Ferrari (RACE) Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenues: EUR 1.94 billion, an increase of 11% at constant currency (8% including currency headwinds).

EBITDA: EUR 755 million.

Industrial Free Cash Flow: EUR 275 million.

EBIT Margin: 31.2%, slightly up from the previous year.

EBITDA Margin: 39%, slightly down due to better Formula 1 ranking assumptions.

Personalization Revenue: Exceeded expectations, accounting for over 20% of total revenues from cars and spare parts.

2Strategic Updates and Business Highlights

Order Book: Fully covers demand through 2027, with strong sales for models like the 296 Speciale and 12Cilindri families.

Product Innovation: Launched the Ferrari Luce, the first electric model, and the 12Cilindri Manuale, a limited edition with a manual transmission. Both models received positive initial orders.

Diversified Product Offering: Ferrari now offers a full range of propulsion technologies, including combustion, hybrid, and electric vehicles.

Lifestyle Initiatives: Continued engagement with clients through unique experiences and events, enhancing brand loyalty.

3Forward Guidance and Outlook

Increased Guidance: Full-year guidance raised due to strong personalization trends and a favorable FX environment.

Expectations for H2: Anticipated continued strong margins and cash flow generation, with D&A expected to grow in the second half.

Market Strategy: Focus on maintaining exclusivity and scarcity in product offerings while responding to customer desires.

4Challenges and Points of Concern

Volume Management: Deliberate lower volume due to model changeovers and increased personalization, leading to a decline in shipments in certain regions, particularly the U.S.

Currency Impact: While the U.S. dollar strengthened, it introduced some headwinds, although hedging mitigated negative impacts.

Geographic Disparities: Shipments in the Americas were down year-over-year, raising concerns about demand versus supply issues.

5Notable Q&A Insights

Pricing Power: There is a perceived stronger pricing power for traditional models, influencing future product launches.

Volume Growth: The company maintains a cautious stance on volume growth, emphasizing the importance of managing exclusivity.

Personalization Trends: Increased personalization is driven by higher-value options selected by clients, reflecting a general trend rather than specific items.

New Customer Acquisition: The Luce is attracting both repeat and new customers, particularly those interested in electric vehicles, with no clear geographic preference.

Manuale Model Lifecycle: The limited edition Manuale is expected to have a defined lifecycle, but specific shipment projections were not disclosed. Overall, Ferrari demonstrated strong financial performance in Q2 2026, supported by robust demand and innovative product offerings, while navigating challenges related to volume management and geographic disparities in sales.