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Ferrari NV’s second-quarter earnings for 2025 fell slightly short of expectations, with the company reporting an earnings per share (EPS) of $2.38 compared to the forecasted $2.40. Revenue also missed projections, coming in at $1.79 billion against an expected $1.82 billion. Following the earnings release, Ferrari’s stock experienced a notable decline, dropping 10.81% in pre-market trading. According to InvestingPro data, the company maintains a strong financial health score of 3.11 (rated as GREAT), with two analysts recently revising their earnings estimates upward for the upcoming period. For deeper insights into Ferrari’s valuation and growth potential, InvestingPro offers 16 additional exclusive tips and a comprehensive Pro Research Report.
Key Takeaways
- Ferrari’s Q2 2025 EPS and revenue both missed analyst expectations.
- The stock price fell by 10.81% in pre-market trading following the earnings release.
- New product launches and ongoing innovation were highlighted, including the upcoming electric vehicle.
- Ferrari confirmed its 2025 guidance with increased confidence despite the earnings miss.
- The company is focusing on electrification, aiming for 40% by 2030.
Company Performance
Ferrari reported a 4.4% year-over-year increase in total revenues for Q2 2025, reaching €1.8 billion. The company’s EBITDA exceeded €700 million, reflecting a robust margin of 39.7%. The EBIT margin was close to 31%, showcasing strong operational efficiency. The firm’s industrial free cash flow stood at €232 million, while net industrial debt was reported at €338.8 million. InvestingPro analysis shows Ferrari’s impressive track record with a 12.36% revenue growth over the last twelve months and strong returns, maintaining a 50.52% gross profit margin. The company appears on the most overvalued stocks list, trading at premium multiples across various metrics.
Financial Highlights
- Revenue: €1.8 billion, up 4.4% year-over-year
- EBITDA: Over €700 million, with a margin of 39.7%
- EPS: $2.38, slightly below forecast
- Net industrial debt: €338.8 million
Earnings vs. Forecast
Ferrari’s Q2 2025 EPS of $2.38 missed the forecasted $2.40 by 0.83%, while revenue of $1.79 billion fell short of the $1.82 billion projection by 1.65%. This marks a slight deviation from expectations, reflecting challenges in meeting analyst forecasts.
Market Reaction
In response to the earnings miss, Ferrari’s stock price decreased by 10.81% in pre-market trading, settling at $462.10. This movement reflects investor concerns over the earnings miss and its potential implications. Despite today’s volatility, InvestingPro data shows Ferrari typically trades with low price volatility, with a beta of 0.69. The stock has delivered impressive returns, up 18.31% year-to-date and 21.7% over the past year. The stock’s performance remains strong within its 52-week range of $391.54 to $519.10. Get access to Ferrari’s complete financial health analysis and Fair Value estimate, along with 1,400+ other detailed Pro Research Reports, exclusively on InvestingPro.
Outlook & Guidance
Ferrari remains optimistic about its future performance, confirming its guidance for 2025 with increased confidence. The company anticipates a neutral delivery mix and lower industrial costs in the second half of the year. Strategic initiatives include the launch of its first electric vehicle, Elettrica, in October, and a target of 40% electrification by 2030.
Executive Commentary
CEO Benedetto Vigna emphasized the company’s commitment to delivering on its promises, stating, "We are keeping delivering on promise." CFO Antonio Picapicon added, "We continue to execute our strategy with discipline and focus," highlighting the company’s strategic direction and operational discipline.
Risks and Challenges
- Supply Chain Issues: Potential disruptions could impact production timelines.
- Market Saturation: Competition in the luxury automotive market remains intense.
- Macroeconomic Pressures: Economic fluctuations could affect consumer spending.
- Tariff Impacts: U.S. tariffs may influence cost structures and pricing strategies.
- Electrification Transition: The shift to electrification presents both opportunities and challenges.
Q&A
During the earnings call, analysts sought clarity on the electric vehicle program, with management confirming no delays. Discussions also covered the impact of U.S. tariffs and the company’s product mix and pricing strategies, addressing concerns about potential market uncertainties.
Full transcript - Ferrari NV (RACE) Q2 2025:
Conference Operator: Good day, and thank you for standing by. Welcome to Ferrari twenty twenty five Q2 Results Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. To ask a question during the session, you’ll need to press star, one and 1 on your telephone.
You will then hear an automated message advising your hand is raised. Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Nicolita Roseau, Head of Investor Relations. Please go ahead.
Nicoletta Roseau, Head of Investor Relations, Ferrari: Thank you, Maggie, and welcome to everyone who is joining us. Today, we plan to cover the group’s second quarter twenty twenty five operating results, and the duration of the call is expected to be around sixty minutes. Today’s call will be hosted by the Group CEO, Mr. Benedetto Vigna and Group CFO, Mr. Antonio Picapicon.
All relevant materials are available in the Investors section of the Ferrari corporate Web website and at the end of the presentation, we will be available to answer your questions. Before we begin, let me remind you that any forward looking statements we might make during today’s call are subject to the risks and uncertainties mentioned in the safe harbor statement included on Page two of today’s presentation, and the call will be governed by this language. With that said, I’d like to turn the call over to Benedesto.
Benedetto Vigna, Group CEO, Ferrari: Thank Melissa, and thank you, everyone, for joining us today. Despite an uncertain macroeconomic environment, ongoing geopolitical tensions and market volatility, extraordinary, we continue to execute our business plan with a focus, discipline and confidence. We base this confidence on the solidity and uniqueness of our business model, the remarkable level of visibility that we enjoy and the continued loyalty of our community. We remain confident and well prepared to navigate potential macro threats, including trade tensions, currency fluctuations and financial market volatility, which require an increased level of cautiousness. And while we can say that we are completely immune to global events we might encounter, our ability to adapt has been remarkable.
