The traditional automotive industry is in chaos, but it seems this does not affect Ferrari, the legendary Italian manufacturer of luxury sports cars. This company is expected to once again increase its profit in 2025.
The idea that Ferrari calmly strides forward, rising above economic downturns, trade wars, and potholes, might seem contradictory given the recognizable sound of its V-12 engine.
However, in 2025, Ferrari’s first electric sports car could do exactly that. Appear in the rearview mirror and disappear in silence.
Profit growth
Ferrari’s profit increased last year to 2.56 billion euros (2.67 billion dollars).
This is a modest increase compared to EBITDA (earnings before interest, taxes, depreciation, and amortization) of 2.28 billion euros (2.37 billion dollars) in 2023.
It is also a slight increase compared to the forecasted 2.45 billion euros (2.55 billion dollars). Ferrari announced that its order book is full until 2026. And the entire production series of the 799 F80 supercar, priced at 3.6 million euros (3.75 million dollars), is already sold out.
“We are not transitioning to electric vehicles, but we see this as working on an electric addition,” said the company’s CEO Benedetto Vigna at the presentation of the financial results for 2024.
The electric model will be launched as planned on October 9th. It is expected to cost more than 500.000 euros (520.000 dollars).
This year, five more new models will be launched, including a pure gasoline model, gasoline hybrids, plug-in hybrids, and now electric models.
What do analysts say?
Analysts were impressed and expect continued profit growth in the foreseeable future.
“We still consider Ferrari a uniquely positioned, defensive company with orders until the end of 2026, and capable of achieving high single-digit revenue growth and double-digit profit growth with relatively low revenue volatility,” said the investment bank Morgan Stanley.
Morgan Stanley recommends Ferrari as an investment with a rating of “overweight.”
Bernstein, in a report titled “Setting a new baseline for profitability,” states that high-profit margins will become even higher.
A year ago, Ferrari said it was increasingly confident in achieving the upper end of its 2026 margin target of 27-30 percent.
Ferrari’s forecast for 2025 already shows a margin of around 29 percent. Given that all planned units of the F80 model will be delivered in 2026, the upper margin target of 30 percent seems even more attainable, Bernstein’s report states.
Bernstein rates Ferrari as a stock that will “outperform” the market.
Praise was also joined by the investment bank UBS. In its report, it was highlighted that Ferrari, unusually, expects the first half of 2025 to be more positive than usual.
Ferrari’s results once again proved the strength of its brand and business model. Demand for luxury models still exceeds supply, despite macroeconomic conditions, UBS stated.
For the first half of the year, a reduction in risk is predicted, while the second half leaves room for potential (positive) surprises. The launch of new models could be a catalyst, and the most important is Capital Markets Day on October 9th, when the next mid-term plan will be revealed, along with the long-awaited “Ferrari electric,” UBS states.
UBS rates Ferrari with a “buy” rating.
New production line
In 2024, Ferrari opened a new production line at its headquarters in Maranello, Italy.
It specifically emphasized that this does not mean a change in its long-standing policy of never producing enough loud, mysterious sports cars for the super-rich to meet demand.
Ferrari stated that the expansion will provide an additional production line to improve production efficiency, not to drastically increase production.
The new facility reportedly cost about 200 million euros (208 million dollars). Ferrari’s management denied reports that this would enable annual sales of around 20.000 vehicles, compared to 14.000 in 2023.
