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Ferrari lifts annual forecasts as quarterly profit rises

Ferrari raised its annual financial forecasts after third-quarter revenue reached 1.896 billion euros and operating profit rose to 563 million euros. The Italian carmaker attributed the improvement to its product mix and personalisation, even as deliveries declined. Industrial free cash flow increased, and the company said its order book now extended into 2028.

Economics & Markets··Morning
Ferrari sports cars in different colours inside a bright personalisation workshop, with a stitched leather interior and upholstery samples on nearby benches.

Personalisation supports the annual forecast increase

Ferrari, the Italian sports-car manufacturer, raised its annual financial forecasts after announcing third-quarter results on 3 November. Product mix and personalisation supported the improvement. Its quarterly revenue and core profit exceeded market expectations.[1], [2]

The preliminary unaudited results showed revenue of 1.896 billion euros, compared with 1.766 billion euros a year earlier: growth of 7 per cent as reported and 10 per cent at constant currencies. Deliveries decreased from 3,401 to 3,368 cars during the planned model changeover. Cars and spare parts generated 1.586 billion euros of revenue.[1]

Operating margin expands to 29.7 per cent

Operating profit rose from 503 million euros to 563 million euros and the operating margin widened from 28.4 per cent to 29.7 per cent. Net profit increased from 382 million euros to 431 million euros. Management attributed the operating improvement chiefly to a richer product mix and personalisation, partly offset by higher depreciation, amortisation and marketing expenses.[1]

Cash generation rises as orders extend into 2028

Industrial free cash flow increased from 396 million euros to 567 million euros, supported by profitability and favourable working-capital changes. Ferrari raised its annual revenue forecast from approximately 7.60 billion euros to 7.65 billion euros. It now projects adjusted operating profit of at least 2.285 billion euros and adjusted diluted earnings of at least 9.85 euros per share. Its order book extends into 2028.[1]

References

  1. News sourceFerrari N.V.Ferrari increases profit despite fewer deliveries↩1↩2↩3↩4
  2. News sourceReutersFerrari lifts annual forecasts after third-quarter results↩
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