Among good factors that underscore our solidity and continuous progress, there are five I would like to underline with all of you. One, we are on track with our product development, in particular with the Ferrari Electrica, which I had the pleasure to drive a couple of weeks ago on the racetrack. And I can tell really you how excited we are for the upcoming launch. Two, we continue to evolve our stunning offering. In July, we introduced the Ferrari Amazfit, the eleventh model of the 15 model road map that we announced in 2022 during our last Capital Market Day and our third launch of this year after the two special series, the two ninety six Speciale and Speciale Versa.
Such a number of new model launches and technology advancements require an incredible team effort and effective management of complexity and utmost agility, something we should all be proud of, especially in the current context. Three, we continue to hold a strong order book entering 2027 without considering the new launched cars and with all the range models currently in production substantially sold out. Indeed, the newly launched Ferrari Amalfi is at the initial stage of the order collection and the demand for the two ninety six Specari family is significantly high, nearly reaching full coverage of the life cycle. Fourth, we continue to invest in what makes us Ferrari client centricity, product excellence, technology advancement. And it is especially thanks to the ideas of our people that we can continue to evolve and innovate.
Proof of this are the three forty one colleagues who were internally awarded for developing patent ideas in 2024. And last but not least, in line with our plans, the production ramp up of our rebuilding is proceeding at pace, as is the construction of the new paint shop, where we have just finished the walls and we are about to install the equipment. In addition, during the quarter, we began the construction of a new truck near our facilities dedicated to sport car testing. This will enhance the accuracy and repeatability of road car testing, a further effort to assure product excellence. Equally important is that we continue to deliver strong financial results.
Indeed, Q2 twenty twenty five saw continued to grow on all key metrics. A few key numbers to share with you and to highlight. One, total revenues reached approximately EUR 1,800,000,000.0, a 4.4% growth year over year with flat deliveries two, strong profitability with EBITDA in excess of EUR 700,000,000 and three, the industrial cash flow at EUR $230,000,000. At the July, we hosted over 1,500 guests from all over the world on Amalfi cost for the spectacular premieres of the new Ferrari Amalfi, our latest V eight range models. The Ferrari Amalfi redefines the concept of contemporary sportiness, combining high performance, versatility and refined aesthetics.
The name of the new model is a tribute to Southern Italy and one of the most fascinating coastlines in the world. Amarti was chosen to once again associate Ferrari with Italian beauty and a place that symbolizes our country. I was there for the first of three incredible evenings of the world premieres, where we achieved unprecedented client engagement and brand visibility. Indeed, this new model was also displayed in the town’s main square for all residents of the Amalfi Coast, the tourists and enthusiasts to enjoy. This model will allow us to nurture existing clients and attract new ones, enlarging the Ferrari community and the initial feedback has been extremely encouraging.
Moments like this always remind us of the importance of human relations. Such moments strengthen the sense of community and unite people with the company and with our Ferrari Cavalcades From our Ferrari Cavalcades to our racing days and racing challenges to our world premieres, each of these exceptional events is designed to create unique memories and experiences, which are essential to nurture our community’s passion and elevate our brand Allo. Within client events, also racing activities play a key role. At the Circuit Of Spa Francorchamps last June, we presented the new ’2 96 GT3 EVO, a race car that will make its debut in 2026 season. The February GT3 EVO perfectly fits within the array of our activities and is instrumental to enrich the experience on track of our racing clients.
And on the subject of racing, I will once again express my personal congratulations to the Ferrari team who secured the third consecutive win at the twenty four Hours of Le Mans. This is an incredible achievement and an encouraging reminder of our ambitions. Thanks to this extraordinary result, Ferrari will now keep the Winners’ Trophy forever, a right granted to those who secure victory in three consecutive editions. And in the same spirit, we are making good progress in Formula One. We know that the season started below expectation, but in recent races the team is constantly fighting for podiums and wins.
Lastly, in line with our racing heritage and spirit of innovation, we have presented the Ferrari HyperSail project. This revolutionary boat is currently under construction in Italy and it will see us take on an unprecedented new sporting challenge in the world of sailing, allowing us to keep on pushing the limits of possible in a new arena. Moreover, open innovation and two way technological transfer between the sport cars and nautical sectors are key in this project. Aerodynamics, energy efficiency, power management and flight control system are just a few examples in this respect. All these challenges remind us that we have to continue to improve in everything we do with focus, determination and four wheels on the ground.
And now, I would like to hand over to Antonio to review in detail the Q2 twenty twenty five result.
Antonio Picapicon, Group CFO, Ferrari: Gracias Benedetto, and good morning or afternoon to everyone joining us today. Starting on Page five, we provide the highlights of the second quarter, which represents a solid continuation of the year. First of all, the second quarter was basically not impacted by the incremental tariff in The US as we leverage the inventory already present in the country. Compared to the same quarter of last year, revenues and profitability grew single digits with flat deliveries. Mix and personalization were the main drivers of growth along with rating revenues, which led to particularly strong percentage margins and a solid industrial free cash flow generation.
On Page six, we deep dive into our Q2 twenty twenty five deliveries. Shipments in the quarter were driven by the 2096 GTS, the Purosangue and the Roma Spider. The SF90XX family increased its contribution. The Dodi Chichelindri family continued its ramp up phase, while the two ninety six GTB decreased and the SF90 Spider approached the end of its life cycle. Shipments of the Daytona SP3 were lower than the prior year and sequentially decreasing in line with our plans to conclude deliveries in the 2025.
