Ferrari Q4 Earnings Top Estimates, CEO Highlights 'Robust Growth' In 2025

Ferrari N.V. RACE stock gained after the luxury auto company reported its fourth-quarter print and guidance.

The Italian car manufacturer reported quarterly sales growth of 14% year-on-year to $1.85 billion (1.74 billion euros). It beat the analyst consensus estimate of $1.66 billion.

Here’s a breakdown of the report:

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• EPS of $2.28 (2.14 euros) beat the analyst consensus estimate of $1.89.
• Revenue from cars and spare parts rose 16% year-over-year, and Sponsorship, commercial, and brand revenues increased by 22%. Total shipments grew by 2% year over year to 3,325 units.
• Adjusted EBITDA rose 15.2% Y/Y to 643 million euros, and the margin expanded 40 basis points Y/Y to 37.04%.
• Adjusted net profit for the quarter increased 31.3% to 386 million euros.
• Operating cash flow totaled 494 million euros with a 217 million euros free cash flow.
• As of December 31, 2024, the company’s net industrial debt was 180 million euros, compared to 99 million euros as of December 31, 2023.
• Ferrari held 1.74 billion euros in cash and equivalents as of December 31, 2024.

Ferrari CEO Benedetto Vigna expects further “robust growth” in 2025.

He also flagged the inauguration of the e-building in its products, best highlighted by the so-called supercar, the Ferrari F80, and in R&D, with the new E-Cells Lab.

Outlook: Ferrari expects fiscal 2025 net revenues to be greater than 7.0 billion euros, compared to an estimate of 7.16 billion euros.

The company expects fiscal 2025 adjusted EPS of greater than or equal to 8.60 euros versus an estimate of 8.88 euros.

Adjusted EBITDA will be greater than 2.68 billion euros, with a margin greater than 38.3%.

European automakers continue to grapple with China’s local manufacturers, who launched new models at huge discounts. Economic challenges led to a pullback in luxury car spending, the Wall Street Journal reports. However, Ferrari has limited exposure to China. Ferrari wants to keep sales in the country below 10% of its overall deliveries as it is a lower-margin region due to high taxes.

Price Action: Ferrari stock is up 9.10% at $467.99 at the last check on Tuesday.

Ferrari stock is up over 24% in the last 12 months.

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