Ferrari N.V. (RACE) Stock: Q3 2025 Earnings Beat, Guidance Raised on Strong Demand

TLDR

• Ferrari’s Q3 2025 revenue rose 7.4% to €1.8 billion.
• EBIT exceeded €500 million, with EBITDA margin at 37.9%.
• Full-year 2025 guidance raised above prior 2026 targets.
• Strong demand extends order book into 2027.
• Challenges include tariffs, FX headwinds, and lower deliveries.

Ferrari N.V. (NYSE: RACE) stock traded at $399.63, up 0.06% overnight, after reporting third-quarter 2025 earnings that topped expectations and prompted an upward revision to full-year guidance.

Ferrari N.V., RACE

The luxury automaker’s strong order book and profit growth offset near-term delivery challenges.

Robust Revenue and Profit Performance

Ferrari’s total revenue reached approximately €1.8 billion, marking a 7.4% year-over-year increase driven by a richer product mix and high demand for new models. Earnings before interest and taxes (EBIT) exceeded €500 million, while EBITDA margin reached 37.9% and EBIT margin stood at 28.4%, underscoring the brand’s operational strength.

Industrial free cash flow came in at €365 million, and net industrial debt was reduced to €116 million by the end of September, reflecting disciplined cost management and strong cash generation.

Upward Guidance and Long-Term Growth Plans

Ferrari raised its 2025 outlook, surpassing its initial 2026 profitability target, reflecting management’s confidence in sustained demand and pricing power. The company’s order book now extends well into 2027, supported by upcoming launches such as the 849 Testarossa family and the Amalfi model line.

Looking ahead, Ferrari plans to release an average of four new models per year between 2026 and 2030, spanning internal combustion engine (ICE), hybrid, and electric powertrains to appeal to a wider clientele and maintain its innovation leadership in the luxury segment.

Macroeconomic and Operational Challenges

Despite its strong financial footing, Ferrari highlighted several headwinds. The company cited volatile macroeconomic conditions, foreign exchange fluctuations, and incremental U.S. import tariffs as factors that negatively impacted profitability in Q3.

A shift in product mix, due to lower deliveries of the Daytona SP3 and phase-out of select models, also slightly weighed on revenue growth. Ferrari expects lower deliveries year-over-year in Q4 2025, owing to a major model transition cycle.

Concerns over potential order cancellations in the U.S. due to changing consumer trends were noted, though management remains confident in long-term demand strength.

Outlook and Market Position

Ferrari’s forward guidance signals resilience amid global uncertainty. Its diversified product roadmap and expanding personalization segment, accounting for 20% of car and spare part revenues, continue to boost margins and customer engagement.

Performance Overview

As of November 4, 2025, Ferrari’s stock has delivered a year-to-date return of 5.67% and a one-year gain of 15.56%, underperforming the FTSE MIB Index’s 26.55% YTD rise. Over three years, however, RACE shares surged 111.96%, outpacing the benchmark’s 85.82%, reflecting investor confidence in Ferrari’s innovation and profitability trajectory heading into 2026.

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