Core Insights - Ferrari reported quarterly earnings of $2.5 per share, exceeding the Zacks Consensus Estimate of $2.35 per share, and showing an increase from $2.29 per share a year ago, resulting in an earnings surprise of +6.38% [1] - The company achieved revenues of $2.06 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.19% and up from $1.81 billion year-over-year [2] - Ferrari has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Financial Performance - The earnings surprise for the previous quarter was +5.06%, with actual earnings of $2.7 per share against an expectation of $2.57 per share [1] - The current consensus EPS estimate for the upcoming quarter is $2.60, with projected revenues of $2.11 billion, and for the current fiscal year, the estimate is $10.35 on $8.22 billion in revenues [7] Market Position - Ferrari shares have underperformed the market, losing about 7.7% since the beginning of the year, while the S&P 500 has gained 16.5% [3] - The Zacks Rank for Ferrari is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Automotive - Original Equipment industry, to which Ferrari belongs, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Total revenues reached approximately EUR 1.8 billion, a 7.4% growth year over year with flat deliveries [13] - EBIT was over EUR 500 million, indicating strong profitability [13] - Industrial free cash flow was EUR 365 million, reflecting solid business performance [13][20] - EBITDA margin stood at 37.9% and EBIT margin at 28.4%, despite challenges from increased import tariffs [19] Business Line Data and Key Metrics Changes - Shipments were driven by models such as the 296 GTS, Purosangue, and the 12-cylinder family, while deliveries of the Daytona SP3 were lower due to its phase-out [16][17] - Personalizations accounted for approximately 20% of total revenues from cars and spare parts, particularly relevant for the SF90 XS family and Purosangue [18] Market Data and Key Metrics Changes - The U.S. market showed normalization in consumer behavior following clarity on tariffs, with business proceeding as usual [66] - The company noted a significant changeover of models, with only 15% of the lineup in ramp-up phase at the beginning of 2025, increasing to 35% by year-end [13] Company Strategy and Development Direction - The company aims for EUR 9 billion in revenues by the end of the decade, with a 40% EBITDA margin and a 30% EBIT margin [4] - A flexible approach to powertrain offerings has been adopted, recalibrating to 40% ICE, 40% hybrid, and 20% electric by 2030 [6] - The company plans to introduce an average of four new models per year between 2026 and 2030, focusing on innovation and client-centricity [5][8] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains uncertain and volatile, but the company is committed to a six-year growth plan [9] - Management expressed confidence in maintaining pricing power through continuous innovation and product differentiation [39][81] Other Important Information - The company has achieved approximately 30% reduction in Scope One and Scope Two emissions and aims for a 10x reduction by 2030 [10] - The order book extends well into 2027, indicating strong demand for new models [12] Q&A Session Summary Question: Impact of mix on Q4 performance - Management noted that the mix impact in the second half of the year has been slightly better than anticipated, mainly due to strong personalization [29] Question: Pricing power and future expectations - Management expressed confidence that pricing power will continue, driven by innovation and product richness [39] Question: Hybrid share reduction - The reduction in hybrid offerings is linked to the changeover of models and not indicative of a broader trend [46] Question: Demand for new models - Demand for the Purosangue is strong, with over 40% of potential buyers being new to the brand [54] Question: F1 budget increase - The increase in the F1 budget will flow through as a cost increase, impacting the P&L [96] Question: FX impact on order backlog - The company can adjust pricing based on currency fluctuations, with a 90-day notice period for changes [98]