In the quarter, we had a significant changeover of models. And despite the gradual phase out of the Daiton SP three, the product mix was sustained by the higher end of our product offering, namely the SF90 XX family and the Dodi Chirindri family. As customary, the geographic breakdown reflects the different product cycle as well as the company deliberate allocation strategy. On page seven, the net revenues bridge shows a 5.1% growth versus the prior year at constant currency. Greek cars and spare parts was driven by the richer product and country mix as well as higher personalizations.
Personalizations keep on being very strong, accounting for approximately 20% of total revenues from cars and spare parts, supported by the Daytona SP three and ESF 90 XX family in terms of model and mainly by the adoption of carbon and paintings in terms of offering. Sponsorship commercial and brand increased, thanks to the additional sponsorship we have this year and improved performance of the lifestyle activities, as well as higher commercial revenues linked to the better prior year Formula one ranking. Currency, net of hedges in place, had a slightly negative impact in the quarter, mainly related to the US dollar dynamics. Moving to page eight, the change in EBIT is explained by the following variances. First, mix price, positive thanks to the enriched product mix sustained by the SF90XX and the Dodi Chilindri families, increased contribution from personalization and a positive country mix supported by The Americas.
These were only partially offset by lower deliveries of the Daytona SP3. Second, industrial cost and R and D, mainly due to racing and sports cars R and D costs expensed with flat D and A. Third, higher SG and A reflecting racing expenses and brand investments. And fourth, other was positive mainly thanks to racing and lifestyle activities, lower cost due to the Formula one in season ranking assumptions that we revised downward, partially offset by the comparison with last year’s release of cars environmental provisions. Percentage margins were very strong in the quarter with the EBITDA margin at 39.7% and EBIT margin close to 31%, also benefiting from flat D and A determined by the model’s changeover.
Turning to Page nine. Our industrial free cash flow generation for the quarter was strong at €232,000,000 and reflected the increase in profitability, partially offset by the negative change in working capital provisions and others, mainly linked to higher inventory in line with our production plan. This quarter, the net impact of advances was positive, but far less significant than in Q1. Capital expenditures were mainly focused on product development and the progress in the new paint shop construction, and finally, the seasonal payment of taxes. Net industrial debt was 338,800,000.0 Euro at the June 2025, also reflecting the dividend payment occurred at the May.
Lastly, in relation to our multi year share repurchase program of €2,000,000,000 we intend to resume the repurchases aiming to complete the program by year end. Moving to Page 10, we confirm the 2025 guidance with stronger confidence on all metrics and remove the 50 basis point risk on percentage margins following the recent agreement on U. S. Tariffs, as well as lower industrial costs in H2 compared to our initial expectations. All this based on current information, despite the remaining uncertainty with respect to the timeline of application of the lower US duties on cars and other products manufactured in the European Union, which should impact the second part of the year.
Bearing in mind that for the rest of 2025, we anticipate delivery deliberately reduced compared to 2024 to prioritize quality of revenues over volume, Software product mix versus the first half of the year, mainly linked to the Daytona SP3 phase out in Q3 and the first units of the FAT shipped in Q4. Higher SG and A linked to corporate and commercial activities planned for the remaining part of the year. Higher D and A in line with the development of our portfolio and considering the start of production of new models, and finally, greater headwind from FX, assuming that the current weakness of the U. S. Dollar against the Euro persists for the remainder of the year.
The 2025 reminded us of the words unpredictability and importance of agility and flexibility. In this context, we continue to execute our strategy with discipline and focus And today’s strong results may mark continued progress on our growth path backed by our unique business model and the remarkable visibility that we enjoy. Thanks for your attention, and I turn the call over to Nicoletta.
Nicoletta Roseau, Head of Investor Relations, Ferrari: Thank you, Antonio. Maggie, we are now ready to open the Q and A session. Over to you.
Conference Operator: Thank you very much. Our first question comes from the line of Stefan Ripman from Bernstein. Your line is now open.
Stefan Ripman, Analyst, Bernstein: Yes, thank you. I have a few questions, please. First of all, could you comment on residual value developments in key markets? Secondly, could you give us a bit more detail about why these industrial costs in the second half are expected to be lower than originally expected? And third, could you talk about why there has been why we see now the change in the R and D capitalization versus amortization, so the lower benefit from this in we saw in second quarter?
Benedetto Vigna, Group CEO, Ferrari: Thank you, Steven. So there is still a virus in a key market. We told you last time that there was UK that was a market a little bit under pressure. And we put some in place some action that are showing good trend. We are working also on some models in The US, but nothing strange, I would say.
The second one was about industrial costs. Why is lower in the year? Antonio can comment about that.
Antonio Picapicon, Group CFO, Ferrari: Sure. Hi, Steven. As far as the actual is concerned, this is mainly due to an easy comp versus last year. Since last year, we had, I wouldn’t call them seasonal, but we had significantly higher costs for racing in the second quarter. And this year, these costs are not there.
And on top of this, we have a better reduced quality cost compared to what we had last year. If we look forward to the second half of the year, the better expectations are now related to the fact that in terms of supply chain costs, what we have experienced in the first half of this year is better than we had originally anticipated. So call it lower inflation. Third, R and D capitalization in the quarter and why? This is simply due to the, overlap of our project.
You know that we capitalized the spending for models for the development of models that have been internally approved. So it very much depends on that. And, obviously, the portion that the the remaining portion that is expensed to the P and L is otherwise related to racing. So it very much depends on the pace of development of our car, both in Formula One and World Insurance Championship.
