20-F: Ferrari Accelerates Electrification, Posts Strong 2025 Financials

Ferrari N.V. reported robust financial results for 2025 with increased revenues and profits, driven by a richer product mix and strategic launches, alongside significant advancements in its electrification strategy.

Summary

• Net revenues for 2025 increased by 7.0% to €7,146 million, up from €6,677 million in 2024.
• Operating profit (EBIT) rose by 11.8% to €2,110 million in 2025, compared to €1,888 million in 2024.
• Net profit for 2025 reached €1,600 million, an increase from €1,526 million in 2024.
• EBITDA grew by 8.5% to €2,772 million in 2025, up from €2,555 million in 2024.
• Car shipments slightly decreased by 0.8% to 13,640 units in 2025, but revenue growth was sustained by a richer product and country mix, and higher personalization contributions.
• Six new models were launched in 2025, including the Ferrari Luce, the company's first full electric model, with its technical components presented in October 2025.
• Hybrid models constituted 42% of shipments in 2025, while internal combustion engine (ICE) models accounted for 58%.
• Sponsorship, commercial, and brand net revenues increased by 22.4% to €820 million, primarily due to new sponsorships, lifestyle activities, and improved Formula 1 ranking.
• Net Industrial Debt significantly decreased to €32 million at December 31, 2025, from €180 million at December 31, 2024.
• Free Cash Flow increased to €1,406 million in 2025, up from €938 million in 2024.
• A new multi-year share repurchase program of approximately €3.5 billion is planned for execution between 2026 and 2030.
• The proposed dividend payout ratio is set to increase from 35% to 40% of Adjusted Net Profit, starting with the 2025 annual results.
• Ferrari won both the FIA World Endurance Championship World Manufacturers and World Drivers Championships in 2025, marking its third consecutive victory at the 24 Hours of Le Mans.
• The Ferrari e-Building, for electric motor and battery production, was inaugurated in June 2024, and the Ferrari e-Vortex test circuit was completed in 2025.
• The company obtained LEED Platinum certification for its production processes in 2025, reflecting its commitment to sustainability.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this filing as highly positive, reflecting strong financial performance, strategic product innovation including electrification, and significant achievements in motorsport, all while maintaining brand exclusivity and committing to shareholder returns.

Positives

• Net revenues increased by 7.0% to €7,146 million in 2025, demonstrating strong top-line growth.
• Operating profit (EBIT) grew by 11.8% to €2,110 million, indicating enhanced operational efficiency and profitability.
• Net profit increased to €1,600 million, reflecting solid bottom-line performance.
• EBITDA increased by 8.5% to €2,772 million, showcasing robust earnings before non-cash charges.
• Despite a slight decrease in car shipments, a richer product and country mix, along with higher personalization contributions, drove revenue growth.
• The launch of six new models in 2025, including the first full electric Ferrari Luce, demonstrates a strong product pipeline and commitment to innovation.
• Significant reduction in Net Industrial Debt to €32 million from €180 million, strengthening the company's financial position.
• Free Cash Flow increased substantially to €1,406 million, providing ample liquidity for strategic investments and shareholder returns.
• Sponsorship, commercial, and brand revenues saw a significant 22.4% increase, highlighting the enduring strength and appeal of the Ferrari brand.
• Ferrari's racing teams achieved outstanding success, winning the FIA World Endurance Championship World Manufacturers and World Drivers Championships, and securing a third consecutive victory at the 24 Hours of Le Mans.
• The inauguration of the e-Building and completion of the e-Vortex test circuit underscore strategic investments in electrification and R&D infrastructure.
• The company's commitment to sustainability is recognized with LEED Platinum certification for its production processes.
• The proposed increase in dividend payout ratio to 40% and a new €3.5 billion share repurchase program signal strong shareholder returns.

Negatives

• Total car shipments decreased slightly by 0.8% in 2025 compared to 2024, indicating a plateau in volume growth.
• The proportion of hybrid models in shipments decreased to 42% in 2025 from 51.3% in 2024, with ICE models increasing to 58%, which is a reversal of the trend seen in 2024.
• Financial expenses, net, shifted to a negative €46 million in 2025 from a positive €1 million in 2024, primarily due to negative net foreign currency exchange impact and lower interest income.
• Available liquidity decreased to €2,017 million at December 31, 2025, from €2,292 million at December 31, 2024.
• Higher import tariffs in the United States impacted cost of sales in the second half of 2025.
• Increased operational and marketing expenses, as well as higher R&D costs for racing and sports cars, partially offset profit growth.
• The company was subject to a ransomware attack in March 2023, leading to a leak of several hundred customers' personal identifiable information, which could have reputational implications.

