Ferrari N.V. (NYSE:RACE) stock rose on Tuesday after the luxury auto company reported its fourth-quarter results and issued confident guidance.
The Italian car manufacturer reported quarterly sales growth of 4.0% year-over-year to $2.098 billion (1.80 billion euros), beating the analyst consensus estimate of $2.020 billion.
EPS of $2.49 (2.14 euros) beat the analyst consensus estimate of $2.44.
Earnings Breakdown
Revenue from cars and spare parts rose 1% Y/Y, and Sponsorship, commercial, and brand revenues increased by 17%.
Total shipments fell by 5.2% Y/Y to 3,152 units.
Adjusted EBITDA rose 8.9% Y/Y to 700 million euros.
The margin expanded by 181 basis points Y/Y to 38.85%.
Adjusted net profit for the quarter decreased 1.3% to 381 million euros.
Operating cash flow totaled 519 million euros, with a free cash flow of 269 million euros.
As of December 31, 2025, the company’s net industrial debt was 32 million euros, compared to 180 million euros as of December 31, 2024.
Ferrari held 1.47 billion euros in cash and equivalents as of December 31, 2025.
Benedetto Vigna, CEO of Ferrari, highlighted Ferrari’s impressive financial performance was driven by product mix, personalizations, and sponsorships.
Vigna noted that demand for Ferrari remains ‘solid’ and is managed with discipline in every market, reflecting the company’s exclusivity model, with the order book extending until the end of 2027.
Despite a 5.2% drop in total shipments during the fourth quarter, Ferrari emphasized that the decline was due to a self-imposed cap on sales to China and higher tariffs, rather than weaker demand, Bloomberg reported on Tuesday.
While Ferrari has reduced its electric vehicle ambitions, it is still pushing forward with its first electric supercar, the Luce, designed with Jony Ive’s firm.
Ferrari unveiled its first-ever electric supercar, designed by former Apple Inc. (NASDAQ:AAPL) design head Jony Ive.
The Ferrari Luce features four electric motors, delivering over 1,000 horsepower. With a 122 kWh battery, it boasts a 0-60 mph time of just 2.5 seconds, a 330-mile range, and weighs 5,100 lbs.
2026 Outlook
The company is expected to outperform Street estimates in fiscal 2026, according to Benzinga Pro data. Ferrari’s fiscal 2026 EPS is projected to exceed $11.00, topping the current consensus estimate of $10.92. Revenue is also forecast to come in above $8.73 billion, versus analyst expectations of $8.57 billion.
RACE Price Action: Ferrari shares were up 8.63% at $365.14 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo by William’s photo via Shutterstock
Recent Comments