Ferrari Kicks Off 2025 with Strength: €412M Net Profit and Record Free Cash Flow

Luxury carmaker Ferrari (NYSE: RACE) released its Q1 2025 financial results, delivering figures that exceeded market expectations. The company reported solid performance across all key metrics, maintaining high profitability and robust demand despite emerging regulatory and tariff-related challenges, particularly in the U.S. market.

Strong Quarterly Results: Growth in Revenue, Profit and Cash Flow

Ferrari posted revenues of €1.79 billion in Q1 2025, marking a 13% increase year-over-year. Operating profit (EBIT) rose to €542 million, up 22.7%, while net profit reached €412 million, a 17% gain.

Especially notable was the industrial free cash flow, which nearly doubled to €620 million, boosted in part by early advances collected for the new F80 model.

Solid Demand, Premium Product Mix, and a Full Order Book Through 2026

While total shipments grew only modestly to 3,593 vehicles for the quarter, Ferrari benefited from a high-margin product mix. Notably strong contributions came from the SF90 XX series and the new 12Cilindri.

The company confirmed that its order book is fully covered through 2026, a testament to resilient demand even in a volatile market environment. Growth was mainly observed in Europe and the Americas, while shipments in China declined by 63 units year-over-year.

Robust Profit Margins and Operational Stability

EBITDA margins came in at 38.7%, one of the highest in the global automotive industry. Diluted earnings per share (EPS) increased from €1.95 to €2.30, an 18% gain. No accounting adjustments were applied, reflecting the quality and consistency of earnings.

Meanwhile, the company invested €224 million in capital expenditures, including €110 million dedicated to technology development, supporting its long-term strategy focused on electrification and digital transformation.

2025 Outlook: Positive with One Cautionary Note

Ferrari reaffirmed a positive outlook for the year, targeting revenues above €7 billion, reflecting at least 5% growth over 2024. Adjusted operating profit is projected to reach at least €2.03 billion, up 7%, while adjusted diluted EPS is expected to exceed €8.60.

However, the company warned of a potential 50-basis-point impact on profit margins due to new tariffs imposed on European car imports into the United States, which could influence future commercial policies.

Bottom Line: Ferrari Steers Ahead with Strength and Confidence

Q1 2025 places Ferrari in a commanding position within the luxury automotive sector, showcasing the strength of its business model centered on exclusivity, pricing power, and sustained demand. With industry-leading margins, a premium product mix, and a fully booked order pipeline, Ferrari continues to accelerate forward with confidence.