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 50% increase compared to the previous year [22] - The EBITDA margin was reported at 38.8%, while the EBIT margin stood at 29.5%, indicating strengthened percentage margins despite external pressures [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 development investments, with successful client activations driving engagement [9][17] Market Data and Key Metrics Changes - The company reported a solid order book extending into late 2027, with stable residual values evidenced by strong auction results [11] - The Americas market experienced a decline in deliveries, 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 a strategy focused on 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, alongside continued investment in brand and lifestyle retail networks [15][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term opportunities despite ongoing global uncertainties, emphasizing a disciplined approach to growth [16][25] - The company anticipates 2026 to be a year of growth, with expectations for a stronger product mix and continued support from sponsorships and lifestyle activities [24][25] Other Important Information - The company completed its EUR 2 billion share buyback program one year ahead of schedule, reflecting strong financial performance [18] - A competitive award of up to EUR 14,900 was announced for employees in Italy, aligning employee rewards with company performance [10] Q&A Session Summary Question: Margin expectations for 2026 - Management indicated that operating margins are expected to be flat to down in H1 2026, with an anticipated increase in the second half due to a stronger product mix [29][31] Question: 2026 guidance on mix and pricing - Management expects mix and pricing to offset higher SG&A and industrial costs in 2026 [35][36] Question: Models driving the order book - The 296 Speciale, Testarossa, and Amalfi models are currently driving the order book, with new clients attracted to the brand [40][41] Question: F80 shipments in Q4 - A few units of the F80 were shipped in Q4, with production ramping up as planned [51] Question: Foreign exchange impact on bottom line - The company anticipates a EUR 200 million headwind from foreign exchange rates in 2026, primarily due to the lack of hedging benefits compared to 2025 [62][90] Question: R&D and government grants - R&D expenses are expected to remain stable, with additional government grants anticipated in future years [116] Question: Residual values and dealer confidence - Residual values are reported as stable and solid, with strong dealer confidence in the brand [50][56]