Stefan Ripman, Analyst, Bernstein: Thank you. So to be clear, the reduction in industrial cost doesn’t reflect maybe postponements or delays to any programs?
Antonio Picapicon, Group CFO, Ferrari: No. Absolutely no.
Stefan Ripman, Analyst, Bernstein: Very clear. Thank you very much.
Conference Operator: Thank you. Just a moment for our next question please. Next we have Sassy Tabaldi from UBS. Your line is now open.
Sassy Tabaldi, Analyst, UBS: Hi, thanks for taking my questions. So first one, regarding your cars and spare parts growth at 3%. This is the lower growth that we have seen in quite some time. So it seems that the ASP was weaker than maybe some people in the market expected. And was that something to do also with personalization?
Or how do you expect this ASP to then evolve for the rest of the year? Because my impression was that Q3 was meant to be, let’s say, the weakest part of the year, whereas Q2 also ended up being quite weak. So it will be helpful to get a bit more clarity there. Secondly, regarding your COGS, the gross margin was extremely strong, stronger than we have seen in a very long time. And it was somewhat surprising given that your ASP ended up being a bit weaker than expected.
So what were the moving parts in the COGS that really led to this sort of strength on gross margin and how should we think about it going forward? And lastly, regarding The U. S, so now the tariffs have been lowered. I suppose that you will choose to no longer increase prices to the same extent. But is there going to be maybe in Q3 some sort of friction because some cars were shipped, they were affected by these higher tariffs.
So how does it work? Like some clients will get a different price compared to other clients. Can you just elaborate on that? Thank you.
Benedetto Vigna, Group CEO, Ferrari: Okay. Charles, Susie, I’ll take the third one and then the first two, Antonio will comment. As you remember, we were very timely in announcing the commercial policy, March 27, when the tariffs were in place when the tariffs were getting placed at 27.5%. So we will not change the commercial policy till this new 15% tariff would really become would be implemented, because as of now, is not yet implemented. It will take some time.
But you may remember also that when last time we talked here in this event, we said that the invoice or when the client will receive an invoice, you will have separated the tariff in a specific box, because it’s something that we want to make it clear to the client that one part is the price of what we do, another part is instead the tariff that depends on the country where, let’s say, the car gets sold. So when the 15% will become really effective and implemented, then we will adapt our commercial policy. Item one and two, Antonio,
Antonio Picapicon, Group CFO, Ferrari: Thanks, is Suvi. For the first one, it’s very much of that left to the to the question Stephen asked me before. Meaning, has to do with the cost of goods sold. First of all, carbon part growth, 3%. Why?
It only depends on the development of the product mix based on our plans. I don’t know how an analyst are making their their their forecast, but, basically, this is completely in line with our plan of deliveries in terms of model. And as far as personalization is concerned, as I said before, penetration is 20%, and we actually see a continuing very strong trend. So that encourages us significantly. With respect to to cost of goods sold, very strong in q two.
I think I already answered. I replied to Stephen before. It’s not just for the sport car business. We are also racing, and that depends on how cost for racing, not just in Formula one, but even in World Championship that evolved over the course of the year. For the rest is better efficiency, if you wanna like like that or lower inflation, including for quality.
So, I mean, that’s the main drivers.
Monica Vasari, Analyst, Interceptor: Okay. And Does answer?
Sassy Tabaldi, Analyst, UBS: Yeah. But when we then think about, the rest of the year, because especially in terms of mix and so on, the expectation was that Q3 was going to be the bottom for this year. So that’s still the case. So Q3 could still be weaker than If
Antonio Picapicon, Group CFO, Ferrari: I look at the sports car business, I mean, it goes without saying that Daytona will be lower because it will be the last quarter we sell it. We don’t have the F80 yet. And we just have few units of the F80 in the last quarter. Then the overall development of our margins depends also, on the racing activity and the development of the racing activity as far as possible results and is concerned.
Conference Operator: Thank you. Just a moment for our next question, please. Next we have Adam Jonas from Morgan Stanley. Your line is now open.
Adam Jonas, Analyst, Morgan Stanley: Ciao everybody. My first question is on the Electratica. And I’m not trying to get you to share any real significant details ahead of things. But remind us, is this product positioned for given it’s your first electric vehicle, all electric vehicle, is it positioned as more of a halo type of vehicle that would be offered to existing, Ferrari’s fee as like a very desired, you know, kind of obviously, it’ll be desired, but more for the existing family, the club the members of the club, existing members of the club, who you can kinda trust, who will appreciate the engineering and the effort you put into it and also be a good source of feedback when you given it such a big leap? Or is it kind of designed to kind of expand and bring in new Ferrari fee right away, right off the bat.
How do you and I realize it can be both of those things, but I just wanted to ask that question to see where you took it in terms of put kind of more controlled environment, trusted family members, a member of the
Benedetto Vigna, Group CEO, Ferrari: House of
Adam Jonas, Analyst, Morgan Stanley: Maranello? Or is it kind of a little more ambitious than that before you then launch into the future generations of electric cars? And then I have a follow-up. Grazie.
Benedetto Vigna, Group CEO, Ferrari: Thank you, Adam, for the question. I can tell you that we are about electric. Definitely, it’s a good try for you to understand how the car is positioned, but you still have to bear with us a few more weeks. And then October will be more clear. Sorry about that.
I know you are curious. I would be putting in your shoes, but it’s a good try. You did well. I can tell you that this car is meant for the people that want it. As I said, we don’t want to push the car.
We want the people to be in love with the cars. And it’s for, let’s say, people that are already in the community as well as for people that will join the community because of this addition, not transition, addition to our offering. So it’s a pity you cannot try it. Me and Antonio keep trying sometimes with the test drivers on the track on different places where nobody can see during the night. So be here with us a few more weeks.
