Ferrari NV Q1 FY2025 earnings call

Benedetto Vigna mentioned that despite the uncertain macroeconomic environment with geopolitical tensions and market volatility, Ferrari is executing its business plan with discipline. In Q1, key financial results were strong with total revenues, EBITDA, and industrial free cash flow all showing positive figures. The product offering is evolving, with a new paint shop proceeding as planned, wins in the World Endurance Championships, and the launch of new lifestyle collectibles. The order book on current models covers 2026, and the new 296 GTB and 296 GTS special versions have been well-received. Antonio Picca Piccon detailed the Q1 results, noting double-digit revenue and profitability growth, shipments up, and drivers like product mix and personalization. He also discussed Q1 deliveries, net profit, industrial free cash flow, and the impact of factors such as tariffs and brand investments.

Total revenues for Ferrari in Q1 2025 reached approximately €1.8 billion. EBITDA was close to €700 million. Industrial free cash flow generation in the quarter was more than €600 million. Deliveries increased by 33 units, driven by models such as the Ferrari Roma Spider, 296 GTS, SF90 XF family, and Purosangue. Net profit reached €412 million, with a diluted EPS of €2.3, which was up 17.9% compared to the prior year. Revenues and profitability grew by double digits, shipments were slightly higher than the previous year, and product mix and personalization were the main drivers of growth.

Ferrari confirmed the 2025 guidance but highlighted a 50 basis point reduction risk on EBITDA and EBITDA margins due to the update of commercial policy for the U.S. market following higher import tariffs. The company remains vigilant of the global business environment, including foreign exchange rate changes. It projects the first half of 2025 to be stronger than the second half, taking into account product mix, racing revenues, lifestyle activities, brand investments, and racing expenses.

Risks include the uncertain macroeconomic environment with ongoing geopolitical tensions and market volatility. There is also the risk from the recently introduced higher tariffs on EU cars imported into the U.S., which led to a 50 basis point EBITDA - EBIT margin risk as addressed by updating the commercial policy.

Q: Susy Tibaldi asked about differences in trends between new customers, existing customers, and top collectors.

A: Benedetto Vigna said they don't see any difference in trend between new clients, collectors, and repeaters, and are vigilant but not seeing specific patterns.

Q: Henning Cosman asked about seasonality between Q1 and Q2 and impact of tariffs on U.S.

A: Benedetto Vigna said no specific impact seen on tariffs, and Antonio Picca Piccon said Q2 is lighter than Q1.

Q: Stephen Reitman asked about personalization trends and sponsorship.

A: Benedetto Vigna and Antonio Picca Piccon discussed personalization trends in line with previous and sponsorship details.

Q: Michael Binetti asked about Daytona shipments and EBITDA margin scenario and EV launch.

A: Antonio Picca Piccon said 77 Daytona shipped in Q1, and Benedetto Vigna talked about EV as a masterpiece with in-house technology.

Q: Unidentified Analyst asked about tariffs impact on guidance.

A: Antonio Picca Piccon said it's a risk with opportunities to offset.

Q: John Murphy asked about 12Cilindri consumer reception and tariffs.

A: Benedetto Vigna said good reception across geographies.

Q: Monica Bosio asked about FAT initial collection, residual values, and personalization.

A: Antonio Picca Piccon said FAT collection has a big bulk in Q1 and lower in Q4, residual values could be affected by pricing, and personalization price increases are for the car overall.

Q: Thomas Besson asked about non-car revenues, free cash flow, tax rate, and CapEx.

A: Antonio Picca Piccon talked about non-car revenues, free cash flow guidance, tax rate around 22%, and CapEx between 900 - 950.

Q: Tom Narayan asked about EV powertrain split and Purosangue demographics.

A: Benedetto Vigna said wait for October update on powertrain split and talked about Purosangue demographics.

Q: Martino de Ambroggi asked about China region size, hybrid warranty, and price impact.

A: Benedetto Vigna talked about China region and hybrid warranty, and Antonio Picca Piccon didn't provide granularity on price impact.