Core Insights - Ferrari's stock (RACE) has faced challenges this year due to a slowdown in the luxury market, tariff concerns, and weak sales in China, leading to a reduction in its electric vehicle (EV) ambitions from a target of 40% to 20% by 2030 [1][5][11] Company Performance - Ferrari reported net revenues of 1.79 billion euros ($2.03 billion) for Q2 fiscal 2025, a 4.4% year-over-year increase, but below Wall Street's forecast of $2.15 billion [8] - Operating profit (EBIT) rose to 552 million euros, an 8.1% increase, with a 30.9% operating margin for the quarter [9] - Total shipment volumes remained flat at 3,494 units, reflecting the company's focus on brand exclusivity [9] Product Development - The company unveiled its first electric model, the Elettrica, which is set to launch in late 2026, featuring a top speed of 310 kilometers per hour and a range of at least 530 kilometers [12][14] - The Elettrica's chassis is built with 75% recycled aluminum, emphasizing sustainability, and is expected to start at around 500,000 euros ($580,400) [13] Financial Guidance - Ferrari slightly raised its fiscal 2025 guidance, expecting net revenue of at least 7.1 billion euros ($8.2 billion) and adjusted EBITDA of about 2.72 billion euros [15] - The long-term growth outlook is modest, with a forecast of around 9 billion euros in net revenue by 2030, which did not meet market expectations [16] Market Sentiment - Despite recent setbacks, Wall Street maintains a "Moderate Buy" consensus rating on Ferrari, with an average price target of $505.64, indicating a potential upside of 27% [17][18]

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]