Core Insights - Ferrari N.V. has experienced a 17% decline in stock price over the last three months, contrasting with rising shares of major automakers like General Motors and Ford [1][9] - Despite the stock price drop, Ferrari's fundamental growth drivers remain strong, including visibility into future demand, industry-leading profit margins, and a unique business model focused on scarcity rather than volume [3][4] Financial Performance - Ferrari's third-quarter results showcased strong demand for the Purosangue model, contributing to a total of 3,401 units delivered, while maintaining production constraints to ensure rarity [5][6] - The company achieved an impressive EBITDA margin of 37.9% in Q3, significantly higher than typical margins reported by mass-market competitors [7][9] Strategic Approach - Ferrari's strategy emphasizes steady price increases, deepening personalization options, and tightly managing production to maintain scarcity, which has not negatively impacted demand even with a recent 10% price increase for some models [10] - The company has a clean financial structure with little debt and robust free cash flow, allowing for continued investment and shareholder rewards, including a €2 billion buyback program initiated in July 2022 [11][13] Product Pipeline and Market Position - Ferrari maintains a deep order book extending into 2027, supported by plans to launch four new models annually between 2026 and 2030, ensuring product freshness while preserving exclusivity [13] - The company's premium valuation compared to GM and Ford is justified by its pricing power, deep order visibility, high margins, and strong growth expectations, with projected earnings growth of 15.3% and 8.7% for 2025 and 2026 respectively [14][16] Conclusion - Despite recent stock price concerns, Ferrari's fundamentals indicate strong pricing strength, margin leadership, and a disciplined product strategy, positioning it as a durable and premium franchise in the luxury automotive sector [16][17]

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]

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]

Core Insights - Ferrari's CEO, Benedetto Vigna, emphasized the company's commitment to sustainable growth and innovation in electric technology, particularly with the Ferrari Elettrica, during the Capital Markets Day [1] Financial Performance - For Q3 2025, Ferrari reported net revenues of €1,766 million, an increase of 7.4% year-over-year, with total shipments of 3,401 units, reflecting a 1% increase [2][7] - Operating profit (EBIT) for the quarter was €503 million, up 7.6% from the previous year, maintaining an EBIT margin of 28.4% [2][12] - Net profit for Q3 2025 reached €382 million, a 1.8% increase compared to Q3 2024, with diluted EPS at €2.14, up from €2.08 [2][15] Shipment and Product Mix - Total shipments for Q3 2025 were 3,401 units, showing a slight increase of 1% compared to the same period last year [3][4] - The product mix included six internal combustion engine (ICE) models and five hybrid engine models, with ICE models accounting for 57% of total shipments [5][6] Revenue Breakdown - Revenue from cars and spare parts was €1,479 million, up 5.6% year-over-year, driven by a richer product mix and increased personalizations [8][9] - Sponsorship, commercial, and brand revenues reached €211 million, a significant increase of 21% year-over-year, attributed to improved sponsorships and lifestyle activities [9] Cost and Cash Flow - EBITDA for Q3 2025 was €670 million, reflecting a 5% increase from the previous year, with an EBITDA margin of 37.9% [11][12] - Industrial free cash flow for the quarter was strong at €365 million, supported by increased EBITDA and effective working capital management [16] Debt and Liquidity - As of September 30, 2025, Ferrari's net industrial debt was €116 million, a significant reduction from €338 million as of June 30, 2025, with total available liquidity at €1,968 million [17] 2025 Guidance - The company revised its 2025 guidance upward during the Capital Markets Day, projecting net revenues of at least €7.1 billion and adjusted EBITDA margin of at least 38.3% [18][19]

Core Insights - Ferrari N.V.'s Purosangue has established itself as a significant contributor to the company's delivery performance, alongside the 296 GTS and Roma Spider, with total deliveries remaining steady at 3,494 units in Q2 2025 [1][4][11] - The Purosangue is Ferrari's first four-door SUV, launched in September 2022, combining high performance with the practicality of an SUV, and is described as the company's most comfortable and versatile vehicle [2][11] - Ferrari's strategy involves careful management of Purosangue production to maintain exclusivity while enhancing delivery volumes and pricing power, ensuring growth without compromising brand heritage [3][11] Delivery Performance - In Q2 2025, the Purosangue emerged as a key model driving deliveries, reinforcing Ferrari's robust order book and expectations for continued delivery strength in upcoming quarters [4][11] Competitive Landscape - Other luxury automakers, such as Porsche and Aston Martin, are also leveraging SUVs for growth, with Porsche's Cayenne and Macan serving as sales anchors, while Aston Martin's DBX has faced execution challenges despite its potential [5][6]

