Ferrari(US:RACE)2026-02-10 15:02Financial Data and Key Metrics Changes - In 2025, the company achieved revenues exceeding EUR 7.1 billion, with EBIT growing to over EUR 2.1 billion, marking a double-digit growth [10] - Industrial cash flow generation surpassed EUR 1.5 billion, reflecting a significant increase of approximately 50% compared to the previous year [22] - The EBITDA margin reached 38.8%, while the EBIT margin stood at 29.5%, indicating strengthened percentage margins despite external challenges [22] Business Line Data and Key Metrics Changes - The sports car segment saw an improved overall mix, contributing positively to revenue growth, despite the phase-out of the Daytona SP3 [17] - Revenues from racing increased due to new partnerships and enhanced sponsor contributions [17] - The lifestyle segment maintained a growth pace aligned with the company's development investments [17] Market Data and Key Metrics Changes - The company reported a solid order book extending towards the end of 2027, indicating strong demand dynamics [11] - Residual values remained stable and solid, supported by recent auction results [11] - The company noted a decline in deliveries to the U.S. market, attributed to model changeovers rather than demand weakness [73] Company Strategy and Development Direction - The company launched six new sports cars in 2025, including the Ferrari Luce, as part of its strategy for horizontal product diversification and technology neutrality [6] - Future plans include the complete introduction of the Ferrari Luce and the launch of four new models in 2026 [14] - The company aims to enhance client experiences through craftsmanship and quality, emphasizing a client-centric approach [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term opportunities despite ongoing global uncertainties [25] - The company anticipates 2026 to be a year of growth, with expectations for a stronger product mix and continued investment in brand development [15][24] - Management highlighted the importance of maintaining a disciplined approach in the current economic context [16] Other Important Information - The company completed its EUR 2 billion share buyback program one year ahead of schedule [18] - A competitive award of up to EUR 14,900 was announced for employees in Italy, reflecting the company's strong performance [10] Q&A Session Summary Question: Margin expectations for 2026 - Management indicated that operating margins are expected to be flat to up in the second half of 2026, with a stronger product mix anticipated [30] Question: Guidance for 2026 and cost offsets - Management expects mix and pricing to offset higher SG&A and industrial costs in 2026 [36] Question: Models driving the order book - The 296 Speciale and Testarossa models are significant contributors to the order book, with new clients attracted by the Amalfi model [41] Question: Impact of FX on bottom line - A headwind of about EUR 200 million is anticipated due to foreign exchange rates, primarily from the US dollar and Japanese yen [62] Question: R&D and government grants - R&D expenses are expected to remain stable, with additional government grants anticipated in future years [116] Question: Free cash flow expectations - Free cash flow is expected to be strong, with net working capital contributions being more neutral compared to 2025 [78]