Ferrari NV Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
Ferrari NV's Q3 2025 earnings call highlighted strong financial performance, strategic recalibration of powertrain offerings, and continued focus on innovation and client experience. The company revised upward its 2025 guidance and emphasized its commitment to long-term growth and decarbonization.
Key Financial Results
Total revenues reached approximately €1.8 billion, a 7.4% growth year-over-year with flat deliveries.
Strong profitability with EBIT of over €500 million.
Industrial free cash flow at €365 million.
Revised upward the 2025 guidance during the Capital Markets Day in October.
Revised guidance exceeds the profitability target originally set for 2026 in the previous business plan one year in advance.
Decision to complete the current share repurchase program within this year, one year earlier than planned.
Business Segment Results
Increase in cars and spare parts was driven by the richer product mix, as well as higher personalizations despite the lower deliveries of the Daytona SP3.
Personalizations accounted for approximately 20% of total revenue from cars and spare parts and were particularly relevant for the SP90 XX family and the Purosangue, also supported by the adoption of carbon and special paint.
Sponsorship, commercial, and brand also increased, thanks to higher sponsorships and the improved performance of the lifestyle activities, as well as higher commercial revenues linked to the better prior year Formula 1 ranking.
Capital Allocation
Share repurchase program execution is approaching its completion by year end, one year in advance compared to the plan as announced in June 2022.
Industry Trends and Dynamics
Overall market adoption of electric technology has been more gradual than anticipated in 2022.
Demand for thermal and hybrid models have been more sustained.
Macroeconomic Environment
The macroeconomic environment remains uncertain and extremely volatile.
The visibility and solidity of the business model allowed commitment to an ambitious plan of six years of growth.
Growth Opportunities and Strategies
Continue to grow the Ferrari family, which today counts 90,000 active clients and to foster their sense of belonging in community through an ecosystem of unique experiences from truck to road to brand.
Continue to offer clients an average of four new models per year between 2026 and 2030 across the three different powertrains, ICE, hybrid, and electric, to address different clients and different clients' needs.
Deliberately recalibrated powertrain offer to be 40% ICE, 40% hybrid, and 20% electric.
Continue to grow business to new heights in an organically consistent way.
Look at the 2030 target as a floor of ambitions, always acting in the long-term interest of the brand, safeguarding exclusivity above all.
Financial Guidance and Outlook
Confirmed 2025 guidance, which was revised upward during the Capital Markets Day on October 9.
For Q4, project lower deliveries year-over-year in connection with the changeover of models, a positive product mix although sequentially lighter, higher G&A, seasonal step up in racing R&D expenses, as well as high SG&A dictated by the cars production of new models.
The introduction of the F80 will be gradual and will take a couple of quarters to ramp up the production, with the lifecycle expected to be around three years.
The guidance of the F80 and the model changeover will imply a more backend loaded 2026 and will shape the product and company mix throughout the year.