October 8 is close.
Adam Jonas, Analyst, Morgan Stanley: Okay. Well, I thought it was a very good try if I say so myself, but you did better. You got me. Okay. My second question would be, are there enough changes there have been some significant changes from key governments, especially in The United States, but also possibly in Europe on kind of the timing and some of the rules around CO2 emissions.
And understand Ferrari, you don’t design products for CO2 rules. You design compelling beautiful products that people want but can’t get. But I’m just wondering if there’s any impact from, I mean, seems like we don’t have an EPA anymore in The United States. Some of those factors, do they at least affect some of the timing or medium or longer term product rollouts in any way of your more electric products? Or is your answer, I think, predictably going to be, Adam, we do our own thing.
We can’t control the rules and it has nothing to do with us.
Benedetto Vigna, Group CEO, Ferrari: Adam, I think that for sure, I don’t think there is any company in the world that can control how the things are moving outside the world. So we control what we do. We proceed, as Antonio said, and I said as well, focus, determination, discipline and with agility. I think that in time of this, in these days when things can change for whatever reason, the advantage to have a company such as Ferrari that is not big, that is more or less in the same place, it helps because we can take decision pretty fast. Think you know that I think we are being the lonely one that ahead of the second of April, we updated our commercial policy because I think we know what we want to do.
And now we the best way to proceed. I think the time is of the essence. When it comes to regulation, regulations are important also for us, are important for us. And this is why we are working on the sustainability. So just to make you an example, I can remember what I said a couple of conference call ago when I said that the Dodi Gjirindri is a cash It is compliant with the current regulation.
But we did already some innovation that can help us to make this car also compliant with the future this kind of car, can make it compliant with the future regulation. So allow me to say in this way. When the boundary condition change, it’s a good push for us. It’s an opportunity for us to keep challenging us, to keep learning and to keep redefining the limit. So I think this is a I mean, we keep in consideration and we know what is in our end we can control and what is instead what must be managed.
And the external condition, we are managing them. And I think that we are managing pretty well with agility. And we have to be always, like I say, with the four wheels on the ground. We’ll take when they come, we’ll manage.
Florio Sarita, Analyst, GAM: Thanks, Benedetto. Gracias.
Benedetto Vigna, Group CEO, Ferrari: Adam.
Conference Operator: Or you. Next question comes from Monica Vasari from Interceptor. Your line is now open.
Monica Vasari, Analyst, Interceptor: Yes, good afternoon and thanks for taking my questions. I hope you can hear me. My first question is on Yamalfi. So I’m just curious what the company that’s a company what the company aims to achieve with Yamalfi.
Henning Cosman, Analyst, Barclays: So
Monica Vasari, Analyst, Interceptor: do you expect to attract new customers at Iturco with Aroma? My second question is on the 296 Spanishale. Benedetta, you already said that there is an overwhelming demand and basically the order are approaching the completion of the life cycle, but any colors in terms of regions or customers could be very useful? And my last question is on the Dodi Cilindri. I remember that in the last call, you say that Dodi Cilindri gets less traction in China because of the tax.
So I’m just wondering what models do you see gaining more traction in China? Thank you very much.
Benedetto Vigna, Group CEO, Ferrari: Okay. Thank you, Monica. I’ll start from the last one. Last year, last call, I was also generic telling DODG Gyrindri not only as a car, but as a motorization because usually the tax on the DODG Gyrindri is higher in China. So number of people that are willing to pay more or less 2.7 times the price you pay in Italy is lower.
So that’s the reason why I said that we will have a new car and Amalfi is one of this that will make that is more suitable for the Chinese market. So the Amalfi and I go back to the first of your questions as if you want two key messages. One, it offer us the possibility to improve the offering in countries such as China, because over there the offering was a little bit limited with the model we had before. And two, is a car that is meant that by putting together the sportiness and the comfort and elegance and the price that is, is meant also to bring in our world, in our community, clients from other brands. So this is, I can tell you that, I mean, we are starting to take orders.
Delivery will start in the first semester next year. And I can tell you that we have a decent amount of clients that are joining our community from other brands. And the other question you had, the number two, was about the February Specale. The demand is very strong. We do not have any color or any, I would say, pattern, geographical pattern.
We have people from Middle East as well from Japan or US or Europe that are extremely happy and anxious, let’s say, get a car like this. The comments are about the design. It is completely new. It’s about also the color offering. There are some color like the green Nurburgring, for example, that are making and attracting attention across the globe.
So far, I would say that the model we selected are in line with our expectation in terms of appreciation and also in terms of, let’s say, how the order book is moving.
Monica Vasari, Analyst, Interceptor: Thank you, Benedetto. Very clear. If I may, a follow-up housekeeping. Sudhir asked about the third quarter. The last quarter I’m referring to the last quarter.
Daytona will no longer be there, but we will have the few deliveries of the a f f 80 and much more visible impact from SF90XX and Dobichi Chilinde. Can we say that this could compensate, could offset the lack of the Daytona, Antonio?
Antonio Picapicon, Group CFO, Ferrari: Okay. In terms of mix, we expect the second half to be pretty neutral compared to last year. As a result of the changeover of meaning lower Daytona’s disappearing in Q4 and the initial phase of the FAD. And the ramp up of the XX and lithotripsy.
Monica Vasari, Analyst, Interceptor: Perfect. Thank you very much. Very clear. Thank you.
Antonio Picapicon, Group CFO, Ferrari: Thanks.
Conference Operator: Thank you. Next, we have Thomas Benson from Cowper Chevron. Your line is now open.
