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Ferrari N.V.

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Business Summary

Ferrari operates within the luxury performance car industry, which it defines as cars powered by engines producing more than 500 hp and selling at a retail price in excess of Euro 200,000. The company has also identified an Enlarged Luxury Performance Car Industry that includes high-riding four-door luxury performance cars offering more than 500 hp and priced in excess of Euro 200,000. After recovering and surpassing pre-pandemic volumes in 2022, the Enlarged Luxury Performance Car Industry continued to grow up to 2024, showing a slowdown in 2025. Ferrari shipments surpassed the 2019 pre-pandemic levels in 2021, continued to grow each year up to 2023, and have remained broadly stable since. The industry is generally affected by global macroeconomic conditions, and a significant portion of demand is driven by new product launches. Growing environmental concerns are leading to increasingly stringent emissions regulations and an increase in demand for hybrid vehicles, while costs and limited charging infrastructure are currently limiting factors in the demand for electric vehicles.

Ferrari's main competitors are Lamborghini, McLaren, Aston Martin, Rolls-Royce and Bentley, as well as Porsche, Mercedes Benz and Land Rover in certain segments. Competition is primarily driven by brand strength, product appeal in terms of performance, driving thrills, styling and innovation, as well as price and total cost of ownership. Ferrari believes that the resilience of its car value after a period of ownership is a strong competitive advantage. In 2025, Ferrari had a market share of 24% in the Luxury Performance Car Industry and a market share of 18% in the Enlarged Luxury Performance Car Industry. Ferrari is market leader in several countries, including Italy, France, Japan, Mainland China, Singapore and South Korea among others.

Ferrari generates revenue primarily through the design, engineering, and production of luxury sports cars, which are sold in over 60 markets worldwide through a network of 181 authorized dealers operating 195 points of sale as of the end of 2025. The company also generates revenue from sponsorship, commercial and brand activities, including its Formula 1 racing team and lifestyle activities, as well as from financial services and other activities. The company pursues a controlled volume car production strategy to maintain exclusivity and scarcity. In 2025, approximately 84% of new cars were sold to clients who already owned at least one Ferrari, and approximately 56% to clients who owned multiple Ferraris.

Ferrari's current product portfolio consists of nine Range models, four Special Series models, and one Supercar model. Range models include two V8 internal combustion engine models (Roma Spider and Amalfi), three V12 ICE models (Purosangue, 12Cilindri and 12Cilindri Spider), two V6 hybrid models (296 GTB and 296 GTS), and two V8 hybrid models (849 Testarossa and 849 Testarossa Spider). Special Series models include the SF90 XX Stradale, SF90 XX Spider, 296 Speciale and 296 Speciale A. The Supercar model is the F80. In 2025, the company launched six new models: 296 Speciale, 296 Speciale A, Amalfi, 849 Testarossa, 849 Testarossa Spider and the Ferrari Luce, its first full electric model. The Ferrari Luce will join the Range model line-up. During the year, the SF90 Spider, 812 Competizione A, and Daytona SP3 were phased out. The company also produces track cars and limited edition One-Off cars. In 2025, shipments were 13,640 cars, with 58% internal combustion engine models and 42% hybrid models. Net revenues from cars and spare parts were €6,005 million in 2025, compared to €5,728 million in 2024.

Net revenues from sponsorship, commercial and brand activities were €820 million in 2025, an increase of €150 million or 22.4% compared to €670 million in 2024. This increase was primarily attributable to sponsorships and lifestyle activities, as well as higher commercial revenues reflecting the better ranking in the 2024 Formula 1 season compared to 2023. Other net revenues were €321 million in 2025, an increase of €42 million or 15.0% compared to €279 million in 2024, mainly driven by other sports-related activities and financial services.

In 2025, Ferrari launched six new models: the 296 Speciale, 296 Speciale A, Amalfi, 849 Testarossa, 849 Testarossa Spider and the Ferrari Luce, its first full electric model. The first reveal phase of the Ferrari Luce took place in October 2025. In October 2025, the company started the three-phase launch of the Ferrari Luce. In June 2025, Ferrari introduced the Hypersail project, a sailing sporting initiative. In 2025, Ferrari completed the construction of the Ferrari e-Vortex, a new test circuit adjacent to the Fiorano track, in less than four months. In 2025, the company obtained the LEED Platinum certification for its new paint shop. In 2025, Ferrari produced the SC40, a One-Off model based on the 296 GTB. In 2025, Ferrari approved dividends to owners of the parent company of €532 million and completed common share repurchases of €785 million . At the Capital Markets Day on October 9, 2025, Ferrari announced a new multi-year share repurchase program of approximately €3.5 billion expected to be executed from 2026 to 2030, as well as a proposed increase in the expected dividend payout ratio from 35% to 40% of Adjusted Net Profit starting from the 2025 annual results. In 2025, the company also announced plans to open new Tailor Made centers in Tokyo and Los Angeles by 2027 and to renew its existing center in Maranello.

Net revenues for 2025 were €7,146 million , an increase of €469 million or 7.0% compared to €6,677 million for 2024. Operating profit (EBIT) was €2,110 million , an increase of €222 million or 11.8% compared to €1,888 million for 2024. Net profit was €1,600 million compared to €1,526 million in 2024. EBITDA was €2,772 million compared to €2,555 million in 2024. Free Cash Flow from Industrial Activities was €1,535 million compared to €1,027 million in 2024.

Business Outlook

The 2026 Outlook section was removed for the Form 20-F filing with the SEC.

