Ferrari Earnings: Margins Hold Despite Lower Volumes; Guidance Confirmed

Key Morningstar Metrics for Ferrari

• Fair Value Estimate
  : EUR 370
• Morningstar Rating
  : ★★★★
• Morningstar Economic Moat Rating
  : Wide
• Morningstar Uncertainty Rating
  : Medium

What We Thought of Ferrari’s Earnings

Ferrari RACE reported first-quarter revenue of EUR 1.85 billion, up 3% year over year despite lower deliveries, supported by a favorable mix and continued strength in personalization. Underlying EBIT margin was 29.7%—in line with guidance and 30.9% at constant currency, up 40 basis points year over year.

Why it matters: Ferrari continues to demonstrate its ability to drive top-line growth and strong margins through pricing and mix while keeping volumes under control, offsetting higher depreciation and amortization related to the ramp-up of new models and the impact of US import tariffs.

• Deliveries declined 4% year over year amid the ongoing model changeover. The ramp-up of the F80 and strong performance of Special Series models supported a richer product mix. Ferrari maintained shipments in the Middle East despite logistical constraints, bringing forward deliveries to other regions to support group volumes.
• Strong demand for personalization remained a key driver of pricing, supporting margin resilience. This should continue underpinning Ferrari’s profitability going forward, as we expect limited volume growth consistent with the firm’s focus on brand exclusivity.

The bottom line: We retain our EUR 370 fair value estimate for wide-moat Ferrari. Shares are currently trading at a 25% discount to our valuation. Full-year guidance was reaffirmed, with higher revenue and a flat to higher EBIT margin versus the 29.5% reported in 2025.

• Shares are down 4% at the time of writing, as we believe investors were disappointed by the confirmation of guidance despite strong first-quarter results. This comes in a year that should still see momentum build through the second half, although management now expects a slightly lower differential between the two halves.
• We still see scope for positive catalysts later in the year as new models ramp up, supported by management’s track record of delivering just above targets.

Key stats: Order book visibility now extends to the end of 2027.