Q2 2025 Financial Highlights - Net revenues reached approximately €1.8 billion[6], a 4.4% increase compared to Q2 2024[17] - EBITDA stood at €709 million[6], with a margin of 39.1%[15] - Net profit amounted to €425 million[6] - Industrial Free Cash Flow (FCF) surged to €232 million[6], a 90.7% increase from Q2 2024[21] - Diluted earnings per share increased by 3.9% to €2.38[19] Shipments and Regional Performance - Total shipments were 3,494 units in Q2 2025, a slight increase of 0.3% compared to 3,484 units in Q2 2024[11, 16] - EMEA shipments decreased by 9 units, representing 47% of total shipments[23] - Mainland China, Hong Kong, and Taiwan saw a decrease of 4 units[23], accounting for 5% of total shipments[27] - Rest of APAC increased by 11 units, making up 17% of total shipments[23] - Americas increased by 12 units, holding steady at 28% of total shipments[23] 2025 Guidance - The company expresses stronger confidence in its 2025 guidance, projecting net revenues greater than €7.0 billion[38], representing a growth of ≥5%[38] - Adjusted EBITDA is expected to be at least €2.68 billion[38], with a margin of ≥38.3%[38], representing a growth of ≥5%[38] - Adjusted EBIT is projected to be at least €2.03 billion[38], with a margin of ≥29.0%[38], representing a growth of ≥7%[38] - Industrial FCF is expected to be at least €1.20 billion[38], representing a growth of ≥17%[38]

Core Insights - The first semester of 2025 highlighted the importance of agility and flexibility in management, with strong results reflecting the company's commitment to disciplined strategy execution and innovation [1] - The overwhelming demand for the 296 Speciale family and positive feedback on the newly launched Ferrari Amalfi indicate a successful product portfolio expansion [1] Financial Performance - For Q2 2025, net revenues reached €1,787 million, a 4% increase from €1,712 million in Q2 2024, while for the first half of 2025, revenues were €3,578 million, up 9% from €3,297 million [2][10] - Operating profit (EBIT) for Q2 2025 was €552 million, an 8% increase from €511 million in Q2 2024, with an EBIT margin of 30.9% [2][13] - Net profit for Q2 2025 was €425 million, up 2.9% from €413 million in Q2 2024, with diluted EPS at €2.38 compared to €2.29 in the prior year [2][17] Shipments and Product Mix - Total shipments for Q2 2025 were 3,494 units, slightly up from 3,484 units in Q2 2024, with a total of 7,087 units shipped in the first half of 2025, a 1% increase from 7,044 units in the same period last year [2][3] - The product mix included six internal combustion engine models and five hybrid engine models, representing 55% and 45% of total shipments, respectively [7] Geographic Performance - In Q2 2025, shipments in the Americas increased by 12 units (1%), while EMEA decreased by 9 units (1%), and Mainland China, Hong Kong, and Taiwan saw a decrease of 4 units (1%) [3][4] - The Rest of APAC region experienced an increase of 11 units (2%) [3] Cash Flow and Debt - Industrial free cash flow for Q2 2025 was strong at €232 million, driven by increased EBITDA, partially offset by capital expenditures of €239 million [18] - As of June 30, 2025, net industrial debt was €338 million, up from €49 million as of March 31, 2025, reflecting a dividend payment of €536 million [19] Guidance and Market Outlook - The company expressed stronger confidence in its 2025 guidance, with expectations for net revenues to exceed €7 billion, representing a growth of at least 5% compared to 2024 [22] - The removal of the 50 basis points risk on percentage margins due to a recent agreement on lower import tariffs between the US and EU is expected to positively impact financial performance [21]