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    Home » Ferrari Kicks Off 2025 with Strong Profit – Warns of Tariff Risks
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    Ferrari Kicks Off 2025 with Strong Profit – Warns of Tariff Risks

    Richard ParksBy Richard ParksMay 7, 2025No Comments3 Mins Read
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    Ferrari Kicks Off 2025 with Strong Profit – Warns of Tariff Risks
    Ferrari Kicks Off 2025 with Strong Profit – Warns of Tariff Risks
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    Ferrari’s first-quarter results for 2025 showed a solid performance, with the company posting a 17% increase in net profit, reaching €412 million. This figure slightly exceeded analysts’ expectations. Revenue also rose by 13%, totaling €1.8 billion, with the main driver being the continued strong demand for customised vehicles.

    Key Drivers Behind Growth

    CEO Benedetto Vigna noted that, despite only a minimal year-on-year growth in shipments, all key metrics showed double-digit increases. The company’s core car-making segment experienced a significant boost, with revenue increasing by 11.1%. Personalisation options for vehicles played a major role in this uptick.

    Shipments rose by a modest 0.9%, with strong demand coming from Europe, the Middle East, and Africa (EMEA) as well as the United States. However, Ferrari saw a decline in deliveries to Mainland China, Hong Kong, and Taiwan during the quarter.

    Brand and Sponsorship Revenues Surge

    Ferrari’s commercial activities also showed impressive growth. Revenue from sponsorship, commercial partnerships, and brand-related activities surged by 32.1%. This expansion reflects the brand’s strong global presence and the continued appeal of its luxury image.

    Positive Full-Year Forecast, But Risks Ahead

    Looking ahead, Ferrari remains optimistic about its full-year performance. The company expects total revenue for 2025 to surpass €7 billion, reflecting a 5% increase. Adjusted operating profit is forecasted to exceed €2.03 billion, marking a growth of at least 7%.

    Despite this positive outlook, Ferrari highlighted potential risks that could impact its profitability. The company warned that new U.S. import tariffs on European-made vehicles may put pressure on its margins. These tariffs could lower its EBIT (earnings before interest and tax) and EBITDA (earnings before interest, tax, depreciation, and amortisation) margins by around 50 basis points.

    In response to these risks, Ferrari had already raised prices on select models by up to 10% in March due to former U.S. President Trump’s 25% tariffs on European imports.

    Exciting New Model Launches Ahead

    Ferrari’s future product lineup looks promising. The company is set to launch six new models in 2025, including the 296 Speciale and 296 Speciale A. The brand’s first-ever electric vehicle, the Ferrari Elettrica, is also highly anticipated. These new releases are expected to drive additional growth and bolster Ferrari’s market position in the coming years.

    Following the release of its strong quarterly results, Ferrari’s stock rose by 1.8% on Euronext Milan by 4:30 p.m. CEST, reflecting investor confidence in the brand’s ongoing success.

    Ferrari’s first-quarter results for 2025 demonstrate the brand’s resilience, driven by the growing demand for personalised vehicles and increased commercial revenues. While challenges like trade risks remain, Ferrari’s strategic plans for new model launches and its solid market positioning put it in a strong position to continue its upward trajectory this year.

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    Richard Parks
    Richard Parks
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    Richard Parks is a dedicated news reporter at EuroNews24., known for his in-depth analysis and clear reporting on general news. With years of experience, Richard covers a broad spectrum of topics, ensuring readers stay updated on the latest developments.

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