• Revenue: Approximately EUR6.7 billion, with double-digit growth versus the previous year.
• Net Profit: EUR1.5 billion.
• EBITDA Margin: 38.3%.
• EBIT Margin: 28.3%.
• Diluted EPS: EUR8.46, up 22.6% versus the prior year.
• Industrial Free Cash Flow: Surpassing EUR1 billion for the first time.
• Capital Expenditure: Approximately EUR990 million.
• Shipments: Increased by 89 units compared to the prior year.
• Hybrid Share: Reached 51% of shipments.
• Personalizations: Accounted for approximately 20% of revenues from cars and spare parts.
• Net Industrial Debt: EUR180 million at the end of December 2024.

• Warning! GuruFocus has detected 4 Warning Sign with RACE.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ferrari NV (NYSE:RACE) achieved record financial results in 2024, with revenues reaching approximately EUR6.7 billion, marking double-digit growth compared to the previous year.
• The company successfully launched three new models in 2024, including the supercar F80, which showcases significant technology transfer from racing to sports cars.
• Ferrari NV (NYSE:RACE) reported a net profit of EUR1.5 billion and an industrial free cash flow generation surpassing EUR1 billion for the first time.
• The company's personalization options continue to strengthen, contributing approximately 20% of revenues from cars and spare parts.
• Ferrari NV (NYSE:RACE) is on track with its electrification journey, with significant advancements in battery models and electric components developed in-house at Maranello.

Negative Points

• The company faces ongoing supply chain challenges, particularly with suppliers affected by lower demand from larger OEMs.
• Despite strong financial performance, Ferrari NV (NYSE:RACE) anticipates a higher effective tax rate of around 22.5% in 2025, up from 19.2% in 2024.
• The depreciation and amortization (D&A) expenses are expected to be lower in 2025, which may impact the company's financial flexibility.
• Concerns were raised about the potential for over-personalization affecting residual values, although Ferrari NV (NYSE:RACE) is addressing this by advising clients on customization choices.
• The company plans to launch six new models in 2025, raising questions about potential market saturation and customer confusion with too many new offerings in a single year.

Q & A Highlights

Q: Can you clarify the model rollout for 2025, given the launch of six new models? Are you concerned about launching too many models in one year? A: Benedetto Vigna, CEO: We are always pushing for new clients, and this applies to both thermal and hybrid cars. The six new models are strategically positioned to cater to different client segments, such as special versions and limited editions. Our strategy is to offer a diverse range of models rather than a few high-volume ones, aligning with our luxury brand positioning.

Q: How does the product mix impact your P&L, especially given the strong mix in 2024? A: Antonio Piccon, CFO: The mix includes product, country, and personalization contributions. In 2024, the mix was strong due to the full deployment of Daytona deliveries and personalization, which reached 20% of revenues. However, cost inflation offset some of the pricing benefits. In 2025, the mix will continue to be positive, supported by special series and range models.

Q: Can you confirm the price increase for the Purosangue and discuss the customer profile for the 12Cilindri? A: Benedetto Vigna, CEO: Yes, there is a planned price increase for the Purosangue starting January 1, 2025. For the 12Cilindri, we see strong traction with a balanced order intake between Coupe and Spider models. Approximately 20% of orders are from new clients, with an average age of 40-45 years.

Q: What are your expectations for the hybrid share in 2025, and how do you plan to offset the departure of the F80 in future years? A: Antonio Piccon, CFO: We expect the hybrid share to be slightly lower in 2025 due to the delivery of the 12Cilindri. As for the F80, we have a strategic plan to support our ambitions beyond its production, which will be discussed in detail at our Capital Market Day in October.

Q: How do you address concerns about residual values and personalization affecting resale value? A: Benedetto Vigna, CEO: We advise clients on personalization to maintain brand identity, but ultimately, clients have the freedom to choose. While some combinations may not appeal to second buyers, we focus on offering a range of personalization options that align with Ferrari's values. We continue to monitor residual values and adjust strategies as needed.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.