Quality over quantity: Ferrari drives profits with just 1% shipment growth in Q1 2025

Overview

Ferrari N.V. delivered a strong start to the year, recording double-digit growth across key metrics with only a marginal increase in unit shipments.

CEO Benedetto Vigna stated: “Another year is off to a great start. In the first quarter of 2025, with very few incremental shipments year on year, all key metrics recorded double-digit growth, underscoring a strong profitability driven by our product mix and continued demand for personalizations. This confirms – once again – our strategy of ‘quality of revenues over quantity’. We continue to enrich our product offering – in line with our plans – with six new models this year, which include the newly launched 296 Speciale, 296 Speciale A and the much-anticipated Ferrari elettrica through a unique and innovative unveiling. We are very excited about what lies ahead.”

Q1 2025 vs. Q1 2024:

Shipments recorded a value of 3.593 units (+1% YoY), a slight growth driven by the Roma Spider, 296 GTS, SF90 XX family, and Purosangue, offset by lifecycle transitions.
- In Q1 2025, EMEA was up 128 units, Americas increased by 25 units, Mainland China, Hong Kong and Taiwan decreased by 80 units and Rest of APAC decreased by 40 units.
Net revenues increased to €1.79bn (+13% YoY), with higher contribution from premium product mix, personalizations, and stronger sponsorship/commercial revenue.
- Revenues from Cars and spare parts were €1.54bn (+11% YoY), thanks to a richer product and country mix, as well as increased personalizations.
- Sponsorship, commercial and brand revenues reached €191m (+32% YoY), mainly attributable to new sponsorships and lifestyle activities, as well as higher commercial revenues linked to the better prior year Formula 1 ranking.
- Other revenues recorded a slight increase to €64m (+10% YoY), with higher revenues from financial services, partially offset by the decreased contribution from the Maserati contract.
Operating profit (EBIT) rose to €542m (+23% YoY), with margin expanded to 30.3% (+240 bps YoY), supported by richer product mix and stable industrial costs.
EBITDA reached to €693m (+15% YoY), with an EBITDA margin of 38.7% (+50 bps YoY).
Net profit also increased to €412m (+17% YoY), with diluted EPS of €2.30 (+18% YoY).
Industrial free cash flow was very strong at €620m (+93% YoY), driven by the increased EBITDA from industrial activities and a positive change in working capital, provisions and other for €163m, which also reflecting the initial collection of the F80 advances, partially offset by capital expenditures of €224m (+15% YoY).
R&D spend totaled €270m (+6% YoY), with a continued focus on innovation and electrification.
Net industrial debt was reduced to just €49m (-73% YoY), supported by a strong cash position and controlled CapEx.
Ferrari repurchased €424m in shares during Q1 (including the Exor ABO tranche) and closed the quarter with €2.47bn (+8% YoY) in liquidity.

Ferrari reaffirmed its full-year 2025 guidance, projecting net revenues above €7.0bn, adjusted EBITDA of at least €2.68bn (a margin of ≥38.3%), and adjusted EBIT of no less than €2.03bn. The company also expects adjusted EPS to exceed €8.60 and industrial free cash flow to surpass €1.20bn, supported by a strong product mix and personalization strategy. While management acknowledged potential headwinds from proposed U.S. import tariffs on EU cars, estimated to impact margins by around 50 basis points, these effects are expected to be partially offset through commercial policy adjustments and strategic pricing actions.

The quarterly results report on May 6 brought an appreciation of the stock price for RACE shares, which increased by approximately +1.65%, which consolidates the increase in the last trading week by approximately +4.65%. Also, despite the economic uncertainties in the market that directly targeted the automotive sector, the price of RACE shares has increased since the beginning of the year by almost +14%.

The chart below shows a clear recovery from the recent lows, with a sustained increase that took the price above the two important moving averages, 50-day and 200-day, respectively. Exceeding both moving averages, accompanied by relatively high volume, is a positive signal, suggesting a change in the short-term trend towards the medium. In the current session, the price closed at a new local high and managed to overcome a previous resistance area. This is supported by the RSI indicator (65.62), which is close to the overbought zone, indicating positive momentum, but also the possibility of consolidation in the following sessions.