Risks

• Inability to preserve and enhance the value of the Ferrari brand, especially with the integration of electric technology and expansion into non-car products, could drive down demand and revenues.
• Failure to attract and retain qualified personnel, including top drivers, racing team management, and engineering talent, could harm competitive position and business strategy.
• Sustained period without racing success, particularly in Formula 1, could detract from the Ferrari brand and client enthusiasm.
• Inability to keep up with advances in high-performance car technology, especially in hybrid and electric powertrains, could lead to competitive disadvantage.
• Product defects or unexpected performance issues in cars, particularly new hybrid and electric models, could harm reputation and result in recalls and liability claims.
• Car designs failing to appeal to clients' evolving tastes could adversely affect brand image and sales.
• The introduction of electric technology is costly, and its long-term success and impact on driver experience and residual value are uncertain.
• New or changing laws and regulations regarding fuel economy, emissions, vehicle safety, and connectivity could significantly increase costs and limit product offerings.
• Dependence on single-source suppliers for key raw materials and components exposes the company to supply disruptions, shortages, and increased costs.
• The controlled volume strategy may limit potential profits, and an imbalance between exclusivity and increased production could erode brand desirability.
• Reliance on a small number of car models makes financial results vulnerable to the unsuccessful launch of a single model.
• Global economic conditions, macro events (like conflicts), and trading policies/tariffs can adversely affect sales, disposable incomes, and supply chains.
• Public health crises (epidemics, pandemics) could disrupt operations, supply chains, and consumer demand.
• Intense competition in the luxury performance car industry, including new entrants with advanced electric technology, could impact market share and profitability.
• Changes in client preferences and automotive trends, particularly regarding electrification and connectivity, pose risks if the company fails to adapt.
• The value of the brand and demand for cars depend on the value of vehicles over time and the automotive collector community, which could be impacted by increased production or personalization.
• Concentration of manufacturing facilities in Maranello and Modena exposes the company to disruptions from natural disasters, power shortages, or labor unrest.
• Risks associated with climate change and increased stakeholder focus on environmental matters, including failure to meet carbon footprint reduction expectations, could lead to reputational and financial impacts.
• Disruption in information technology systems, including cybercrimes, could compromise confidential information, disrupt business, and damage reputation.
• Reliance on a dealer network means financial difficulties or failure to meet quality expectations by dealers could adversely affect sales and brand image.
• Exposure to product warranties and potential costly car recalls could harm financial condition and reputation.
• Revenues from Formula 1 activities may decline if sponsorship agreements are not renewed favorably, team performance worsens, or overall F1 business suffers.
• Reliance on licensing and franchising partners means their failure to maintain brand standards could damage reputation and business.
• Inability to protect trademarks and other intellectual property rights against infringement or misappropriation by third parties could lead to competitive harm and financial costs.
• Risks associated with international operations, including unfavorable regulatory, political, tax, and labor conditions, and difficulties in establishing new markets.
• Developments in growth markets, such as rising geopolitical tensions or government policies discouraging luxury purchases, could adversely affect business.
• Labor laws and collective bargaining agreements could impact operational efficiency.
• Improper conduct of employees, agents, or representatives could adversely affect reputation and business.
• Changes in tax, tariff, or fiscal policies could adversely affect demand for products and results of operations.
• Loss of Authorized Economic Operator certificate could lead to increased costs and shipment delays.
• Debt could adversely affect operations and ability to service or refinance debt, especially with rising interest rates.
• Exposure to exchange rate fluctuations, interest rate changes, credit risk, and other market risks could negatively impact earnings and cash flows.
• Car sales depend on the availability of affordable financing, and rising interest rates or tighter lending standards could reduce demand.
• Inadequate insurance coverage may not protect against all potential losses.
• The loyalty voting program may affect the liquidity of common shares and reduce their market price, and the interests of largest shareholders may differ from others.
• Potential conflicts of interest due to director and officer overlaps with Stellantis and Exor.
• Uncertainty regarding U.S. federal income tax treatment of special voting shares and potential PFIC considerations for U.S. holders.
• Uncertainty regarding the amount of future tax benefits from the Patent Box tax regime in Italy.

Future Outlook

Ferrari plans to continue its controlled volume and growth strategy, launching an average of four new models per year from 2026 to 2030. The company intends to further broaden and diversify its product offering, targeting a larger and younger customer base while preserving brand exclusivity. The proposed dividend payout ratio is expected to increase to 40% of Adjusted Net Profit starting from the 2025 annual results, and a new multi-year share repurchase program of approximately €3.5 billion is anticipated between 2026 and 2030. The company will continue to monitor evolving regulatory landscapes, particularly regarding emissions and safety standards, and adapt its operations and product development accordingly. Further developments in Chinese and UN regulations on vehicle emissions and battery durability are expected in 2026.