Financial Data and Key Metrics Changes - Total revenues reached approximately €1.8 billion, reflecting a 7.4% year-over-year growth with flat deliveries [13] - EBIT exceeded €500 million, indicating strong profitability [13] - Industrial free cash flow was reported at €365 million, showcasing solid business performance [13][20] - EBITDA margin stood at 37.9% and EBIT margin at 28.4%, despite challenges from increased import tariffs [19] Business Line Data and Key Metrics Changes - Shipments were driven by models such as the 296 GTS, Purosangue, and the 12-cylinder family, while deliveries of the Daytona SP3 were lower due to its phase-out [16][17] - Personalizations accounted for approximately 20% of total revenues from cars and spare parts, particularly benefiting the SF90 XS family and Purosangue [18] Market Data and Key Metrics Changes - The company noted a significant changeover of models, with only 15% of the lineup in ramp-up phase at the beginning of 2025, increasing to 35% by year-end [13] - The order book extends well into 2027, indicating strong demand for new models [12] Company Strategy and Development Direction - The company aims for €9 billion in revenues by the end of the decade, with a 40% EBITDA margin and a 30% EBIT margin [4] - A flexible powertrain strategy has been recalibrated to 40% ICE, 40% hybrid, and 20% electric, reflecting market dynamics and client preferences [6][7] - The company plans to introduce an average of four new models per year between 2026 and 2030, focusing on innovation and exclusivity [5][8] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains uncertain, but the company expresses confidence in its business model and growth plans [9] - The company has achieved a 30% reduction in Scope One and Scope Two emissions and aims for a tenfold reduction by 2030 [10] Other Important Information - The company has completed its share repurchase program ahead of schedule, reflecting strong confidence in future performance [14] - The introduction of the Ferrari Elettrica is seen as a significant opportunity for innovation and market engagement [10][11] Q&A Session Summary Question: Impact of mix on Q4 performance - Management noted that the mix impact in the second half of the year has been slightly better than anticipated, primarily due to strong personalization [25][29] Question: Pricing power and future expectations - Management expressed confidence in maintaining pricing power through continuous innovation and product enrichment [37][39] Question: Hybrid vehicle share and delivery figures - The reduction in hybrid offerings is linked to model changes, and initial deliveries of the F80 are expected to be limited in Q4 [45][47] Question: Consumer behavior in the U.S. market - The business in the U.S. is proceeding normally, with tariffs now stabilized at 15%, and no unusual order cancellations have been observed [64][66] Question: Margin stability amidst investments - Management emphasized the importance of continuous innovation to maintain margin stability, despite necessary investments in new facilities and technologies [88][92]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 reached approximately €1.8 billion, reflecting a 7.4% year-over-year growth with flat deliveries [13] - EBIT exceeded €500 million, indicating strong profitability [13] - Industrial free cash flow was reported at €365 million, showcasing solid business performance [13][20] - EBITDA margin stood at 37.9% and EBIT margin at 28.4%, despite challenges from U.S. import tariffs and currency fluctuations [19] Business Line Data and Key Metrics Changes - Shipments were driven by models such as the 296 GTS, Purosangue, and the 12-cylinder family, while deliveries of the Daytona SP3 were lower due to its phase-out [16][17] - Personalizations accounted for approximately 20% of total revenues from cars and spare parts, particularly benefiting the SF90 XS family and Purosangue [18] Market Data and Key Metrics Changes - The U.S. market showed resilience despite previous concerns over consumer behavior due to tariffs, with a normalization observed as tariffs were reduced from 25% to 15% [38] - The order book extends well into 2027, indicating strong demand for new models like the Testa Rossa family and Amalfi [13][34] Company Strategy and Development Direction - The company aims for €9 billion in revenues by the end of the decade, with a 40% EBITDA margin and a 30% EBIT margin [3] - A flexible powertrain strategy has been adopted, recalibrating the 2030 breakdown to 40% ICE, 40% hybrid, and 20% electric, responding to market dynamics and client preferences [5][6] - The company plans to introduce an average of four new models per year between 2026 and 2030, focusing on innovation and exclusivity [4][12] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains uncertain and volatile, but the company expresses confidence in its business model and growth plans [9] - A commitment to decarbonization has been reaffirmed, with targets to significantly reduce emissions by 2030 [10] Other Important Information - The company has achieved a 30% reduction in Scope One and Scope Two emissions and a 10% reduction per car in Scope Three emissions from 2021 to 2024 [10] - The new facility in Maranello is designed to manufacture all three powertrains, showcasing the company's commitment to flexibility and innovation [7] Q&A Session Summary Question: Impact of mix on Q4 performance - The mix impact in the second half of the year has been slightly better than anticipated, mainly due to strong personalization [24][25] Question: Personalization penetration rates - The long-term penetration of personalization is guided to be around 19%, with new facilities aimed at enhancing client engagement [26] Question: F80 rollout strategy - The F80 will roll out over three years, consistent with the company's approach to manage production and demand effectively [30] Question: Demand for new models - Demand for both the Coupe and Spider versions of the 849 Testa Rossa is strong, with significant interest in the Amalfi as well [32][34] Question: Hybrid warranty program - The hybrid warranty program is gaining traction, with penetration rates exceeding 20%, although some dealers require retraining to better explain the benefits [34] Question: U.S. market dynamics - The business in the U.S. is proceeding normally, with no unusual order cancellations observed despite concerns over residual values [38] Question: F1 budget impact - The increase in the F1 budget will flow through as a cost increase, impacting the P&L [50]

