Ferrari Q2 Earnings Call Highlights

Key Points

• Strong Q2 performance: Ferrari reported €1.94 billion in revenue, €755 million in EBITDA and €275 million in industrial free cash flow. Results were driven by a richer model mix, pricing and personalization, which exceeded 20% of cars and spare-parts revenue.
• Demand remains robust: Ferrari’s order book extends through all of 2027, with several models already sold out. The company said lower U.S. deliveries reflected model transitions and longer production times for personalized vehicles rather than weak demand.
• Growth and outlook: Ferrari raised its 2026 guidance and is expanding its lineup with the electric Luce and sold-out limited-edition 12Cilindri Manuale. The company expects higher selling, general and administrative, research and development, and depreciation costs in the second half.

Ferrari NYSE: RACE reported higher second-quarter revenue, profitability and industrial free cash flow, supported by a richer vehicle mix, stronger personalization activity and increased racing-related revenue. The company also said demand remained healthy across regions, with its order book covering the full 2027 calendar year.

Chief Executive Officer Benedetto Vigna said Ferrari generated quarterly revenue of €1.94 billion, EBITDA of €755 million and industrial free cash flow of €275 million. He said the results enabled Ferrari to raise its full-year guidance, citing better-than-expected personalization revenue and a more favorable foreign-exchange environment.

“Ferrari continues to execute its plan with focus, discipline, and consistency,” Vigna said, emphasizing the company’s approach of combining heritage with innovation while maintaining scarcity and exclusivity.

Personalization and Product Mix Lift Results

Chief Financial Officer Antonio Picca Piccon said second-quarter net revenue rose 11% at constant currency and 8% including currency effects, which were mainly tied to the U.S. dollar and Japanese yen. Revenue from cars and spare parts benefited from the mix of models delivered and from higher personalization.

Personalization represented more than 20% of cars and spare-parts revenue during the quarter, exceeding Ferrari’s expectations. Picca Piccon said the trend was particularly significant for the 296 Speciale family, while carbon-fiber components, paint, wheels and special leathers contributed to higher customer spending across the lineup.

“We see the trend of personalization improving across the board,” Picca Piccon said during the question-and-answer session, adding that the level of personalization remained higher than Ferrari had expected.

Ferrari reported an EBIT margin of 31.2%, slightly above the prior-year period, and an EBITDA margin of 39%. The EBITDA margin was slightly lower year over year, primarily due to the company’s assumptions for a better Formula 1 ranking than last year, which carries related costs.

The company said its EBIT growth was driven by strong mix and pricing, including increased contributions from the F80 and 12Cilindri families. Those gains were partially offset by deliberately lower volumes during the model transition period, higher industrial and marketing costs, and Formula 1-related expenses.

• The Amalfi, 849 Testarossa and 296 Speciale families increased their contribution as production ramped up.
• Deliveries of the 12Cilindri, 12Cilindri Spider and Purosangue continued steadily.
• F80 deliveries rose only modestly, in line with Ferrari’s plans.
• 296 GTS, Roma Spider and SF90 XX deliveries declined as those models moved toward phase-out or the conclusion of limited-series production.

EMEA recorded the strongest regional growth in the quarter. Ferrari said deliveries of newer models to more distant markets would ramp progressively in coming months. Vigna said lower U.S. shipments did not reflect demand or supply-chain issues, but rather model changeovers and the increased manufacturing time associated with highly personalized vehicles.

Order Book Extends Through 2027

Ferrari said its order book now covers the entire 2027 year. Vigna said several models, including the 296 Speciale and 12Cilindri families, were already sold out for their respective production runs.

The company did not provide model-specific order figures or volume forecasts. Vigna said Ferrari’s production and commercial decisions continue to be guided by scarcity and exclusivity rather than shipment volumes.

Picca Piccon said the share of Special Series deliveries was higher this year than in recent periods because of product life cycles, and he did not expect a significant change in the second half. He also said average selling prices in the second half should be broadly similar to the first half, potentially slightly better, reflecting personalization penetration.

Electric Luce and Manuale Add to Portfolio

During the quarter, Ferrari unveiled the Ferrari Luce, its first electric model. Vigna described the five-seat vehicle as an addition to, rather than a replacement for, the company’s existing range of combustion-engine and hybrid vehicles.

The Luce incorporates more than 60 new patents covering electric propulsion, vehicle dynamics and systems integration, according to Vigna. He said the model uses traditional paddle shifting for torque-shift engagement and was designed to retain a Ferrari driving experience.

Two months after its Rome premiere, Vigna said Luce orders were arriving in line with Ferrari’s plans. Initial orders have come from repeat customers as well as clients new to the Ferrari brand. He said the company had targeted prospective customers familiar with electric vehicles, but added that Ferrari had not identified a clear geographic or demographic pattern among new Luce buyers.

Ferrari also introduced the limited-edition 12Cilindri Manuale on July 3. The model is limited to 1,499 units, all of which have been allocated to clients. It marks the return of a manual transmission following the 599 GTB Fiorano in 2006, using an in-house-developed and patented manual-by-wire system inspired by technology from Ferrari’s Hypersail racing project.

Vigna said Ferrari plans to unveil two additional models before the end of the year, without providing further details.

Outlook Includes Higher Costs in Second Half

Ferrari raised its 2026 guidance based on personalization trends and foreign exchange. Picca Piccon said the company’s updated assumptions include personalization accounting for more than 20% of cars and spare-parts revenue, a U.S. dollar-to-euro exchange rate of about 1.16, and the benefit of additional hedges.

He said Ferrari expects selling, general and administrative expenses and research and development spending to be higher in the second half than in the first half. Depreciation and amortization is also expected to increase progressively in the second half, with full-year D&A expected to exceed €700 million.

At the end of June, Ferrari had net industrial debt of €131 million, reflecting its May dividend payment and share purchases during the quarter. Capital expenditures were focused primarily on product and infrastructure development, including construction of a new paint shop.

About Ferrari (NYSE:RACE)

Ferrari N.V. NYSE: RACE is an Italian luxury sports car manufacturer best known for designing, engineering and selling high-performance automobiles under the Ferrari marque. The company's core business centers on the development and manufacture of premium sports cars and limited-series models, complemented by personalization and bespoke engineering services for high-net-worth clients. Ferrari also generates revenue from brand licensing, the sale of spare parts and accessories, aftersales services, and curated client experiences such as driving programs and factory visits.

Founded from the automotive activities of Enzo Ferrari, the first cars bearing the Ferrari name emerged in the late 1940s; the brand has since built a reputation for performance, craftsmanship and exclusivity.

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