Over the course of barely two hours on Sunday, Ferrari’s calamitous Formula One season went from bad to worse to absolute rock bottom https://t.co/VFj9h7fhWv ...

Core Viewpoint - Ferrari's high valuation may seem excessive at first, but its unique business model and financial performance justify the premium, positioning it more like a luxury brand than a traditional automaker [1][2][12]. Financial Metrics - Ferrari's P/E ratio stands at 41, with an EV/EBITDA multiple near 29 and a price-to-sales ratio above 11, which are significantly higher than traditional automakers [2][3]. - The company boasts an adjusted EBITDA margin of 38.3%, an operating margin of 28.3%, and a gross margin close to 50% for 2024, aligning it more with luxury brands like LVMH and Hermès [3][4]. Revenue Streams - Approximately 15% of Ferrari's revenue is derived from sponsorships, licensing, financial services, and after-sales, contributing to predictable cash flow and stability [6][7]. - The return on invested capital (ROIC) is around 24%, which is double that of LVMH, indicating strong financial health [8]. Business Model - Ferrari operates on a scarcity-driven model, producing fewer cars than demand, which maintains multiyear waiting lists and rising resale values, thus preserving pricing power [9]. - The company focuses on reinvesting in innovation and returning capital to shareholders without pursuing scale, allowing it to maintain its luxury status [9][12]. Market Position - Despite being valued at 42 times earnings, Ferrari's unique characteristics and brand durability suggest that it is not a conventional company, and its premium may be justified [10][12]. - The brand's emotional appeal insulates it from economic downturns, keeping demand stable even during weaker macroeconomic conditions [6][12]. Future Outlook - If Ferrari successfully blends scarcity with innovation, its elevated valuation could remain sustainable over the long term [13].

Core Insights - Ferrari N.V.'s Purosangue is a significant growth catalyst for the company, expected to continue its strong performance into 2025 [1] - The Purosangue's demand has positively impacted Ferrari's product mix and margins, showcasing the brand's ability to expand without losing exclusivity [1][3] - The model's successful integration of performance and practicality has resonated well with global buyers, reinforcing Ferrari's brand prestige [2] Company Performance - In Q3, the Purosangue, along with other models like the 296 GTS and the 12Cilindri family, contributed to a total of 3,401 unit deliveries for Ferrari [3][9] - The Purosangue's production is tightly controlled to maintain rarity, which supports pricing strength and brand exclusivity [2][9] - A robust order book for the Purosangue indicates strong future demand, positioning it as a key pillar in Ferrari's modern era [3] Industry Context - The luxury SUV market is becoming increasingly important for automakers, with companies like Porsche leveraging their SUV portfolios for sales growth [4] - In contrast, Aston Martin has faced challenges with its DBX model, which has not met initial sales expectations, highlighting the competitive landscape in the ultra-luxury SUV segment [5]

Core Insights - Ferrari's newest model, the Amalfi, is attracting a younger demographic, with the first two sales in China going to clients under 40 years old, and approximately 40% of potential buyers being new to the brand [1][3] - The debut of the Amalfi is performing better than the previous model, the Purosangue, indicating strong demand and positive market reception [2] - The influx of younger buyers is expected to drive Ferrari's next phase of high-margin growth, enhancing the brand's exclusivity and order book visibility extending through 2027 [3][4] Demand and Customer Profile - The Amalfi's early success with under-40 clients signifies a shift in Ferrari's customer profile, particularly in the Chinese market [3] - CEO Benedetto Vigna emphasized that attracting new customers was a key objective for the Amalfi, which appears to be successfully achieved [3] Business Strategy - Ferrari maintains its focus on innovation rather than volume, asserting that pricing power is driven by innovation rather than production scale [5] - The company's approach to innovation, from design to personalization, helps sustain high margins even as it broadens its customer base [5] Investor Implications - The introduction of the Amalfi and the engagement of younger customers are seen as pivotal for Ferrari's growth, suggesting that the luxury brand's competitive edge is not only maintained but is expanding [6]

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Exhibit 99.1 Ferrari N.V. Interim Report At and for the three and nine months ended September 30, 2025 CONTENTS | | Page | | --- | --- | | BOARD OF DIRECTORS | 1 | | INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 1 | | CERTAIN DEFINED TERMS | 1 | | INTRODUCTION | 2 | | FORWARD-LOOKING STATEMENTS | 3 | | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | | | Highlights | 5 | | Results of Operations | 8 | | Liquidity and Capital Resources | 16 | | Non-GAAP Financial Measu ...

Core Insights - Ferrari NV reported stronger-than-expected third-quarter results, which positively impacted its share price following a challenging month for the company [1] Financial Performance - The company exceeded Wall Street's earnings expectations, indicating robust financial health and operational performance [1]

Core Insights - Ferrari has released its Q3 2025 earnings report following a negative sentiment triggered by the Capital Markets Day, resulting in a 25% decline in stock price [1] Financial Performance - The earnings report indicates a significant downturn in investor sentiment, with the stock price dropping substantially [1] Investment Perspective - The focus on sustained profitability is emphasized, highlighting the importance of strong margins, stable and expanding free cash flow, and high returns on invested capital as reliable drivers of returns [1]

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]