Nicoletta Roseau, Head of Investor Relations, Ferrari0: Thank you very much. I have a few questions, I’d like to start with the share of hybrids. In the quarter, it was the lowest in a couple of years. Could you give us some indications of what we should expect for the next six, twelve months on that front? I guess it’s linked with the lower volumes of the speciality versus the regular versions, but I just wanted to hear your thoughts on that.
Second question, you said you’re more confident on the guidance and you remove the 50 bps cautious element of it, but at the same time, you say you’re going to align the pricing to the evolution of tariffs. Could you explain why you don’t keep this 50 bps element of cushion? And lastly, on the bridge, the other line was higher than usual for the second quarter in a row. You explained why. Can you tell us whether we should expect that other line to stay at relatively high level and partly offset the lower mix in the second half of the year?
Thank
Benedetto Vigna, Group CEO, Ferrari: you, Tom. I take the first one. The share of hybrid, you should not take, let’s say, punctual quarter by quarter. What I can tell you is that depends a lot what is offered. Today, if you see what we have in our offering, We have some, let’s say, higher volume cars that are reducing.
And we have get I mean, so far we announced it in this year, three models, two hybrid, six cylinder hybrid, 26, and one eight cylinder turbo. So we are I would say that this demand, the ratio depends also on the volume of this car we want to produce. Clearly, 02/26 Speciale has a lower volume than February. So we may have lighter decrease of the percentage of the hybrid cars because we have more ICE to sell. The confidence and the EBIT, I think, Anton, you can comment in detail.
Sure.
Antonio Picapicon, Group CFO, Ferrari: Hi, Thomas. On this confidence on the guidance and removal of the 50 basis points, the main reason is that we added in my explanation, meaning we expect now industrial costs for the second half of the year lower than we had originally anticipated. That helps us to compensate together obviously with the fact that these are our assumptions on the ranking in Formula One is now different compared to the beginning of the year. Those are the main then within industrial costs, we see there are a number of items going up and down, but the main trend is downward compared to expectations. Other in the EBIT line in the second half, I haven’t done the math, honestly.
I would expect the growth in terms of contribution of new sponsors to be lower compared to what we have seen in the first half, because last year we had already a number of sponsor or new sponsors in, still positive, but we’ll spend to do a lower extent. Better contribution from one commercial I told that it should stay there. So I would expect positive, but not necessarily to the same extent as it was in the first half.
Nicoletta Roseau, Head of Investor Relations, Ferrari0: Thank you. Thank you very much.
Antonio Picapicon, Group CFO, Ferrari: Thank you.
Conference Operator: Thank you. Next we have Florio Sarita from GAM. Your line is now open.
Florio Sarita, Analyst, GAM: Thank you. It’s a question
Stefan Ripman, Analyst, Bernstein: for Benedetto. A very quick question. Can you as you’re you’re aware that the stories about you guys delaying the launch of the second electric vehicle due to perceived lack or lower levels of demand, I find that quite incomprehensible. So given that you’re on the line, can clarify exactly what the position is, please? Thank
Benedetto Vigna, Group CEO, Ferrari: you, Flavio. That’s a good question. I think that we said in 2022 that in Q4 twenty twenty five, we were going to unveil our electric cars, and that’s what we will do. We are keeping delivering on promise. So we are perfectly in line with what we said.
We are trying the car, and the car is proceeding as planned. There is not a hour of delays, single hours of delay on this project. It’s very important. So it’s we never talked about the second car or the third electric cars, so we are very confident. Okay?
And eighth October when there will be the avail of this task of the engineering clause, you will see what’s behind the article and our words. Let’s put it this way. You will see it. So you have to be a little bit more weeks of patience, and then you will see. We are having a nice evening with Antonio and other colleague in a place with a lot of mosquitoes because we have to try the car during the night so the wise people see it and take pictures.
Unfortunately, are a lot of mosquitoes, so it’s not easy. But it’s on track.
Stefan Ripman, Analyst, Bernstein: I feel sorry for you, but thank you.
Benedetto Vigna, Group CEO, Ferrari: Thank you, Raya.
Conference Operator: Thank you. Just a moment for our next question, please. Next, we have Anthony Dick from ODR BHF. Your line is now open.
Nicoletta Roseau, Head of Investor Relations, Ferrari1: Yes. Hi. Thanks for taking the questions. A couple of ones on tariffs. Firstly, I’m just wondering if you saw in the past couple of months any signs of client cancellations or postponing orders and if this has changed at all since we’ve had more clarity on the tariff environment?
And then secondly, more on the kind of modelling and cost side, but could you maybe help clarify how you expect tariff costs to evolve over Q3 and Q4? I know sometimes you batch your orders for different regions, so I’m just wondering if we should expect a large share of volumes at the 27.5% rate in Q3 or if there’s kind of a way to work around that? And maybe just a final one is on the Daytona SP3, I’m just wondering if you could share the shipments that you had in Q3 in Q2, sorry. Thank you.
Benedetto Vigna, Group CEO, Ferrari: Antonio can manage all these questions with all the detail. Sure.
Antonio Picapicon, Group CFO, Ferrari: Starting from the last one, shipment for Q3, we do not provide sorry, Q3 shipment for the Daytona. Q3 shipments overall, we do not provide in advance, as you may imagine. As far as Daytona is concerned, it will be around 40. Tariffs expected in q three and q four. Well, it all depends.
The political agreement, if you if you meant US tariff, the political agreement has been reached. The question that I mentioned is, it’s still uncertain from when it will actually apply, meaning that when that would be an executive order to make tariffs lower compared to today. As of now, we have a certain amount of certain number of cars that have been imported at 27.5%. From then on, we’ll keep on we will start importing at 15%. Third, the the the your first question, cancellations, postponement for a tariff environment.
