Yahoo Finance Ferrari earnings jump on increased deliveries, higher pricing
Italian automaker Ferrari (RACE) reported a strong start to the year, as first quarter earnings highlighted the continued strength of its core, luxury clientele.
For the quarter, Ferrari reported adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of 537 million euros ($593 million), topping analyst expectations of 509.4 million euros. Ferrari’s Q1 revenue of 1.43 billion euros ($1.58 billion) beat estimates of 1.375 billion euros, up 20% higher than a year ago. Ferrari said higher volumes, richer product mix, and higher pricing from services like personalization drove results.
Ferrari CEO Benedetto Vigna called out double-digit growth across all of Ferrari’s main financial metrics, with EBITDA margin also hitting a record high 37.6%.
“Our order book already extends into 2025 with an award-winning product portfolio. We have decided to reopen orders for the Purosangue, suspended due to an initial unprecedented demand, and launched the Roma Spider to further enrich our offer,” said Vigna. “We are on track with our electrification journey on the development of both sports cars and infrastructures in Maranello”.
The Purosangue, which is Ferrari’s first-ever four-door, four-seat vehicle, will begin deliveries this quarter following a strong response after its launch late last year. Ferrari also unveiled the aforementioned Roma Spider this year and is aiming to release four new vehicles in 2023.
In Q1 shipments climbed to 3,567, a 10% increase compared to last year. The model mix contained nine gas-powered cars, and four hybrid engine models, with a sales split of 65% versus 35% respectively. Last year hybrid vehicles accounted for 22% of shipments.
Ferrari’s first full electric vehicle is expected to debut in 2025, and EVs and hybrids are expected to be the vast majority of sales for the company in the back half of the decade.
With its extremely loyal, passionate clients preferring the high-revving, race car–like sound and performance of its vehicles, Ferrari and Vigna have had to thread the needle, bringing along electrification slowly in order to placate its fans, as well as growing legislative changes in the E.U. to bring out the end of CO2 emissions. Ferrari has already ruled out full autonomy for the moment. As Vigna once said, clients buy Ferraris to drive them, not be driven around.
As for its outlook, Ferrari confirmed its full-year revenue guidance of 5.7 billion euros, with adjusted EBITDA in a range of 2.13 billion-2.18 billion euros, and an adjusted EBITDA margin of 26%. Ferrari said strong product mix and a broader product offering, with high end personalizations will drive results.
Luxury brands from Porsche and Mercedes to even Aston Martin have seen deliveries and revenues rising as luxury consumers continue to pay up high prices for what they view as exclusive, must-have products.
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Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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