We came across a sharp article about the Ferrari NV by Eric Garcia on the Grillo Insights substack. In this article we will summarize Bill’s article on RACE. Shares of Ferrari NV were trading at $361.13 as of March 3. RACE’s trailing and leading P/E were 34.26 and 31.55, respectively, according to Yahoo Finance.
Ferrari NV, through its subsidiaries, is involved in the design, engineering, production, and sales of luxury performance sports cars worldwide. It offers sports, track, off-road, and street cars, as well as supercars. RACE delivered a remarkable performance in 2025, achieving 2.1 billion euros in EBIT, a 12% increase, and reaching its 2026 targets a full year ahead of schedule.
The company’s disciplined approach to volume, reflecting a modest decline of 0.8% with 13,640 deliveries, highlights its strategy of prioritizing exclusivity and long-term value over short-term growth. Six new models have been launched, expanding ICE and hybrid technologies, creating a diverse and future-ready portfolio, while personalization, representing around 20% of car revenue, highlights the resilience and purchasing power of Ferrari’s customers.
Revenues reached €7,146 million, driven by strong car and spare parts sales as well as a 22% increase in sponsorship, merchandising and brand revenues, boosted by 499P’s success in WEC 2025 and Formula 1 performance.
Ferrari’s profitability remained strong with a 29.5% EBIT margin and €2,772 million EBITDA (38.8% margin), reflecting careful cost discipline, strategic mix enrichment, and targeted investments in R&D, racing, and brand innovations. Geographical delivery trends were balanced, with Europe showing growth and China managing to maintain brand exclusivity during the model transition, while the order book extends into late 2027.
Industrial free cash flow of €1,538 million, up 50%, combined with net industrial debt of just €32 million after significant dividends and buybacks, demonstrates strong financial health and a commitment to shareholder returns.
Looking ahead, Ferrari projects €7.5 billion in revenues, a 39% EBITDA margin, and €1.5 billion in industrial free cash flow for 2026, supported by continued product mix development, personalization, and new model ramps, including the historic Ferrari Luce electric sports car. With disciplined execution, strong cash generation, and a fresh, diverse lineup, Ferrari presents a compelling case for long-term investors seeking ultra-premium exposure with the potential for sustainable growth and strong capital returns.
(translating tags) Ferrari