We do not have the the sense that tariffs have an implication in terms of customers’ behavior. At least not not a clarity in this respect. It’s more perhaps if I had to mention a bit, Benedetto, if you tell a few different, it’s more somewhere the uncertainty that may have created a sort of wait and see in some areas of this world related to the uncertainty. But it’s very difficult to judge because it’s also in the the the order intake very much depends on the cars that we have available for order. And since we are close to the end of life cycles of ever several of our models and the other sold out, we can’t really measure what the overall sentiment in respect of the introduction of a new car, at least for now.
Benedetto Vigna, Group CEO, Ferrari: I think it’s a good point. I think that on one side, have, let’s say, a model, let’s say, portfolio with more or less all the models sold out and the new model joining our offering now. On the other side, we reached the if you look at our order book that is it’s entering 2027, well, and it’s not even considering all the order of the car we launched recently. We have, for example, a record backlog in Asia. If you consider all Asia, have the exclusion of Mainland China, because we account it under different region where we have this really record backlog for this region.
So it’s what Antonio said. We may have some wait and see that is confounded also with the fact that there are not enough model we can sell. So the client the offering is not as rich as it is becoming now with the announcement of the three model we did and also with the announcement of the other model that we will do in the second half of this year. Remember that this year we unveiled six we announced six models. Three have been done.
Three others will be done from now till end of this year.
Nicoletta Roseau, Head of Investor Relations, Ferrari1: That’s okay. Thank you.
Benedetto Vigna, Group CEO, Ferrari: Thank you.
Conference Operator: Thank you. Just a moment for our next question, please. Next, we have Henning Cosman from Barclays. Your line is now open.
Henning Cosman, Analyst, Barclays: Yes. Hi. Thank you. If I could ask a similar related question to Flavio’s earlier, but I’ll try a different way. You also have this 40% electrification ratio for in your 2030 targets from the last CMD.
And I’m just wondering, appreciate you’ve never talked about an actual second electric vehicle, but just if there’s any chance, maybe premature to ask this now, but is there any chance to revisit that in the upcoming CMD? That’s the first question. And Benedetta, just because you mentioned now the remaining launches of the year, we’re quite pleased to see the confidence and the resilience and the pricing of the launches so far. For example, MALTZIE 10% above outgoing Roma, 20% above the original Roma price. Is there any reason to suspect that upcoming launches may not follow that confident and constructive pricing strategy?
And if I can squeeze a final one just to clarify. I think, Antonio, you said there’s forty day toners left or so for which I suppose means you had delivered about 60 or so in Q2. But if you could just give us the exact number as customary, that’d be great. Thank you so much.
Benedetto Vigna, Group CEO, Ferrari: So thank you, Henning. You remember well. 40% of our offering in 02/1930, that’s what we said was gonna be a rhetoric. And it’s a good try, but we will show you in a few weeks at Capital Market Day what what we are aiming to for the future. We will show with you and all other colleagues in the call as well as others all the detail of what this company intends to do for the next five years.
Fact number one. Fact number two, usually, I mean, as we do not talk about the specificity of the model, because it’s important to keep them secret. And also the price is another important factor that we will disclose when it’s time. We will have from now till end of the year, we will have this car launched and then we’ll disclose what is the price also. Because imagine that you have to disclose first the price to our dealers and then we can discuss it publicly.
Otherwise, it would not be fair with some people that are playing an important role in our community. For the Daytona, I think as Yeah. I just said, David
Antonio Picapicon, Group CFO, Ferrari: the first one I can answer, You did the math right. So we’re approximately 60 in the second quarter.
Henning Cosman, Analyst, Barclays: Got it, Ciao. Ciao.
Conference Operator: Thank you. Next, we have Nikolay Kempt from Deutsche Bank. Your line is now open.
Florio Sarita, Analyst, GAM: Yes. Hi, it’s Nikolay from Deutsche Bank. Thank you for taking my questions. Not many left, but coming back to CMD and I don’t want to steal your funder, but we are all very excited. Can you just give us some ideas what we should look for in terms of the announcement?
Benedetto Vigna, Group CEO, Ferrari: What does it mean? Announcement on what? Of the car? No.
Florio Sarita, Analyst, GAM: On everything. On what should we focus on at the event.
Benedetto Vigna, Group CEO, Ferrari: Look, I can tell you that at Capital the Market Day, we’ll disclose you in detail what this company intends to do in terms of marketing strategy, product strategy, financial strategy, the business plan. Mean, expect from us to get the same kind of transparency, clarity that we got, we did, that we shared with all the world three years ago. I think for us, clarity is key also because it’s key for you. It’s clear also internally because we will use this material also to do the deployment of our strategy for all the people in the company. So if I understand well, Nikolay, this is the answer to your question.
So if you can hear
Florio Sarita, Analyst, GAM: Yeah.
Benedetto Vigna, Group CEO, Ferrari: I don’t know what is your You will see the same detail. You will see what we commit to do till end of this decade.
Florio Sarita, Analyst, GAM: Yeah. Sounds good. Yeah. Looking forward to it. Thank you.
Benedetto Vigna, Group CEO, Ferrari: Thank you.
Conference Operator: Thank you. Next comes from Jose Ameddi from Jose Ameddi. Your line is now open.
Nicoletta Roseau, Head of Investor Relations, Ferrari2: Thank you so much. Jose Soumedi from JPMorgan. Thank you so much. Antonio, can you please comment on the second half? When you look at the balance between mix price and then industrial cost, R and D and SG and A, do you think there’s a chance that the balance of both categories are going to be a bit more in the positive territory or more neutral?