Management Comments

• We are fiercely protective of our brand, which is among the most iconic and recognizable in the world, and critical to our value proposition to our stakeholders.
• We pursue sustainable growth while preserving our uniqueness and rarity over the longer term in everything we do.
• Our commitment to excellence across all our products and our pursuit of innovation, state-of-the-art performance and distinction in design, engineering and craftsmanship is inseparable from our commitment to integrity, transparency and responsibility in conducting our business.
• In October 2025, we strengthened the integration of environmental topics into our strategic plan, outlining our updated decarbonization strategy to 2030.
• The foundation of a responsible company rests on being fully attentive to the environment, the extent of our interconnection with it, and our understanding of both the potential effects of our activities and how those effects can be mitigated through responsible management.
• We believe in giving our clients true freedom of choice in how their car is powered. Yet, whatever the powertrain, each Ferrari is created to ignite the powerful emotions that are at the heart of our cars driving experience.
• The Ferrari Luce is a concentration of innovative thinking and technical creativity, ensuring distinctive Ferrari emotions. It widens our range models in terms of driving thrills, experience on board and useability while providing a completely personalized driving experience.
• Our V6, V8 and V12 combustion engines will continue to be offered and innovated, in line with new global regulations and with a focus on increasing specific power output and ensuring compatibility with alternative fuels.
• Thanks to our e-Building, we aim to enhance flexibility across our entire production line, positioning us to better address future demands and to manage an even more complete and diversified product mix.
• We believe that our careful and strict selection of the dealers that sell our cars is a key factor for promoting the integrity and success of our brand.
• Ferrari reaffirmed its commitment to delivering extraordinary experiences that strengthen brand positioning and deepen client loyalty.
• Our growth strategy also depends on our ability to attract quality new dealers to sell our products in new areas.
• We believe that our cash generation, together with our available liquidity, including committed credit lines granted by primary financial institutions and our access to debt capital markets, will be sufficient to meet our short-term and long-term liquidity requirements.

Industry Context

StockSavvy.ai notes that Ferrari's 2025 performance demonstrates resilience and strategic agility within the luxury performance car industry, which experienced a slowdown in 2025 after recovering and surpassing pre-pandemic volumes. While the broader market is seeing increased demand for hybrid vehicles, Ferrari's 2025 shift to 58% ICE and 42% hybrid shipments, a decrease in hybrid proportion from 2024, suggests a nuanced approach to electrification, potentially balancing traditional appeal with new technology. The company's continued success in motorsport, particularly its third consecutive Le Mans victory and WEC championships, reinforces its brand image and technological prowess, a key differentiator in a competitive landscape with new entrants and evolving client preferences. Ferrari's focus on personalization and expanding its lifestyle offerings aligns with broader luxury market trends of enhancing customer experience and brand relevance across generations, mitigating some of the volatility seen in discretionary spending.

Comparison to Industry Standards

• Ferrari's market share in the Luxury Performance Car Industry (two-door, >500 hp, >€200k) was 24% in 2025, indicating a strong position among competitors like Lamborghini, McLaren, Aston Martin, Audi, Bentley, Mercedes Benz, Porsche, and Rolls-Royce.
• In the Enlarged Luxury Performance Car Industry (including high-riding four-door, >500 hp, >€200k), Ferrari held an 18% market share in 2025, competing with the aforementioned brands plus Land Rover.
• Ferrari maintains market leadership in several countries, including Italy, France, Japan, Mainland China, Singapore, and South Korea, within its segments.
• Ferrari's volumes have historically proven less volatile than competitors, attributed to its controlled volume strategy, broader product portfolio, and more frequent product launches.
• The company's emphasis on high residual value for its cars significantly exceeds other brands in the luxury car segment, providing a strong competitive advantage and supporting client loyalty.
• Ferrari's in-house production of strategic components like engines and its own foundry operations differentiate it from most low-volume car producers, accelerating product development and ensuring quality.
• The company's investment in its e-Building and e-Vortex test circuit positions it competitively for the industry's shift towards electrification, allowing for in-house development and testing of advanced technologies.
• Ferrari's achievement of LEED Platinum certification for its production processes sets a high standard for environmental sustainability within the industrial manufacturing sector, surpassing many industry peers.

