Ferrari N.V.

Ferrari N.V. (NYSE: RACE) commonly referred to as Ferrari, is an Italy-headquartered company incorporated in the Netherlands that designs, manufactures, and sells high-performance sports cars.

Key Business and Financial Updates:

• Steady Revenue Growth: Ferrari reported net revenues of Euro 1,787 million in the second quarter of 2025, representing a 4.4% increase compared to the prior year, and Euro 3,578 million for the first half, up 9%. Growth was fueled by a richer product and country mix, along with strong demand for personalizations. Sponsorship, commercial, and brand revenues rose significantly by 21.9% in the quarter, driven by stronger Formula 1 results and lifestyle activities, highlighting the company’s diversified revenue base beyond car sales.
• Profitability at Elevated Levels: The company achieved an operating profit (EBIT) of Euro 552 million in Q2, an 8.1% year-over-year rise, with an EBIT margin of 30.9%. For the first six months, EBIT reached Euro 1,094 million, up 15%, with margins expanding to 30.6%. EBITDA followed a similar trajectory, rising 5.9% in Q2 to Euro 709 million, with margins improving to 39.7%. The uplift in profitability reflects a favorable mix of higher-value models, increased personalizations, and strong contributions from the SF90 XX and 12Cilindri families.
• Sustained Bottom-Line Performance: Net profit in Q2 stood at Euro 425 million, up 2.9% versus the prior year, while diluted earnings per share increased to Euro 2.38 from Euro 2.29. For the half year, net profit reached Euro 837 million, a 9% improvement, and diluted EPS rose 11% to Euro 4.68. These results were supported by strong operating leverage, despite higher R&D and SG&A expenses, as Ferrari continues to invest in racing, brand activities, and product innovation.
• Resilient Shipments and Product Mix: Shipments in Q2 were largely stable at 3,494 units compared to 3,484 units last year. Regional performance showed modest variations, with Americas and Rest of APAC posting slight growth, while Mainland China, Hong Kong, and Taiwan recorded a 1% decline. The product mix remained healthy, with internal combustion engine models accounting for 55% of deliveries and hybrids 45%. Notably, deliveries were supported by the 296 GTS, Purosangue, Roma Spider, and the ramp-up of the 12Cilindri family, while the Daytona SP3 neared the end of its delivery cycle.
• Strong Cash Flow Generation: Ferrari generated industrial free cash flow of Euro 232 million in Q2, underpinned by strong EBITDA from industrial activities. Capital expenditures were Euro 239 million, while net cash interests and taxes absorbed Euro 184 million. Net industrial debt increased to Euro 338 million by the end of June 2025, primarily reflecting a Euro 536 million dividend payment during the quarter. Despite this, Ferrari maintained a robust liquidity position of Euro 2,068 million, including undrawn credit lines.
• Positive Outlook and Guidance: The company reaffirmed stronger confidence in its 2025 guidance, targeting net revenues above Euro 7.0 billion, adjusted EBITDA of at least Euro 2.68 billion with margins above 38.3%, and industrial free cash flow exceeding Euro 1.2 billion. Ferrari expects continued benefits from product and country mix, increased personalizations, and higher contributions from racing and lifestyle activities. Importantly, the risk from US tariffs on EU car imports was removed following a favorable trade agreement, further supporting margin resilience in the second half.
• Innovation and Brand Strength: Ferrari’s performance was reinforced by strategic product launches and brand initiatives. The company introduced the 296 Speciale family, received prestigious international design awards for the 12Cilindri, and launched the Ferrari Hypersail project, showcasing innovation beyond automotive. Additionally, the unveiling of the Ferrari Amalfi in July 2025 underlined the company’s ability to blend sportiness with elegance, strengthening its product portfolio and future order book.

Technical Observation (on the daily chart):

Ferrari’s stock is showing short-term bullish momentum, trading above both the 21-day and 50-day moving averages with RSI at 64, indicating further upside potential without being overbought.  

Ferrari delivered another strong quarter in Q2 2025, with revenues, profitability, and cash flow all improving despite flat shipments, highlighting the strength of its premium pricing, richer product mix, and rising personalizations. Robust demand for new models like the 12Cilindri and 296 Speciale, coupled with higher brand and racing revenues, reinforced Ferrari’s ability to expand margins and generate healthy free cash flow. With a resilient order book, strong liquidity, and upgraded 2025 guidance, the company remains well-positioned for sustained growth and premium valuation.

As per the above-mentioned price action, important financial updates, momentum in the stock over the last three months, and technical indicators analysis, a ‘Buy’ rating has been given for Ferrari N.V. (NYSE: RACE) at the current price of USD 493.80, as of September 05,2025 at 7:35 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is September 05, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.