Ferrari N.V. Q3 FY2025 earnings call

Capital Market Day: - Shared ambitious financial goals for end of decade: EUR 9B revenues, 40% EBITDA margin, 30% EBIT margin. - Recalibrated powertrain offering: from 20% ICE, 40% hybrid, 40% electric in 2022 to 40% ICE, 40% hybrid, 20% electric in 2025, driven by market dynamics and client centricity. - Launches: Ferrari Amalfi, 849 Testarossa, start of Ferrari Elettrica reveal. ### Q3 '25 Results: - Total revenues ~EUR 1.8B, +7.4% YOY; EBIT >EUR 500M; industrial free cash flow EUR 365M. - Model changeover: Phased out SF90 family, Roma, and 296 family; new models like 849 Testarossa family, Amalfi, and 296 special series to replace them.

Total revenues for Q3 '25 reached approximately EUR 1.8 billion, a 7.4% year-over-year growth with flat deliveries. EBIT was over EUR 500 million, and industrial free cash flow was EUR 365 million. In terms of product segments, shipments were driven by the 296 GTS, Purosangue, 12Cilindri family, Roma Spider, and SF90 XX family. The 296 GTB was approaching the end of its lifecycle, SF90 Spider was phased out, and Daytona SP3 deliveries were lower. At constant currency, net revenue grew 9.3% year-over-year, with cars and spare parts up due to a richer product mix and personalizations (accounting for ~20% of total revenues from cars and spare parts). Sponsorship, commercial, and brand also increased.

2025: - Revised guidance upward. Q4 expected to have lower deliveries YOY, positive product mix but sequentially lighter, higher SG&A and racing R&D expenses. ### 2026 and beyond: - F80 rollout gradual, with production ramping up over a couple of quarters; 2026 profitability expected to be back-end loaded, aiming for smooth and linear expansion of profitability.

- Macroeconomic uncertainty and volatility. - Impact of incremental U.S. import tariffs and foreign exchange headwinds. - Potential challenges with dealer training for hybrid warranty explanation.

Q: Michael Binetti asked about mix impact in the second half and personalization moderation.

A: Antonio Piccon said mix impact was slightly better than anticipated due to strong personalization, and personalization penetration is planned around 19% long-term.

Q: Flavio Cereda asked about pricing power.

A: Benedetto Vigna said pricing power continues as innovation will keep delighting clients, so no weakening expected.

Q: Stephen Reitman asked about Amalfi demand and hybrid warranty.

A: Benedetto Vigna said Amalfi is proceeding well, with over 40% new clients, and hybrid warranty is over 20% but some dealers need retraining.

Q: Robert Krankowski asked about U.S. market and Q3 to Q4 bridge.

A: Antonio Piccon said U.S. business proceeds as usual, Q3 was stronger due to higher personalization than expected and lower cost base.

Q: Tom Narayan asked about Q4 bridge and Elettrica margin.

A: Antonio Piccon explained Q4 lower deliveries, positive mix but lighter, higher SG&A and racing R&D; Benedetto Vigna said Elettrica innovation will maintain uniqueness and pricing power.

Q: James Grzinic asked about innovation and pricing power.

A: Benedetto Vigna said innovation is key to maintaining pricing power, as Ferrari doesn't increase prices without adding innovation.

Q: José Asumendi asked about margin stability.

A: Benedetto Vigna said uniqueness of innovation ensures long-term sustainability.

Q: Michael Tyndall asked about F1 budget and FX on order backlog.

A: Antonio Piccon said F1 budget increase affects costs, and FX on order backlog can be addressed with 90-day pricing anticipation country-by-country.