Ferrari 2025 Q2 Earnings Strong Growth as Net Income Increases 2.9%

Ferrari, ranking 184th by market capitalization, reported its fiscal 2025 Q2 earnings on July 31st, 2025. Ferrari exceeded expectations with a 2.9% increase in net income, reflecting steady growth and robust performance. The company maintained its full-year guidance, anticipating revenue growth of at least 5% and EBIT growth of at least 7%. This positive outlook, bolstered by favorable US-EU tariff agreements, showcases Ferrari's confidence in overcoming supply chain challenges and sustaining high industrial free cash flow generation. The stock price, however, saw a decline post-earnings, tumbling 14.10% during the most recent full trading week.

Revenue

Ferrari's total revenue rose 4.4% to $1.79 billion in Q2 2025, compared to $1.71 billion in the same quarter the previous year. Revenue from the cars and spare parts segment reached $1.51 billion, while sponsorship, commercial, and brand activities contributed $204.51 million. Additionally, other segments generated $76.22 million, culminating in total net revenues of $1.79 billion.

Earnings/Net Income

Ferrari's earnings per share climbed 3.9% to $2.38 in Q2 2025, up from $2.29 in Q2 2024, indicating ongoing earnings growth. Net income reached $425.10 million, a 2.9% increase from $413.28 million in the previous year, demonstrating a stable business performance. Despite modest EPS growth, Ferrari's consistent profitability over the past 11 years signals a solid financial standing.

Price Action

The stock price of Ferrari has edged down 2.82% during the latest trading day, has tumbled 14.10% during the most recent full trading week, and has tumbled 9.65% month-to-date.

Post-Earnings Price Action Review

The post-earnings strategy of buying Ferrari (RACE) shares 30 days after its earnings release, following a quarter-over-quarter revenue increase for the past three years, yielded moderate returns but underperformed the benchmark. This approach delivered a compound annual growth rate of 4.18% and a total return of 22.56%, compared to an 85.57% benchmark return. The strategy's Sharpe ratio of 0.65 indicates a reasonable risk-adjusted return, although the maximum drawdown of 0.00% suggests it successfully avoided significant downturns. Despite its risk management strength, the investment strategy did not achieve the high returns seen in the benchmark, highlighting a performance gap.

CEO Commentary

“The first semester of 2025 reminded us once more about the importance of agility and flexibility in the management of our Company. Today’s strong results reflect our commitment to execute our strategy with discipline and focus. We continue to drive innovation and enrich our product portfolio, which fuels an already strong order book. Testament to that is the overwhelming demand for the 296 Speciale family and the excellent initial feedback on the newly launched Ferrari Amalfi, a coupé that redefines the concept of the contemporary grand tourer,” said Benedetto Vigna, CEO of Ferrari. The company is witnessing robust performance driven by an enriched product mix and strategic investments in branding and lifestyle activities.

Guidance

Ferrari maintains its full-year guidance, expecting revenue growth of at least 5% and EBIT growth of at least 7%. The removal of the previously flagged 50-basis-point margin risk reflects increased confidence following favorable US-EU tariff agreements. The company anticipates strong contributions from racing activities and lifestyle revenues, while managing increased costs due to supply chain challenges. Overall, Ferrari is focused on sustaining high industrial free cash flow generation, driven by continued strong profitability despite rising capital expenditures.

Additional News

Ferrari has recently extended its agreement with Fred Vasseur, securing his role as Team Principal of Scuderia Ferrari HP for the coming Formula 1 seasons. This strategic move aims to stabilize and reinforce the team's leadership amidst ongoing performance challenges. Additionally, Ferrari unveiled the new Ferrari Amalfi on July 1, 2025, a V8 coupé designed to replace the Ferrari Roma, highlighting the brand's commitment to innovation and adaptability. Moreover, Ferrari's recent technical updates to the SF-25 car, including an upgraded rear suspension, mark the final major enhancement for the 2025 season, focusing on maximizing performance in the remainder of the year.