Ferrari N.V. Earnings - Q4 2025 Analysis & Highlights
Ferrari NV's Q4 2025 earnings call highlighted a remarkable year with record financial results, strong product diversification, and strategic growth initiatives, alongside discussions on 2026 financial targets, model changeovers, and macroeconomic factors like FX headwinds and tariffs.
Key Financial Results
Revenues exceeded €7.1 billion in 2025.
EBIT grew by double-digits, surpassing €2.1 billion.
Industrial cash flow generation exceeded €1.5 billion.
EBITDA margin was 38.8% and EBIT margin was 29.5% in 2025.
Shipments in 2025 were deliberately kept flat year-over-year.
Net revenues showed an 8% growth at constant currency and 7% growth including currency headwinds.
Personalizations accounted for approximately 20% of total revenues from cars and spare parts.
Volume contribution to EBIT was substantially flat, with a slightly positive change due to spare parts.
Mix and price positively impacted EBIT due to product and country mix, increased personalizations, and higher sales of the 499P Modificata.
Industrial costs and D&A were lower, partially offset by higher racing and sports car innovation expenses.
SG&A increased due to higher racing expenses, brand investment, and organizational and digital infrastructure development.
Other revenues were positive, mainly driven by sports-related activities and financial services.
Business Segment Results
Sports Cars saw an improved overall mix despite the phase-out of the Daytona SP3.
Racing revenues grew due to new partnerships and leveraging sponsor contributions.
Lifestyle experienced growth as the company continued to invest in its development.
In Q4 2025, a lower cost base and better product mix led to exceeding guidance.
The 12Cilindri family ramped up and reached global distribution in 2025.
The SF90 XX family reached its peak in 2025.
The Daytona SP3 concluded its limited series run in Q3 2025.
The first units of the F80 were delivered in Q4 2025.
The 499P Hypercar secured the 2025 FIA World Endurance Championship, winning both World Manufacturers and Drivers titles.
Ferrari museums in Maranello and Modena welcomed almost 900,000 visitors in 2025.
Capital Allocation
Industrial free cash flow generation allowed for an increase in shareholder remuneration by roughly 30% to over €1.3 billion through dividends and share repurchases.
The €2 billion share buyback program concluded in 2025.
Capital expenditure was focused on product and infrastructural development, including the new paint shop and the new e-Vortex track.
Industry Trends and Dynamics
The momentum for the Ferrari brand remains strong with a solid order book extending towards the end of 2027.
Residual values are stable and solid, as evidenced by recent auctions.
There is a growing desire for experiences, confirmed by new attendance records at Ferrari museums.
Competitive Landscape
Ferrari's determination to go beyond expectations and imagine the future is demonstrated by the Ferrari Luce, a visionary new full-electric sports car.
The company's strategy includes horizontal product diversification and technology neutrality.
Ferrari aims to lead by illuminating the path ahead, embodying this mindset with the Luce.
Macroeconomic Environment
The company navigated the complexities of today's world in 2025.
The US tariffs evolution was managed, limiting its dilutive impact.
Currency headwinds, mainly related to the US dollar and Japanese yen, impacted net revenues.
The US dollar exchange rate is assumed to be around $1.20 against the euro for 2026, resulting in a €200 million headwind compared to 2025, including hedges.
The company acknowledges persistent uncertainty in the global environment.
There is no change in terms of regulation for Ferrari regarding CO2 targets and the EU Commission's proposal.
Growth Opportunities and Strategies
The Ferrari Luce marks a new chapter in the company's history and allows for confident future outlook.
In 2025, six new sports cars were launched, including the Ferrari Luce, the 8-cylinder Ferrari Amalfi, the hybrid high-performing 849 Testarossa, and the hybrid 296 Speciale and Speciale Aperta.
Client-centricity is a core business model, focusing on craftsmanship, tailoring, and unique experiences.
The reintroduction of a steering wheel with mechanical buttons enhances driver experience.
Humanismo technology is key for all sports cars to deliver an enhanced client experience.
In Racing, the company confirmed its commitment to the World Endurance Championship with the 499P Hypercar.
In Formula 1, the team faces new regulations with unity and confidence, focusing on realism, discipline, and continuous improvement.
Hypersail is preparing a revolutionary boat for a new sporting arena, expected to touch water before year-end 2026.
In Lifestyle, two new flagship stores are planned to open in London (first half 2026) and New York (second half 2026).
The company aims to continue enriching its product offering with four exciting model launches in 2026, beyond the Ferrari Luce.
The construction of a new paint shop will continue as planned, and all sports cars will be tested on the e-Vortex.
Financial Guidance and Outlook
2026 is expected to be another year of consistent growth.
The planned model changeover in Sports Cars will lead to a further positive product mix, supported by the F80 and new models ramp-up.
A stronger product mix variance is anticipated in the second half of 2026 compared to 2025.
Personalizations are expected to remain around 20% of cars and spare parts revenues in 2026.
The evolution of sponsorships and lifestyle activities will further support top-line growth.
Increased investments in brand development, lifestyle retail network, racing, and digital transformation will drive higher SG&A.
Depreciation and amortization will be higher, in line with the start of production of new models.
The effective tax rate is expected to be around 23% in 2026.
Industrial free cash flow generation will be sustained by profitability, partially offset by CapEx slightly higher than in 2025.
Mix and price are expected to more than offset costs in 2026.
R&D expenditure is expected to be pretty stable, with potential volatility related to Formula 1 innovation expenses due to new technical regulations.
The order book extends towards the end of 2027.
The company's business plan is stable and linear, with 2026 being a year of growth.