Ferrari's growth strategy includes a controlled expansion of sales and operations, with a focus on targeted regions and markets identified as having relatively high growth potential. The company plans to launch an average of four new models per year over the period from 2026 to 2030, consistent with its "different Ferrari for different Ferraristi" and "different Ferrari for different moments" strategies. The company intends to continue broadening and diversifying its product offering and target a potentially larger and younger customer base. In lifestyle, Ferrari aims to foster growth by broadening its client base and expanding its value proposition beyond its core business, with a focus on personal luxury goods, collectibles, and experiences. The company plans to open new Tailor Made centers in Tokyo and Los Angeles by 2027 and to renew its existing center in Maranello.

Ferrari's growth strategy also includes expanding operations in growth market countries, particularly in Asia, recognizing the increasing personal wealth of consumers. The company believes it has potential for further success in these markets. However, the company also notes that initiatives from several global luxury automotive manufacturers have increased competitive pressures for luxury cars in several growth markets. The company's deliberate geographical allocation strategy and the expansion of its product portfolio across customer groups, geographies and modes of use are intended to support the evolution of its revenue mix and brand reach.Ferrari's production processes employed 1,804 engineers, technicians and other personnel as of December 31, 2025. The company's flexible production structure and organization allow it to adjust and increase production capacity to accommodate expected production requirements. The company's e-Building, inaugurated in June 2024, is a strategic asset for vehicle assembly and the construction of electric motors, batteries, and electric axles, and is based on the concept of flexibility. In 2024, Ferrari began the construction of its new paint shop, which continued in 2025 and is ongoing. The company also completed the construction of the Ferrari e-Vortex in 2025. The company continues to make significant capital investments in operating assets and infrastructure projects, including for the ongoing construction of its new paint shop.

At the Capital Markets Day on October 9, 2025, Ferrari announced a new multi-year share repurchase program of approximately €3.5 billion expected to be executed from 2026 to 2030, as well as a proposed increase in the expected dividend payout ratio from 35% to 40% of Adjusted Net Profit starting from the 2025 annual results. Capital expenditures for 2025 were €1,013 million , compared to €1,064 million in 2024. Capitalized development costs amounted to €421 million in 2025, compared to €476 million in 2024. At December 31, 2025, the Group had contractual commitments for the purchase of property, plant and equipment amounting to €275 million .

Ferrari faces structural headwinds from increasingly stringent fuel economy, emissions and safety standards globally, which could significantly affect product development plans and increase costs. The company is subject to comprehensive and constantly evolving laws, regulations and policies regarding environmental, fuel economy, vehicle safety, noise emission and connectivity concerns. The company also faces risks from global economic conditions, including inflation, interest rate changes, and trading policies and tariffs. In 2025, the United States represented 25% of Ferrari's shipments and 28% of its revenues from cars and spare parts. The U.S. administration imposed an additional 25% ad valorem tariff on imported automobiles in March 2025, which was later reduced to 15% from August 1, 2025. The company also faces risks related to the ongoing conflict between Russia and Ukraine, which has contributed to volatility in energy prices and higher costs of certain raw materials.

Ferrari faces execution risks related to its controlled growth strategy, including the challenge of balancing brand exclusivity with increased production. The company sold 13,640 cars in 2025, compared to 7,255 cars in 2014. The company also faces risks related to the introduction of electric technology in its cars, which is costly and whose long-term success is uncertain. The integration of electric technology more broadly into the car portfolio over time may present challenges and requires significant investments. The company also faces risks related to its dependence on a limited number of suppliers, many of which are single source suppliers, and the potential for supply disruptions. The company also faces risks related to its manufacturing facilities in Maranello and Modena, which could become unavailable due to contamination, power shortage, labor unrest, or natural disasters.

Risk Factors

Ferrari faces significant risks from its inability to preserve and enhance the value of its brand, which depends on factors such as design, performance, quality, and the success of its racing teams. The company's controlled volume strategy, with shipments of 13,640 cars in 2025, limits potential sales growth and profits, and if volumes increase, brand exclusivity may be eroded. The introduction of electric technology is costly and its long-term success is uncertain, with the company starting the three-phase launch of its first full electric Ferrari, the Ferrari Luce, in October 2025. Ferrari is subject to comprehensive and constantly evolving laws and regulations regarding emissions, fuel economy, and safety, and the costs of compliance are expected to increase significantly. The company depends on a limited number of suppliers, many of which are single source, and disruptions in supply could lead to delays in car deliveries. In 2025, the United States represented 25% of shipments and 28% of revenues from cars and spare parts, and the company faces risks from trade policies and tariffs, including an additional 25% ad valorem tariff on imported automobiles imposed in March 2025, later reduced to 15% from August 1, 2025.

Management Priorities

Management's message emphasizes Ferrari's position as one of the world's leading luxury brands, encompassing racing, sports cars and lifestyle, with a focus on exclusivity, innovation and cutting-edge performance. The company is fiercely protective of its brand and pursues sustainable growth while preserving uniqueness and rarity. Key strategic priorities include preserving product exclusivity and nurturing the client community in Sports Cars, competing at the pinnacle of motorsport in Racing, and designing and creating a selection of personal luxury goods, collectibles and experiences in Lifestyle. Management also emphasizes the integration of environmental and social considerations with economic objectives, noting that in October 2025 the company strengthened the integration of environmental topics into its strategic plan, outlining its updated decarbonization strategy to 2030. The company announced a new multi-year share repurchase program of approximately €3.5 billion expected to be executed from 2026 to 2030, and a proposed increase in the expected dividend payout ratio from 35% to 40% of Adjusted Net Profit starting from the 2025 annual results.

View Source Annual Report on SEC.gov ↗

References

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Analysis on 9/27/2026