Ferrari N.V. (NYSE: RACE)

Ferrari N.V. stands as the world's premier luxury sports car manufacturer, combining exceptional engineering excellence with Italian craftsmanship to create some of the most coveted vehicles on the planet. Ferrari designs, engineers, and manufactures some of the world's most expensive luxury cars. With supply carefully controlled to be below demand and a brand steeped in decades of motor racing history, a Ferrari is viewed as a status symbol.

Company Overview

Ferrari operates through a carefully orchestrated business model centered on exclusivity and premium positioning. Ferrari N.V., through its subsidiaries, engages in design, engineering, production, and sale of luxury performance sports cars worldwide. The company offers sports, track, one-off, and road cars, as well as supercars. Beyond vehicle manufacturing, it also provides spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars; and licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods.

The company extends its reach through various lifestyle ventures, including Ferrari museums in Modena and Maranello; Il Cavallino restaurant in Maranello; and theme parks in Abu Dhabi and Spain. Additionally, it provides direct or indirect finance and leasing services; a range of financial and ancillary services; special financing arrangements; and operates franchised and owned Ferrari stores.

Financial Performance and Market Position

Ferrari delivered outstanding financial performance in 2024, exceeding all guidance targets. The company's premium positioning and consistent financial performance solidify its status as one of the world's most valuable automotive companies.

The company's financial performance has shown remarkable resilience and a strong growth trajectory, underscored by robust profitability and strategic revenue streams.

2024 Full Year Results

- Net Revenues: Euro 6,677 million, up 11.8% (13.4% at constant currency).

- Revenues from Cars and spare parts were Euro 5,728 million (up 11.9% or 13.7% at constant currency), driven by a richer product and country mix, as well as increased personalizations.

- Sponsorship, commercial and brand revenues reached Euro 670 million, up 17.1% (17.6% at constant currency), mainly attributable to new sponsorships and lifestyle activities.

Key Financial Metrics (2024)

- EBITDA: Euro 2,555 million, up 12.1% versus prior year.

- EBITDA Margin: 38.3%

- Net Profit: Euro 1,526 million.

- Diluted EPS: Euro 8.46.

- Industrial Free Cash Flow: Euro 1,027 million.

Unit Sales and Geographic Mix

Shipments totaled 13,752 units in 2024, a slight increase of 0.7% versus the prior year. The geographic distribution reflects Ferrari's strategic allocation approach:

- 2024 Revenue Distribution:

- Europe, Middle East, and Africa: 47%

- The Americas: 33%

- Mainland China, Hong Kong, and Taiwan: 8%

- Rest of Asia: 12%

- In 2024, the company sold 13,752 vehicles at an average price over EUR 480,000, with more than 70% of its vehicles sold to existing Ferrari clients.

Market Capitalization

Ferrari maintains its position as one of the world's most valuable automotive companies. Ferrari has a market cap or net worth of $85.82 billion as of September 19, 2025. This valuation reflects the company's premium positioning and consistent financial performance.

Product Portfolio and Innovation

Ferrari's success stems from its diverse and continuously evolving product lineup. The increase in deliveries during the year was driven by models such as the Ferrari Purosangue, the Roma Spider, and the 296 GTS. The company strategically manages its model lifecycle, with shipments of the SF90 XX family and 12Cilindri commencing in the second part of the year, while deliveries of the 812 Competizione A decreased, nearing the end of its lifecycle.

A significant milestone was reached with the unveiling of the F80, marking a new chapter in the history of legendary supercars bearing the Prancing Horse badge. The F80 will be produced in a limited run of just 799 examples and joins the pantheon of icons such as the GTO, F40, and LaFerrari.

Manufacturing and Sustainability Initiatives

Ferrari has made substantial investments in future-ready manufacturing capabilities. On June 21, 2024, Ferrari inaugurated its new e-building. This facility is characterized by high production flexibility and a strong focus on the environment and people, with the capacity to produce the future Ferrari range equipped with internal combustion, hybrid, and electric powertrains.

The company is actively pursuing carbon neutrality goals, including the shutdown of the Maranello gas-fueled trigeneration plant ahead of schedule, which marks a further step towards its 2030 carbon neutrality goal.

Racing and Brand Activities

Ferrari's motorsport heritage remains a cornerstone of its brand identity. Eighty-six percent of revenue is generated from the sale of cars and spare parts, and 10% from sponsorship, commercial, and brand activities including racing and lifestyle activities. The company continues to expand its partnerships, including a multi-year agreement with UniCredit S.p.A. to be at its side in its Formula 1 racing activities, effective January 2025.

Financial Position and Capital Management

Ferrari maintains a robust financial position with strong cash generation capabilities. The company actively returns capital to shareholders through dividends and share repurchases, demonstrating confidence in its long-term prospects and commitment to shareholder value creation.

Outlook and Strategy

Looking ahead, Ferrari remains well-positioned for continued growth. On these solid foundations, further robust growth is expected in 2025, which will allow Ferrari to reach, one year in advance, the high-end of most of its profitability targets for 2026, according to CEO Benedetto Vigna. The company's strategic focus on maintaining exclusivity while expanding its product range and geographic presence positions it to capitalize on the growing global demand for luxury vehicles.

Ferrari's combination of iconic brand heritage, engineering excellence, strategic scarcity, and diversified revenue streams creates a compelling investment proposition in the luxury automotive sector. The company's ability to command premium pricing while maintaining strong margins demonstrates the enduring appeal of the Ferrari brand and its position as a true luxury icon.