Ferrari(US:RACE)2025-11-04 16:16Financial Performance - Net revenues for Q3 2025 reached €1,766 million, a 7.4% increase from €1,644 million in Q3 2024[20] - Operating profit (EBIT) for Q3 2025 was €503 million, up 7.7% from €467 million in Q3 2024[20] - Net profit for Q3 2025 was €382 million, compared to €375 million in Q3 2024, reflecting a 1.9% increase[20] - Net revenues for the nine months ended September 30, 2025, were €5,344 million, an increase of €403 million or 8.2% compared to €4,941 million for the same period in 2024[62] - Net profit for the nine months ended September 30, 2025, was €1,219 million, adjusted for various non-cash expenses and tax payments[96] - Basic earnings per common share for the nine months ended September 30, 2025, was €6.83, compared to €6.32 for the same period in 2024[161] - Total comprehensive income for the nine months ended September 30, 2025, was €1,307,035 thousand, up from €1,131,148 thousand in 2024, reflecting a growth of 15.6%[164] Revenue Breakdown - Revenues from cars and spare parts were €1,479 million, up €79 million or 5.6%, attributed to a richer product mix and higher personalization contributions[38] - Sponsorship, commercial, and brand revenues increased by €37 million or 21.0% to €211 million, driven by improved Formula 1 rankings and lifestyle activities[42] - Revenues from cars and spare parts for the nine months ended September 30, 2025, reached €4,522,123 thousand, up 6.3% from €4,256,158 thousand in 2024[187] Costs and Expenses - Total cost of sales rose to €882 million, an increase of €55 million or 6.7%, with cost as a percentage of net revenues decreasing to 49.9% from 50.3%[44] - Selling, general and administrative costs increased by €25 million or 18.8% to €160 million, primarily due to racing expenses and brand investments[46] - Research and development costs were €222 million, an increase of €10 million or 4.6%, reflecting higher expenses mainly driven by racing activities[48] - Selling, general and administrative costs for the nine months ended September 30, 2025, totaled €469,371 thousand, reflecting a 16.8% increase from €401,786 thousand in 2024[192] - Research and development costs for the three months ended September 30, 2025, amounted to €222,172 thousand, a 4.0% increase from €212,490 thousand in 2024[194] Cash Flow and Liquidity - The Group's cash flows from operating activities for the nine months ended September 30, 2025, were €1,830 million, an increase of €399 million compared to €1,431 million in 2024[92][93] - Cash flows used in investing activities for the nine months ended September 30, 2025, were €693 million, a slight decrease from €711 million in 2024, primarily due to lower investments in intangible assets[94][95] - Cash flows used in financing activities increased significantly to €1,448 million in 2025 from €313 million in 2024, driven by higher debt repayments and increased share repurchases[98][99] - Free Cash Flow for the nine months ended September 30, 2025, was €1,137 million, an increase of €418 million compared to €719 million for the same period in 2024[145] - Total available liquidity at September 30, 2025, was €1,968 million, compared to €2,292 million at December 31, 2024[139] Shareholder Returns - Ferrari announced a multi-year share buyback program of approximately €2 billion, with an eighth tranche of up to €360 million starting on August 22, 2025[30] - The Group approved dividends of €440 million in 2024 and plans to increase dividends to €532 million in 2025, alongside share repurchases of €556 million[83] - Share repurchases amounted to €556,049 thousand during the nine months ended September 30, 2025, compared to €430,562 thousand in the same period of 2024, reflecting a 29.2% increase[171] Taxation - Income tax expense increased by €17 million or 18.5% to €108 million, driven by higher profit before taxes and an increased effective tax rate from 19.5% to 22.0%[54] - The effective tax rate for the nine months ended September 30, 2025, was 22.0%, up from 19.5% in the prior year[200] - The increase in effective tax rate is attributed to the transition from the previous Patent Box tax regime to the new regime effective from 2025[200] - The new Patent Box regime allows for a 110% super tax deduction for costs related to eligible intangible assets[200] Assets and Equity - Total assets as of September 30, 2025, were €9,482 million, slightly down from €9,497 million at the end of 2024[24] - Total equity increased to €3,780 million as of September 30, 2025, compared to €3,543 million at the end of 2024[24] - The company’s net (debt)/cash position was €(1,452) million at September 30, 2025, an improvement from €(1,610) million at December 31, 2024[131] Strategic Initiatives - The company plans to launch an average of four new car models per year from 2026 to 2030, including the new Ferrari elettrica[155] - The 2030 Strategic Plan targets net revenues of approximately €9.0 billion and an adjusted EBITDA margin of at least 40%[156] - The company aims to reduce Scope 1 and 2 GHG emissions by at least 90% by 2030 compared to 2021 levels[155]