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]

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'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 Viewpoint - Ferrari's stock experienced a significant drop of nearly 16% following the unveiling of its first full-electric model, raising questions about whether this presents a buying opportunity for investors [1][10]. Group 1: Electric Vehicle Strategy - Ferrari is set to invest 4.7 billion euros between 2026 and 2030 to electrify its lineup, with expectations that battery-electric vehicles (BEVs) will account for 20% of sales by the end of the decade [5]. - The company is already partially electrified, with approximately 50% of its vehicle shipments being hybrids [5]. - Competitors like Lamborghini and Porsche are delaying or scaling back their electric vehicle plans due to weak demand, positioning Ferrari uniquely in the market [4]. Group 2: Financial Projections - Ferrari's long-term financial guidance for 2030 fell short of analyst expectations, projecting earnings of 11.50 euros per share on revenue of 9 billion euros, compared to the 9.9 billion euros analysts anticipated [8]. - The company slightly raised its outlook for 2025, expecting a profit of 8.80 euros per share on revenue of 7.1 billion euros [8]. Group 3: Market Position and Brand Strength - Ferrari maintains a strong competitive advantage with high margins and a unique brand image that is difficult for competitors to replicate [10]. - The performance of the Elettrica, Ferrari's first full EV, will be crucial in determining the future success of its electric lineup and its ability to resonate with core enthusiasts [9].

Core Insights - Ferrari's stock dropped nearly 15% due to disappointing management projections, but it is currently trading within a historical support range, which has previously led to significant rebounds averaging 22.8% [1] Group 1: Company Performance and Projections - Ferrari has reduced its 2030 electric vehicle (EV) production target from 40% to 20%, indicating a more conservative approach to electrification [5] - The company projected 2030 EBITDA of at least €3.6 billion, suggesting a slower growth rate than earlier forecasts, which has raised investor concerns [5] - The launch of Ferrari's first EV, the Elettrica, has been delayed until late 2026, with a second EV model still in early planning stages, creating uncertainty about future product offerings [5] - Revenue growth for Ferrari has been 12.4% over the last twelve months (LTM) and an average of 15.7% over the past three years [5] - The company has a free cash flow margin of approximately 18.2% and an operating margin of 28.9% LTM [5] - Ferrari's stock is currently trading at a price-to-earnings (PE) multiple of 46.0, which is higher compared to the S&P [5] Group 2: Market Context and Risks - Historical data shows that Ferrari's stock has experienced significant declines during market downturns, including a 38% drop during the inflation shock and a 28% decline during the Covid sell-off [4] - The stock's current trading levels have previously seen buying interest, with three significant rebounds in the past decade [1][3]

Core Insights - Ferrari's long-term financial guidance has disappointed investors, leading to a significant drop in stock price [1][4] Financial Projections - Ferrari projects 2025 net revenue to reach or exceed 7.1 billion euros ($8.24 billion), an increase from the previous estimate of over 7 billion euros, but still deemed insufficient by investors [2] - The adjusted EBITDA for 2025 is expected to be greater than 2.72 billion euros ($3.14 billion), up from 2.68 billion euros ($3.1 billion), yet still not meeting investor expectations [2] - For 2030, Ferrari targets revenue of 9 billion euros ($10.4 billion) with adjusted EBITDA of 3.6 billion euros ($4.16 billion) or more, which reflects a compound annual growth rate (CAGR) of only 6%, below the 10% rate forecasted in 2022 [3] Market Reaction - Following the updated guidance, Ferrari's stock fell over 10%, indicating investor dissatisfaction with the company's conservative outlook [4] Electric Vehicle Strategy - Ferrari's initial target of 40% of sales from electric vehicles (EVs) has been revised down to only 20%, with the remainder split between gas-powered and hybrid vehicles [4] - The company attributes this shift to a "client-centric" approach, suggesting that demand for electric Ferraris is not as strong as anticipated [5] - Despite the adjustments, Ferrari plans to launch its EV, the Ferrari Elettrica, in 2026, which will feature a four-seat grand touring design with over 1,000 horsepower [6][7] Executive Statement - Ferrari's executive chair, John Elkann, emphasized the company's commitment to innovation through the integration of technology, design, and manufacturing in the development of the Elettrica [8]