Management Changes

Corporate Governance

Legal Proceedings

• The provision for legal proceedings and disputes represents management's best estimate of expenditures to settle or resolve legal proceedings and disputes, primarily related to allegations by contractual counterparties regarding violated terms of arrangements.
• Judgments in these proceedings may be issued in 2026 or beyond, and while outcomes are uncertain, any losses in excess of recorded provisions are not expected to be material to the Group's financial condition or results of operations.

Related Party Transactions

• Exor N.V. is the largest shareholder, holding approximately 21.33% of outstanding common shares and 32.32% of voting power as of February 4, 2026.
• Trust Piero Ferrari holds approximately 10.67% of outstanding common shares and 16.17% of voting power as of February 4, 2026.
• Exor, Piero Ferrari, and Trust Piero Ferrari entered into an Amended and Restated Shareholders Agreement on January 3, 2026, to consult on shareholder meeting agenda items and Board of Directors candidates.
• Transactions with Stellantis Group companies include technical cooperation agreements and services, with engine sales to Maserati S.p.A. concluding in 2024.
• Transactions with Exor Group companies (excluding Stellantis) include rental costs from Iveco S.p.A. and sponsorship revenue from Iveco S.p.A.
• Other related party transactions include purchases of Formula 1 racing car components from COXA S.p.A., consultancy services from HPE S.r.l., and a sponsorship agreement with Ferretti S.p.A.
• Sales of cars to certain members of the Board of Directors of Ferrari N.V. and Exor also occurred.
• Ferrari participated in an accelerated bookbuild offering by Exor N.V. on February 26, 2025, repurchasing 666,666 common shares for €299,999,700 as part of its share buyback program.

Stakeholder Impact

• Shareholders: Benefit from strong financial performance, increased dividend payout ratio (proposed 40% of Adjusted Net Profit), and a new €3.5 billion share repurchase program (2026-2030). The loyalty voting program may affect liquidity and control.
• Customers: Benefit from a broadened and diversified product portfolio, including new hybrid and electric models, enhanced personalization options, and exclusive driving/lifestyle experiences. Potential impact from increased costs due to regulatory compliance and tariffs.
• Employees: Benefit from a corporate culture focused on professional growth, equal opportunities, and a healthy/safe workplace, as evidenced by Equal Salary and gender equality certifications. Incentive plans are designed to align with company performance.
• Suppliers: Continued reliance on a significant number of suppliers, with efforts to manage costs and ensure quality. Cybersecurity risks for suppliers are being actively evaluated and monitored.
• Regulatory Authorities: Ferrari is subject to extensive and evolving global regulations, particularly concerning emissions, safety, and cybersecurity, requiring continuous monitoring and adaptation to maintain compliance.
• Environment: Commitment to decarbonization strategy by 2030, LEED Platinum certification, and research into sustainable materials and reduced emissions aim to mitigate environmental impact.

Next Steps

• Launch an average of four new models per year over the period from 2026 to 2030.
• Execute a new multi-year share repurchase program of approximately €3.5 billion between 2026 and 2030.
• Increase the proposed dividend payout ratio from 35% to 40% of Adjusted Net Profit starting from the 2025 annual results.
• Unveil the interior design and announce the model name of the Ferrari Luce (first full electric model) in February 2026.
• Begin shipments of the 296 Speciale and 296 Speciale A models in 2026.
• Open new Tailor Made centers in Tokyo and Los Angeles by 2027 and renew the existing center in Maranello.
• Continue construction of the new paint shop, expected to be completed in future periods.
• Monitor and adapt to evolving regulatory developments, including the European CO2 regulation review in 2026, UN regulations on brake particulate emissions and tire abrasion in 2026, and China's battery durability and emissions standards in 2026.
• The remuneration report for the year 2025 is subject to a consultative vote at the Annual General Meeting of Shareholders scheduled for April 15, 2026.
• The first tranche of the new share repurchase program, up to €250 million, is expected to end no later than May 15, 2026.
• The Board of Directors' current term of office will expire on the day of the next Annual General Meeting of Shareholders, expected to be on April 15, 2026.

Key Dates

Recommendation

Ferrari's 2025 results demonstrate exceptional financial health, with significant increases in net revenues, operating profit, net profit, and free cash flow, alongside a notable reduction in net industrial debt. The company's strategic product launches, including its first full electric model, and continued dominance in motorsport, reinforce its brand strength and innovation leadership. The planned increase in dividend payout and substantial new share repurchase program signal strong commitment to shareholder returns. While regulatory uncertainties and increased R&D costs exist, Ferrari's proactive management of these risks and its strong market position in the luxury segment suggest continued robust performance and value creation.

Keywords

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