Summary of Ferrari (RACE) Q1 2026 Earnings Call

1Key Financial Results and Metrics:

Revenues: Approximately EUR 1.85 billion, representing a 6% increase year-over-year at constant currency (3% including currency headwinds).

EBITDA: Surpassed EUR 720 million, with an EBITDA margin of 39.1%.

Industrial Free Cash Flow: Exceeded EUR 650 million.

Order Book: Extended through the end of 2027, indicating strong demand.

Deliveries: Slightly lower than the previous year due to model changeovers, but flat year-over-year in the Middle East despite geopolitical tensions.

2Strategic Updates and Business Highlights:

Model Launches: The upcoming Ferrari Luce is set for its world premiere on May 25, 2026, with significant anticipation from clients. The Amalfi Spider was launched in March as part of four planned launches for the year.

Personalization: Personalization accounted for approximately 20% of total revenues from cars and spare parts, indicating strong client engagement.

Racing Performance: Positive results in both Formula 1 and the World Endurance Championship, signaling progress under new regulations.

New Store Openings: A flagship store opened in London, enhancing the lifestyle brand experience.

3Forward Guidance and Outlook:

Ferrari confirmed its guidance for the year, expecting profitability to be more evenly spread between the first and second halves of 2026. The company remains confident in its ability to navigate current geopolitical and macroeconomic challenges.

4Bad News, Challenges, or Points of Concern:

Geopolitical Risks: Ongoing tensions in the Middle East posed logistical challenges, although Ferrari managed to keep deliveries flat in the region.

Currency Headwinds: Anticipated EUR 200 million impact from foreign exchange fluctuations, primarily affecting the U.S. dollar and Japanese yen.

Supply Chain Stability: While no immediate supply chain issues were reported, inflationary pressures remain a concern.

5Notable Q&A Insights:

Middle East Market: CEO Benedetto Vigna noted strong showroom traffic and order intake in the Middle East, with over 500 test drives conducted recently.

Profitability Spread: CFO Antonio Piccon clarified that adjustments made to deliveries in Q1 would lead to a more balanced profitability outlook for H1 and H2, without detracting from H2 growth.

Electrification Strategy: Vigna emphasized that Ferrari's hybridization and electrification plans remain unaffected by potential changes in Formula 1 regulations.

Handling Speciale Package: The introduction of a sporty personalization package for the Purosangue was a response to customer demand, indicating Ferrari’s commitment to client feedback. Overall, Ferrari reported strong financial performance in Q1 2026, with a robust order book and strategic initiatives that position the company well for future growth, despite facing some geopolitical and economic challenges.