to further positive product mix supported by F80 and new models ramp-up.
Stronger product mix variance anticipated in second half of 2026 compared to first half, with F80 and new models ramp-up offsetting lower deliveries of SF90 XX family and 499P Modificata.
Personalizations expected to stay around 20% of cars and spare parts revenues in 2026.
Evolution of sponsorships and lifestyle activities expected to further support top-line growth.
Increased investments in brand development, lifestyle retail network, racing, and digital transformation will drive higher SG&A expenses.
Depreciation and amortization expected to be higher in line with start of production of new models.
Effective tax rate expected around 23% as company continues benefiting from current Patent Box regime only.
Industrial free cash flow generation sustained by profitability with partial offset from CapEx slightly higher than 2025.
2026 represents further milestone in journey toward 2030, another year of growth marking continued progress in line with Capital Market Day ambitions.
Mix and price expected to more than offset costs in 2026.
R&D expenses expected to be pretty stable with possible volatility related to Formula 1 expenditure due to new technical regulations and financial regulation allowances for teams.
2026 guidance does not assume use of contractual pricing flexibility for foreign exchange management.
Long-term 2030 targets remain unchanged with company maintaining discipline and confidence in execution, sticking to plans shared at October 9 Capital Market Day.
Business plan described as stable and linear through 2030 with 2026 characterized as year of growth rather than toughest year in plan.
Product Portfolio and Deliveries
Shipments deliberately kept flat year-over-year in 2025 with product portfolio evolution entering 2026.
12Cilindri family ramped up and reached global distribution in 2025.
SF90 XX family reached its peak in 2025.
Daytona SP3 concluded limited series run in Q3 2025 with first few units of F80 delivered in Q4.
Seven new models entering production and distribution phases in 2026, a record number, shaping pace of deliveries and geographic allocation throughout the year.
296 Speciale and 849 Testarossa families will take place of 296 and SF90 families, while Amalfi will succeed Roma.
F80 started ramp-up phase with Ferrari Luce beginning deliveries in Q4 2026.
499P Modificata sales expected to be lower in 2026 compared to 2025.
Supercars and Icona represented approximately 1% of overall shipments.
