Ferrari Q3 Earnings Call Highlights

Key Points

• Ferrari reported Q3 revenue of €1.29 billion, EBIT above €560 million and industrial free cash flow above €565 million. It raised full-year guidance, citing personalization, special-series models, improved currency conditions and lower Formula 1 costs.
• Personalization exceeded expectations, accounting for more than 21% of cars and spare-parts revenue, supported by customer demand for materials, paint and other options. Ferrari said carbon-fiber supply constraints are no longer limiting growth.
• The model changeover continued as planned, with deliveries intentionally lower during the transition; the order book now extends into 2028. Initial Luce deliveries are expected in Q4, and its 2027 production is fully allocated.

Ferrari NYSE: RACE reported third-quarter 2026 results marked by stronger product mix, rising personalization revenue and robust free cash flow, while management raised its full-year outlook.

Group CEO Benedetto Vigna said the company generated revenue of €1.29 billion during the quarter, EBIT of more than €560 million and industrial free cash flow exceeding €565 million. He said Ferrari’s performance reflected “strong product mix and a solid trend in personalizations,” alongside continued execution of the company’s long-term business plan.

Chief Financial Officer Antonio Picca Piccon said third-quarter net revenue rose nearly 10% at constant currency, or 7% including foreign-exchange headwinds principally tied to the U.S. dollar and Japanese yen. Revenue from cars and spare parts increased on a richer product mix and higher levels of personalization.

Personalization Exceeds Expectations

Personalization represented more than 21% of revenue from cars and spare parts in the quarter, according to Picca Piccon. The 296 Speciale family was a particularly important contributor, while demand for carbon-fiber components and paint options continued to support growth.

Management said personalization had exceeded its initial expectations for the year. Ferrari began 2026 expecting a personalization rate of about 20%, but expects the fourth quarter to continue at levels consistent with recent months. The company also said a concentration of special-series models this year has supported the elevated mix.

Vigna said Ferrari’s personalization revenue is broadly divided among materials selected by customers, exterior choices including paint and color, and cabin selections. He added that the company’s new paint shop is nearing completion and will support its personalization capabilities.

On demand, Vigna said Ferrari continues to see healthy interest across models and geographies, including for both internal-combustion and hybrid vehicles. He also said supply constraints for carbon-fiber components that had previously affected personalization are no longer viewed as a limiting factor after Ferrari secured supply arrangements.

Model Changeover Continues

Ferrari said its model changeover progressed in line with plan during the third quarter. The 849 Testarossa and 296 Speciale Aperta continued ramping up, and the company began initial deliveries of the 849 Testarossa Spider.

The Amalfi and 296 Speciale Coupé increased their contribution and entered global distribution, joining the 12Cilindri family and Purosangue. Deliveries of the F80 also advanced as planned, while the 296 GTS, Roma Spider and SF90 XX family reached the ends of their respective life cycles.

Picca Piccon said deliveries were intentionally planned somewhat lower during the quarter to enable a smooth completion of the model transition. In response to an analyst question, he said F80 deliveries increased only slightly from the prior quarter and remained in the range of roughly 50 units.

Vigna said fourth-quarter shipments should increase year over year, aided by the model-changeover completion and comparison with the prior-year period. He attributed lower shipments in mainland China, Hong Kong and Taiwan to the model changeover, rather than a separate demand issue.

The company’s order book now extends into 2028, Vigna said. Ferrari also expects to introduce two additional models in the physical world before the end of 2026.

Luce Deliveries and Brand Activities

Ferrari said initial deliveries of the Luce are expected in the fourth quarter, while 2027 production has been fully allocated. International media test drives are scheduled for the first quarter of 2027, followed by customer test drives.

Vigna said the Luce has attracted a broad mix of customers by geography and age, though he did not disclose the split between existing and new Ferrari buyers. He said prospective buyers placing orders now would need to wait about a year for delivery.

The company also highlighted its customer-engagement initiatives, including driving events, the European Cavalcade and the Tributo Universo Ferrari event in India. Ferrari said the first Luce was auctioned for $40 million at Pebble Beach, with proceeds designated for an educational project in the U.S. and Maranello.

Ferrari continued its dealership-network corporate-identity rollout, with recent openings in Zug, Switzerland; Pasadena, California; and Riyadh, Saudi Arabia. Vigna also said the company is preparing to open a flagship lifestyle store in New York after opening in London during the first quarter of 2026.

Profitability, Cash Flow and Outlook

Picca Piccon said EBIT growth was driven primarily by mix and pricing, including contributions from the F80, 849 Testarossa and 12Cilindri families. Higher spare-parts revenue also helped, while higher depreciation, amortization and marketing expense only partially offset the gains.

Both EBIT and EBITDA margins increased from a year earlier despite currency pressure, he said. Industrial free cash flow benefited from higher profitability and favorable working-capital movements, including advance collections from customers. Capital expenditures were mainly directed toward product and infrastructure development.

Ferrari ended the quarter with net cash of €219 million, even after share repurchases during the period.

The company raised its full-year guidance, citing expectations for continued strength in personalization, a higher concentration of special versions in the fourth quarter, improved U.S. dollar-to-euro conditions relative to the third quarter and lower Formula 1 costs based on its current second-place championship position. Management did not provide the updated numerical guidance during the call.

Ferrari said it continues to use a 12-month rolling foreign-exchange hedging policy and aims to be approximately 70% hedged over that period. Picca Piccon said the company expected full-year foreign-exchange effects of roughly €150 million to €200 million, compared with a prior expectation of around €200 million.

About Ferrari (NYSE:RACE)

Ferrari N.V. is an Italian luxury automotive company that designs, develops, manufactures and sells high-performance sports cars. Its vehicle portfolio includes grand touring models, mid- and rear-engine sports cars, limited-edition special series and high-performance supercars. Ferrari also offers extensive personalization options, allowing customers to tailor vehicle specifications, materials and finishes.

The company traces its origins to 1939, when Enzo Ferrari established Auto Avio Costruzioni, and it produced its first Ferrari-badged car in 1947.

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