I know you commented on each of the different buckets for Q3, Q4, but just wondering for the second half, how should we think about that? And then second, Baretto, probably also a question for the Capital Markets Day. But can you comment on CapEx a little bit where we stand on the cycle and medium term? How do we think about CapEx, especially in the light of all the special projects you have, right? You have a lot of, I think, super interesting projects like Telectrica, etcetera.
Where do we start on CapEx? How do see these two years out? Thank you.
Benedetto Vigna, Group CEO, Ferrari: So I’ll take the second one and Antonio. So you may remember that many times I said that one important thing is for a company to be innovative and sustainable is to define clearly the boundary within which innovation must happen. Two, to keep on delivering what the company is committing to do in front of everyone. So what I can tell you that what we told you three years ago and the entire world, we are fully on track with that. I believe that the best source of innovation in the company is to define the boundary condition and then the people will find a solution.
So if you want, yes, we are in line what we said we were going to do with the CapEx. So there is no deviation. You will see more detail during the Capital Market Day and that we intend to proceed for the future. But as of now, I can tell you that we are on track with everything, be committed to all the shareholder community on all the fronts, CapEx included.
Antonio Picapicon, Group CFO, Ferrari: Yes. And as far as your first question, I answer on a yearly basis. We expect mix and price to contribute positively to the development of the earnings for the year. Industrial costs and R and D are generally a negative. But as I said before, because of a lighter second half of the year, I expect it to be lower negative than we originally anticipated, but for the impact of tariffs, of course.
SG and A, I expect it to be a negative, and this is for a number of reasons, including the fact that this year is full of events, of launches of cars, and we keep on working on the infrastructure of the company. And I think I mentioned it all.
Nicoletta Roseau, Head of Investor Relations, Ferrari1: Wonderful. Thank you.
Antonio Picapicon, Group CFO, Ferrari: Thank you.
Conference Operator: Thank you. Our last question comes from Tom from RBC. Your line is now open.
Nicoletta Roseau, Head of Investor Relations, Ferrari3: Hey, Tom Narayan, RBC. Thanks for taking the questions. I wanted just to clarify, I think you said this, sorry, missed it. Daytona’s sorry, did you say it was 40 in Q2 or 60? Then next question was it’s really a response to Stephen’s question.
I wonder if this is impacting the stock price right now because I’m getting questions on it. Did you mention something about residual values being contemplated in The U. S? Maybe you could just put that to bed. It sounds like that’s not what you’re saying.
And then third, on the guidance, Antonio, I know you said to expect mix in H2 twenty twenty five to be similar to H2 twenty twenty four. I know this is just a mix comment. If I just use H2 twenty twenty four numbers, it feels like it implies 25 numbers close to the guidance floor. Just curious how you think of the order of magnitude of what greater than means. Thanks.
Benedetto Vigna, Group CEO, Ferrari: Antonio can go through this question.
Antonio Picapicon, Group CFO, Ferrari: Yeah. So first, maybe just to take out the points on the table. On the stock price, we haven’t discussed anything in respect to residual value in The US. I don’t know what you were referring to, at least not in the call. Okay.
And if there is any doubt in this respect, please ask. I’d go through the other two questions. Monitor, sorry if I spelled it wrongly, but basically, in Q2, there were 60, six-zero. And in Q3, there would be approximately 40, four-zero. Mix in H2 twenty five versus H2 twenty four.
I said they’re rather neutral. Honestly, I don’t wanna go into the details of how much greater than compared to. Okay. Let’s see the sense of the I
Benedetto Vigna, Group CEO, Ferrari: think for the first question, no, the second question, the third question, when was it? The residual value for the second one. It was a ring. Correct me, Tom, to my comment when I said that UK and US. There is UK.
Yeah. UK that was we said already was a little bit under pressure and we took some commercial action like to reduce the number of products we’re putting over there. And then I said that in US, we have some model that are a little bit under pressure for which we took some commercial action that are showing some results. So this is what I was saying, Tom. It was not said in my speech, but it was said in the first question to Stephen.
Nicoletta Roseau, Head of Investor Relations, Ferrari3: Okay. So there’s nothing to be concerned about for The
Benedetto Vigna, Group CEO, Ferrari: We do not have any specific concern about this. What I can tell you is that we for example, we said in a couple in a few conference call ago that for some model, the hybrid, let’s say the aging of the battery was seen as a kind of concern. And this is why we put in place a kind of warranty scheme in terms of the battery that is having an adoption depending on the state from 15% to 20%. So basically, this was a concern that over the time the battery can expires. And then we put in place since September that is having a kind of warranty that is having a good attraction.
Because today, we are around 15%, 20%, depending on the state, while for other usual guarantee, we are below 10%.
Antonio Picapicon, Group CFO, Ferrari: Thank you.
Conference Operator: Thank you. Thank you for all the questions. This concludes the Q and A session. And I will now turn the conference back to Benedetto Vigna, CEO of Ferrari, for closing remarks.
Benedetto Vigna, Group CEO, Ferrari: So thank you for your time today and also for all your questions and for trials to get more information, but you have to be here a little bit more till the Capital Market Day. We are really looking forward to see you here back here in Maranello for the Capital Market Day. It will be October 9, so a few weeks more. So the next appointment will be that one. And then I wish you a good morning, good afternoon, wherever you are on this globe.
And thanks again for your question, for your attention. Thanks from all the people here in Maranello. And if you have a rest, have a good rest in August. Thank you.
Conference Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
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