Financial Data and Key Metrics Changes - Total revenues reached approximately €1,800,000,000, reflecting a 7.4% year-over-year growth with flat deliveries [17] - EBIT exceeded €500,000,000, indicating strong profitability [17] - Industrial free cash flow was €365,000,000, showcasing solid business performance [17][27] - The company revised its guidance upward, exceeding the original profitability target for 2026 by one year [17][27] Business Line Data and Key Metrics Changes - The product mix and personalization were key drivers of revenue and profitability growth, with shipments in line with the previous year [20] - Personalizations accounted for approximately 20% of total revenues from cars and spare parts, particularly relevant for the U-ninety XS family and the Guro Sangue [23] - The company experienced a significant changeover of models, with the SF90 family and the ROMA phased out, and new models like the August Testarossa family and the Amalfi set to launch [22] Market Data and Key Metrics Changes - The U.S. market showed normalization after tariff adjustments, with tariffs reduced from 25% to 15% [66] - The company noted that the business in the U.S. proceeds as usual, with no significant changes in consumer behavior despite concerns about residual values [66] Company Strategy and Development Direction - Ferrari aims for €9,000,000,000 in revenues by the end of the decade, with a 40% EBITDA margin and a 30% EBIT margin [4] - The company is focusing on a diversified product strategy, planning to offer an average of four new models per year across different powertrains from 2026 to 2030 [5] - The company has recalibrated its powertrain offering to 40% ICE, 40% hybrid, and 20% electric, adapting to market dynamics and client preferences [6][7] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains uncertain and volatile, but the company is committed to a six-year growth plan with focus and discipline [12] - Management expressed confidence in maintaining pricing power through continuous innovation and product differentiation [43][44] - The company has achieved a 30% reduction in Scope one and Scope two emissions and aims for a 10x reduction by 2030 [12][13] Other Important Information - The company is investing in infrastructure, including a new facility capable of manufacturing three powertrains, to support its flexible approach to product development [9] - The order book extends well into 2027, indicating strong demand for new models [16] Q&A Session Summary Question: Impact of mix on Q4 performance - Management noted that the mix impact in the second half of the year has been slightly better than anticipated, mainly due to strong personalization [38] Question: Pricing power and future expectations - Management expressed confidence that pricing power will continue, driven by innovation and product enhancements [43][44] Question: Hybrid vehicle share and delivery figures - The reduction in hybrid vehicle offerings is linked to model changes, and initial deliveries of the F80 are expected to be limited in Q4 [48][49] Question: Demand for new models - Demand for the Amalfi is strong, with a significant portion of new clients coming to the brand [56] Question: Margin stability amidst investments - Management emphasized the importance of continuous innovation to maintain long-term margin stability, despite necessary investments [88][90]

Group 1 - Ferrari exceeded Wall Street's earnings and revenue expectations, indicating strong financial performance [2] - The company aims to generate investor enthusiasm following a less-than-ideal electric vehicle reveal [2]

Core Insights - Ferrari is shifting its focus towards the 2026 season, acknowledging a performance gap with McLaren while still aiming for a strong finish in the current season [1][3] - The team is prioritizing the development of a new car in response to significant regulatory changes set for 2026, including a 30 kg weight reduction and a 300% power increase from hybrid systems [3][4] - The experience of Lewis Hamilton and the growth of Charles Leclerc are seen as critical factors for Ferrari's potential resurgence [1][4] Group 1: Strategic Focus - Ferrari's performance this season has been lackluster, with the SF-25 car lagging behind McLaren in aerodynamic efficiency and power stability, leading to a strategic pivot towards 2026 [3] - Team principal Vasseur has indicated that the 2026 season will require a complete overhaul of the car, emphasizing the need to start from scratch due to new tire, fuel, engine, and chassis regulations [3][4] Group 2: Driver Contributions - Hamilton has provided valuable feedback on key issues such as steering stability and braking response, which has led to improvements in the team's development processes [4] - Leclerc's consistent performance has solidified his position as a key asset for Ferrari, and his recent personal milestones are viewed as indicators of his maturity and potential to lead the team [4][5] Group 3: Development Progress - The design phase for the 2026 car is currently underway, with the team planning to integrate the experiences of both drivers to create a more universally competitive vehicle [5] - Ferrari is leveraging the dual advantages of driver experience and personal growth to prepare for a strong comeback amid the upcoming technical changes [5]

Core Insights - Ferrari has reduced price increases on certain models in the U.S. to a maximum of 5% due to a deal that lowers the import tariff on European products [1] Group 1 - The price increase cap of 5% applies to specific models sold in the U.S. market [1] - The decision to trim price increases is linked to a new agreement regarding import tariffs [1]

Q3 2025 Financial Highlights - Revenues reached approximately €1.8 billion, with an adjusted EBIT of around €500 million, resulting in a 28.4% margin[6] - Industrial free cash flow generation was robust at €365 million[6] - Net revenues increased by 7.4% compared to Q3 2024[17] - Diluted earnings per share increased by 2.9% to €2.14[19] - EBITDA increased by 5.0% to €670 million[15] Shipments and Regional Performance - Total shipments were substantially flat, increasing by 0.5% from 3,383 units in Q3 2024 to 3,401 units in Q3 2025[11, 17] - EMEA region shipments increased by 23 units, representing 43% of total shipments[26] - Shipments to Mainland China, Hong Kong, and Taiwan decreased by 33 units[26] - Americas shipments decreased by 25 units, accounting for 31% of total shipments[26] 2025 Guidance Revision - The company revised its 2025 guidance upward, now expecting net revenues of ≥€7.1 billion, compared to the previous guidance of >€7.0 billion[39] - Adjusted EBITDA is now projected to be ≥€2.72 billion, maintaining a margin of ≥38.3%[39] - Adjusted EBIT is expected to be ≥€2.06 billion, with a margin of ≥29.0%[39] - Adjusted diluted EPS is projected to be ≥€8.80[39] - Industrial free cash flow is expected to be ≥€1.30 billion[39]

Core Insights - Ferrari delivered more vehicles than expected, indicating strong performance despite regional weaknesses in the Americas and China [1] Summary by Category Vehicle Deliveries - The company achieved higher vehicle shipments than anticipated, which suggests effective management and demand in other markets [1] Regional Performance - Weakness in vehicle sales was noted in the Americas and China, but this was offset by increased shipments in other regions, highlighting a diversified market strategy [1]