Renewed Shareholder Stability at Ferrari: Strategic and Valuation Implications of Exor and Piero Ferrari's Pact

In February 2025, Exor, the Italian holding company of the Agnelli family, executed a strategic maneuver that has significant implications for Ferrari's long-term trajectory. By reducing its stake in Ferrari by 4% through an accelerated bookbuild offering, Exor raised approximately €3 billion—funds earmarked for portfolio diversification, a €1 billion share buyback, and potential “sizeable new acquisitions”Exor Press Release - ABO Launch^[1]. Despite this reduction, Exor retains 20% economic rights and 30% voting rights in Ferrari, maintaining its position as the largest shareholder. Crucially, the governance structure of Ferrari remains unchanged, with the renewed shareholder agreement between Exor and Piero Ferrari ensuring combined voting control near 50%Ferrari Financial Results Q2 2025^[3]. This stability, coupled with Ferrari's robust financial performance, positions the luxury automaker for sustained growth in a rapidly evolving market.

Strategic Implications of the Stake Reduction

Exor's decision to divest 4% of its Ferrari stake is not a retreat but a calculated step toward strategic flexibility. The proceeds from the sale provide Exor with liquidity to pursue new investment opportunities, a move that aligns with its broader goal of diversifying its portfolio beyond automotive and media holdingsExor Press Release - ABO Launch^[1]. For Ferrari, this reduction in Exor's economic stake does not dilute its governance influence, as the voting rights of Exor and Piero Ferrari remain consolidated. This arrangement ensures that the Agnelli family and Ferrari's founder's son continue to steer the company's strategic direction, preserving the brand's legacy while enabling financial agilityFerrari Financial Results Q2 2025^[3].

The renewed governance pact also underscores the alignment of interests between Exor and Piero Ferrari. By maintaining a combined voting stake close to 50%, the two parties reinforce their commitment to long-term value creation. This stability is critical in an industry where brand heritage and innovation must coexist. As noted by Reuters, Exor CEO John Elkann emphasized the family's intention to remain Ferrari's largest shareholder “for the long term,” signaling confidence in the company's ability to navigate challenges such as electrification and global supply chain disruptionsFerrari Financial Results Q2 2025^[3].

Valuation and Financial Performance: A Strong Foundation

Ferrari's financial resilience in Q2 2025 further bolsters the case for its valuation. The company reported net revenues of €1,787 million, a 4.4% year-over-year increase, alongside an operating profit (EBIT) of €552 million—up 8.1% year-over-yearBetter 2025 Ferrari Profits Expected^[4]. These figures reflect the success of Ferrari's product strategy, including high-margin models like the 296 Speciale and the Ferrari Amalfi, as well as enhanced personalization services and Formula 1-related sponsorships. Analysts from Morgan Stanley and UBS have projected double-digit margin expansion for 2025, citing strong demand for luxury vehicles and a full order book through 2026Better 2025 Ferrari Profits Expected^[4].

The share buyback program, funded in part by the stake sale, is another tailwind for valuation. By reducing the number of shares outstanding, Exor's €1 billion buyback is expected to enhance earnings per share (EPS), a metric that historically drives investor sentiment in high-growth sectors. Additionally, the proceeds from the 4% stake sale provide a buffer for potential M&A activity, which could unlock new revenue streams without diluting Ferrari's core identityExor Press Release - ABO Launch^[1].

Governance Stability and Investor Confidence

The renewed governance pact between Exor and Piero Ferrari is a cornerstone of Ferrari's long-term strategy. By preserving voting control, the agreement mitigates the risk of external interference in decision-making, a critical factor in maintaining the brand's exclusivity and innovation focus. This stability is particularly valuable in an era where ESG (Environmental, Social, and Governance) criteria increasingly influence investor behavior. Ferrari's recent wage agreement with trade unions—boosting minimum tabular wages by 6.5%—further demonstrates its commitment to balanced governanceBetter 2025 Ferrari Profits Expected^[4].

From a valuation perspective, governance stability reduces uncertainty for investors. A report by Forbes highlights that Ferrari's order book remains full through 2026, with new models—including its first electric vehicle—set to launch in October 2025Better 2025 Ferrari Profits Expected^[4]. These developments, combined with the Agnelli family's enduring influence, suggest that Ferrari's premium pricing power and brand equity are unlikely to wane.

Looking Ahead: Balancing Tradition and Innovation

Ferrari's 2025 roadmap is a testament to its ability to balance tradition with innovation. The company's upcoming electric vehicle launch, while a departure from its combustion-engine heritage, is a strategic necessity in a market increasingly dominated by sustainability trends. The renewed governance pact ensures that such transitions are managed with the brand's legacy in mind, avoiding the pitfalls of hasty or misaligned innovation.

Moreover, Ferrari's exclusive events—such as the 2025 Casa Ferrari celebration at Pebble Beach—reinforce its brand's prestige and customer loyalty2025 Casa Ferrari - Pebble Event^[5]. These experiences, tailored for high-net-worth individuals, not only drive direct sales but also enhance the intangible value of the Ferrari brand, a critical component of its valuation.

Conclusion

The renewed shareholder stability at Ferrari, anchored by Exor's strategic stake reduction and the governance pact with Piero Ferrari, provides a robust foundation for long-term value creation. By maintaining control while securing liquidity, Exor has positioned Ferrari to navigate macroeconomic headwinds and industry transitions without compromising its core identity. With strong financial performance, a full order book, and a clear innovation roadmap, Ferrari's valuation appears well-supported. For investors, this is a rare combination of governance certainty and growth potential—a hallmark of enduring luxury brands in a volatile market.