Core Insights - Ferrari's shares dropped 15% due to disappointment over its new long-term financial targets, resulting in a loss of 13.5 billion euros ($15.67 billion) in market capitalization [1][5][10] - The company set a revenue target of 9 billion euros ($10.4 billion) for 2030, which is an increase from the 7.1 billion euro forecast for this year, but fell short of market expectations [1][3][5] Financial Targets - The new revenue target of 9 billion euros for 2030 is seen as less ambitious than what analysts anticipated, leading to a significant decline in share price [1][5] - CEO Benedetto Vigna emphasized the importance of setting achievable targets, stating that the company cannot commit to figures that are unrealistic [3][5] Electric Vehicle Strategy - Ferrari unveiled its first electric vehicle, the Elettrica, showcasing a production-ready chassis but has not yet set a price [4][8] - The company's updated electrification strategy now aims for a lineup in 2030 consisting of 40% internal combustion engine (ICE) models, 40% hybrids, and 20% fully electric vehicles, a shift from the previous target of 40% EVs, 40% hybrids, and 20% ICE models [6][9][10] Model Launch Plans - Ferrari plans to launch an average of four new models per year between 2026 and 2030, maintaining a steady rhythm to engage its wealthy clientele [13] - The Elettrica is designed to complement Ferrari's traditional petrol and hybrid models, featuring 1,000 horsepower and a four-door configuration [14] Client Engagement and Lifestyle Strategy - The active client base has grown by approximately 20% since 2022, reaching 90,000, prompting plans for new "Tailor Made" centers in Tokyo and Los Angeles by 2027 [15] - Ferrari is expanding its lifestyle strategy with flagship stores planned in London and New York by 2026, aiming to offer a broader range of luxury goods and experiences [16]

Summary of Ferrari's 2025 Capital Markets Day Company Overview - **Company**: Ferrari (NYSE:RACE) - **Event**: 2025 Capital Markets Day - **Date**: October 09, 2025 Key Points and Arguments Company Growth and Achievements - Since its IPO in 2015, Ferrari has invested €6.5 billion in capital expenditures, launching 41 new sports cars and doubling its workforce from approximately 3,000 to 6,000 employees [3][2] - The company has filed 883 patents since the IPO, with 144 filed in the current year, showcasing its commitment to innovation [3][2] - Ferrari emphasizes its unique identity through three dimensions: heritage, technology, and racing [4][3] Educational Initiatives - Ferrari announced the creation of the M-Tech Alfredo Ferrari educational hub in Maranello, set to open in 2029, aimed at training future engineers and technicians [5][4] Commitment to Innovation - The new Ferrari Elettrica is highlighted as a revolutionary electric vehicle that combines technology, design, and manufacturing craftsmanship [6][5] - The company aims to maintain its uniqueness through continuous innovation and commitment to its people and community [7][6] Racing and Performance - Ferrari's racing heritage is a core aspect of its identity, with a commitment to winning in Formula One and endurance racing [9][8] - The company has achieved significant success in racing, including three consecutive wins at Le Mans [9][8] Product Strategy and Market Positioning - Ferrari's product strategy focuses on creating unique models for different client needs, emphasizing a horizontal diversification approach [29][28] - The company plans to increase the number of internal combustion (IC) models to 40% by 2030, while reducing electric models to 20% [28][27] Client Engagement and Community - Ferrari has expanded its client base to approximately 90,000 active clients, a 20% increase from 2022, with 32,000 new clients acquired since then [45][44] - The company aims to enhance the client experience through personalized services and exclusive events, fostering a strong community among Ferraristi [54][53] Sustainability and Decarbonization - Ferrari is committed to sustainability, establishing a Green Dealer Award to recognize dealers achieving decarbonization goals [58][57] - The company emphasizes the importance of maintaining a balance between luxury and environmental responsibility [20][19] Future Outlook - Ferrari plans to continue launching around four new models per year, with a focus on the upcoming Ferrari Elettrica as a key addition to its product lineup [60][59] - The company aims to leverage technology neutrality to offer diverse powertrains, including IC, hybrid, and electric options, ensuring a unique driving experience for clients [62][61] Additional Important Content - Ferrari's unique business model is characterized by a high percentage of cars still in circulation, with over 90% of the 330,000 cars produced since 1947 still alive [38][37] - The company emphasizes the importance of personalization, ensuring that every car is unique to its owner [53][52] - Ferrari's commitment to training and developing its workforce is highlighted, with around 50 tailored courses offered to employees [44][43] This summary encapsulates the key points discussed during Ferrari's 2025 Capital Markets Day, reflecting the company's growth, commitment to innovation, and strategic direction in the luxury automotive market.