Ferrari Boosts Net Earnings by 17% to $412 Million, Adjusts Profit Projections Due to Tariff Uncertainties
Throttling Up: Ferrari's Q1 Soars, Eyes 2025 Victory, but Watch for Tariff Troubles
Kickin' it up a notch, Ferrari posts a 17% jump in first-quarter net profit, leaving the competition in the dust.
Ferrari’s financial performance in Q1 of 2025 has put competitors in the rearview mirror, with the Italian powerhouse raking in a whopping 412 million euros net profit! This impressive figure, revealed in the company’s yet-to-be-released report, has the auto world buzzing. But beware, U.S. tariffs on foreign automobile imports could sour the triumph.
Here's the dirt:
- Operating profit (EBIT): Scheming its way to a 22.7% increase compared to Q1 of 2024, Ferrari's EBIT soared to 542 million euros.
- Gross operating result (EBITDA): A formidable force, the EBITDA climbed an impressive 14.6% to 693 million euros.
- Vehicle sales revenues: Speeding ahead at a brisk 13% clip, revenues from Ferrari's exquisite sports cars reached 1.791 million euros.
- Units Delivered: A slight edge over 2024, Ferrari delivered 3.593 vehicles in Q1 of 2025.
"With all key metrics displaying double-digit growth, our strategy of prioritizing quality over quantity has proven to be a winner. Our profitability is solid, thanks to our impressive product lineup and increased demand for personalization," Ferrari’s CEO, Benedetto Vigna, proclaimed with a cheer.
Shifting gears from Q1 to the year’s expectations:
- Adjusted Operating Profit: Ferrari anticipates a 7% increase in adjusted operating profit, reaching a staggering 2.030 million euros annually[4].
- Adjusted diluted earnings per share: Ferrari’s shares will see a 2% bump, reaching an adjusted diluted earnings per share of 8.60 euros.
- Industrial Free Cash Flow: The free cash flow is set to swell by an impressive 17%, to 1.200 million euros.
However, the Ferrari’s estimate for 2025 comes with a caveat: the potential risk of a 50 basis point reduction in profitability margins if EU automobile import tariffs were introduced in the United States.
The company is aiming to reach over 7.000 million euros in total revenues, marking a 5% increase compared to the previous year[4]. Additionally, Ferrari expects to maintain an adjusted EBITDA margin of between 38.3% and have an adjusted EBITDA of 2.800 million euros[4].
Lifestyle and sponsorship revenues soared 32.1% in Q1 of 2025, largely due to new partnerships and increased commercial revenue derived from Formula 1’s better ranking in the previous year[4].
Ferrari also revealed plans for an expansion of its product offerings in 2025, including the launch of its first 100% electric vehicle, dubbed ‘Elettrica’.
Keep your eyes peeled for more fireworks from the Prancing Horse as it charges toward a strong 2025. Just don't forget to watch for those pesky tariffs!
concerned topics: Ferrari, Benedetto Vigna, Maranello, Formula 1, Net profit, Sports cars, Italy, Elettrica, Sponsorship revenues, Tariffs, EUROPAPRESS
- In line with Ferrari's impressive financial growth, the CEO, Benedetto Vigna, announced that the EBITDA (Gross operating result) climbed an impressive 14.6% to 693 million euros, demonstrating the company's profitability in sports cars and other offerings.
- Likewise, the French luxury and sports car brand recorded a 22.7% increase in EBIT (Operating Profit) compared to Q1 of 2024, a testament to the popularity of their product lineup and the demand for personalization.
- Despite the promising outlook for 2025, Ferrari has signaled potential concerns about profitability margins if EU automobile import tariffs were introduced in the United States, a risk that could dampen the company's rates of growth.
