Ferrari Beats Q1, Holds 2025 Outlook But Warns Tariffs Could Squeeze Profit Margins

Ferrari N.V. RACE stock dropped Tuesday after the luxury auto company reported its first-quarter results and guidance.

The Italian car manufacturer reported quarterly sales growth of 13.0% year over year to $1.88 billion (1.79 billion euros), beating the analyst consensus estimate of $1.77 billion.

Also Read: Automakers Are Struggling With Tariffs And EV Competition, Say Analysts

Here’s a breakdown of the report:

• EPS of $2.42 (2.30 euros) beat the analyst consensus estimate of $2.32.
• Revenue from cars and spare parts rose 11.1% year-over-year, and Sponsorship, commercial, and brand revenues increased by 32.1%. Total shipments grew by 1% year over year to 3,593 units.
• Adjusted EBITDA rose 14.5% Y/Y to 693 million euros, and the margin expanded 52 basis points Y/Y to 38.7%.
• Adjusted net profit for the quarter increased 17.0% to 412 million euros.
• Operating cash flow totaled 847 million euros with a 623 million euros free cash flow.
• As of March 31, 2025, the company’s net industrial debt was 49 million euros, compared to 180 million euros as of December 31, 2024.
• Ferrari held 1.92 billion euros in cash and equivalents as of March 31, 2025.

CEO Benedetto Vigna said the company remains on track with plans for 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.

Outlook: Ferrari reiterated fiscal 2025 net revenues of greater than 7.0 billion euros ($7.36 billion), compared to an estimate of $7.20 billion estimate.

The company maintained fiscal 2025 adjusted EPS of greater than or equal to 8.60 euros ($9.04) versus an estimated $8.97.

Adjusted EBITDA will be greater than 2.68 billion euros, with a margin greater than 38.3%. However, the margin is subject to a potential risk of 50 basis points reduction in relation to the update of the commercial policy following the introduction of import tariffs on EU cars into the US.

In March, Ferrari shared plans to raise prices by up to 10% on specific models due to U.S. auto tariffs, which affect models like Purosangue and F80.

Price Action: Ferrari stock is down 1.07% at $461.46 premarket at the last check on Tuesday.

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