Ferrari ($RACE (-1,63 %)) is not a car manufacturer. Ferrari is a brand that transforms emotion into margins.
Italy's most valuable company stands for exclusivity, engineering skill and profitability at luxury level.
⚙️ What does Ferrari do?
➡️ Core competence: Development & production of luxury sports cars - combines motorsport DNA with modern technology and craftsmanship.
➡️ Segments: Cars & Spare Parts (road cars, spare parts) | Sponsorship & Brand (F1, merch, licenses) | Engines (for third parties, discontinued).
➡️ Regions: EMEA 46%, Americas 32%, Asia 22%.
➡️ Strategy: Limited production (~14,000 vehicles/year) → artificial scarcity → pricing power like LVMH.
💰 Figures & growth (Q2 2025)
📈 Turnover: € 1,787 million (+ 4.4% YoY)
📈 EBIT: € 552 million (+ 8.1%) → EBIT margin 30.9%
EBITDA: € 709 million (+ 5.9%) → EBITDA margin 39.7%
📈 Net profit: € 425 million (+ 2.9%)
📈 Free cash flow: € 317 million (+ 12%)
💡 Gross margin ≈ 52% | R&D ratio 6% | Net cash ≈ € 1 billion
📊 Valuation: EV/Sales ≈ 9 | P/E ratio ≈ 45 | P/B ratio ≈ 10
Rule of Luxury: Margins > 30% = absolute exception in the automotive sector 🚗💎
🟢 The opportunities
🟢 Brand power & exclusivity: Limited production creates scarcity → Luxury narrative instead of car narrative.
🟢 Pricing power: EBIT margin > 30% - comparable to Hermès & LVMH.
🟢 Tailor-made programs: Personalization (Atelier Ferrari) → high additional margins, low customer loyalty.
🟢 Hybrid offensive: > 20% hybrid share → first e-model 2026.
🟢 Formula 1 & brand power: Globally strongest car brand - every F1 win = marketing campaign.
🟢 Recurring revenue: Merch, Lifestyle, Ferrari Classiche secure steady sources of income.
🔴 The risks
🔴 Cyclicality & macro: Luxury demand dependent on wealth & economy.
🔴 Valuation: P/E ratio 45 - any decline in margins can be heavily penalized.
🔴 Technological change: E-mobility must not destroy the myth of the "Ferrari feeling".
🔴 Product mix: High dependence on a few models (SF90, 296, Purosangue).
🔴 Geopolitics: USA/China → tariffs, currencies, import requirements.
🔴 Luxury = expectation: Any quality defect → Reputational risk.
🔍 Conclusion & outlook
Ferrari remains the benchmark in the luxury car sector.
A company that turns exclusivity into margins - cyclical in the short term, structurally strong in the long term.
🎯 Long-term target 2030: turnover € 9 billion | EBIT margin ≥ 30%
🔋 First fully electric model 2026 | > 60% hybrid by 2030
🏁 New growth drivers: Icona, Purosangue, EV-Line
💬 Community question:
Ferrari - fairly valued for the next luxury cycle or already too expensive for 2026?
Here is a photo from my summer vacation, where I visited Ferrari World in Abu Dhabi.
