Ferrari 2025 Q1 Earnings Surpasses Expectations as Net Income Rises 17%
Wednesday, May 7, 2025 1:36 am ET
54min read Ferrari (RACE), ranking 161st by market capitalization, reported its fiscal 2025 Q1 earnings on May 06th, 2025. The luxury car manufacturer exceeded analyst expectations with a 13.0% revenue growth year-over-year, reaching $1.79 billion compared to $1.77 billion forecasted. Earnings per share also outperformed estimates, rising to $2.30 against a consensus of $2.32, indicating continued financial strength. Despite potential tariff impacts, Ferrari maintained its fiscal guidance, showcasing confidence in its strategic direction and ongoing demand for personalized vehicles.
Revenue
Ferrari's revenue for the first quarter of 2025 reached $1.79 billion, reflecting a 13.0% increase from the previous year. The Cars and spare parts segment led the growth, contributing $1.54 billion. The Sponsorship, commercial, and brand segment added $191.34 million, while other revenues accounted for $63.09 million, demonstrating the company's diverse revenue streams.
Earnings/Net Income
In 2025 Q1, Ferrari's earnings per share rose by 17.9% to $2.30 from the previous year's $1.95, underscoring a positive earnings trajectory. The net income also showed robust growth, climbing to $412.05 million, marking a 17.0% increase. This performance highlights strong profitability and suggests favorable investor sentiment.
Price Action
The stock price of Ferrari has edged up 0.72% during the latest trading day, has edged up 2.46% during the most recent full trading week, and has jumped 9.95% month-to-date.
Post-Earnings Price Action Review
Over the past five years, buying Ferrari (RACE) shares after a quarter-over-quarter revenue drop and holding for 30 days yielded a 7.11% return, considerably underperforming the benchmark by 76.01%. The strategy's compound annual growth rate stood at 1.40%, with a maximum drawdown of -6.29% and a Sharpe ratio of 0.26, indicating modest risk-adjusted returns. This historical analysis suggests that despite potential short-term gains, this strategy has not consistently delivered superior returns compared to broader market alternatives.
CEO Commentary
"In the first quarter of 2025, with very few incremental shipments year on year, all key metrics recorded double-digit growth, underscoring a strong profitability driven by our product mix and continued demand for personalizations," said Benedetto Vigna, CEO of Ferrari. The company remains focused on its strategy of "quality of revenues over quantity," with plans for six new models this year, including the 296 Speciale and the Ferrari Elettrica. Despite challenges from U.S. tariffs, Vigna expressed optimism about future performance, highlighting robust demand and a commitment to enhancing brand value through continuous product innovation and increased personalization offerings.
Guidance
Ferrari reiterated its fiscal 2025 guidance, expecting net revenues to exceed 7.0 billion euros and adjusted EPS to be at least 8.60 euros. Adjusted EBITDA is projected to exceed 2.68 billion euros, maintaining a margin greater than 38.3%. The guidance includes a potential risk of a 50 basis points reduction in profitability margins due to updated commercial policies following U.S. tariffs on EU cars. The company anticipates strong industrial free cash flow generation, supported by a favorable product mix and increased personalization revenues.
Additional News
Ferrari's team principal, Frederic Vasseur, emphasized the need to find the right balance for the SF-25 race car following continued early-season challenges. The team faces frustration after a seventh and eighth place finish at the Miami Grand Prix but remains focused on addressing performance issues. Despite these hurdles, Ferrari is committed to improving car balance and performance, aiming for greater competitiveness in upcoming races. The company also plans to introduce upgrade packages, including a new floor to enhance aerodynamic efficiency, as part of its development trajectory. Ferrari hopes to leverage the FIA's upcoming technical directive to narrow the performance gap with competitors.
Revenue
Ferrari's revenue for the first quarter of 2025 reached $1.79 billion, reflecting a 13.0% increase from the previous year. The Cars and spare parts segment led the growth, contributing $1.54 billion. The Sponsorship, commercial, and brand segment added $191.34 million, while other revenues accounted for $63.09 million, demonstrating the company's diverse revenue streams.
Earnings/Net Income
In 2025 Q1, Ferrari's earnings per share rose by 17.9% to $2.30 from the previous year's $1.95, underscoring a positive earnings trajectory. The net income also showed robust growth, climbing to $412.05 million, marking a 17.0% increase. This performance highlights strong profitability and suggests favorable investor sentiment.
Price Action
The stock price of Ferrari has edged up 0.72% during the latest trading day, has edged up 2.46% during the most recent full trading week, and has jumped 9.95% month-to-date.
Post-Earnings Price Action Review
Over the past five years, buying Ferrari (RACE) shares after a quarter-over-quarter revenue drop and holding for 30 days yielded a 7.11% return, considerably underperforming the benchmark by 76.01%. The strategy's compound annual growth rate stood at 1.40%, with a maximum drawdown of -6.29% and a Sharpe ratio of 0.26, indicating modest risk-adjusted returns. This historical analysis suggests that despite potential short-term gains, this strategy has not consistently delivered superior returns compared to broader market alternatives.
CEO Commentary
"In the first quarter of 2025, with very few incremental shipments year on year, all key metrics recorded double-digit growth, underscoring a strong profitability driven by our product mix and continued demand for personalizations," said Benedetto Vigna, CEO of Ferrari. The company remains focused on its strategy of "quality of revenues over quantity," with plans for six new models this year, including the 296 Speciale and the Ferrari Elettrica. Despite challenges from U.S. tariffs, Vigna expressed optimism about future performance, highlighting robust demand and a commitment to enhancing brand value through continuous product innovation and increased personalization offerings.
Guidance
Ferrari reiterated its fiscal 2025 guidance, expecting net revenues to exceed 7.0 billion euros and adjusted EPS to be at least 8.60 euros. Adjusted EBITDA is projected to exceed 2.68 billion euros, maintaining a margin greater than 38.3%. The guidance includes a potential risk of a 50 basis points reduction in profitability margins due to updated commercial policies following U.S. tariffs on EU cars. The company anticipates strong industrial free cash flow generation, supported by a favorable product mix and increased personalization revenues.
Additional News
Ferrari's team principal, Frederic Vasseur, emphasized the need to find the right balance for the SF-25 race car following continued early-season challenges. The team faces frustration after a seventh and eighth place finish at the Miami Grand Prix but remains focused on addressing performance issues. Despite these hurdles, Ferrari is committed to improving car balance and performance, aiming for greater competitiveness in upcoming races. The company also plans to introduce upgrade packages, including a new floor to enhance aerodynamic efficiency, as part of its development trajectory. Ferrari hopes to leverage the FIA's upcoming technical directive to narrow the performance gap with competitors.
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