Ferrari (RACE) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached €1.644 billion, up 6.5%–7% year-over-year, with adjusted EBIT of €467–470 million (28.4% margin) and net profit of €375 million.

• Industrial free cash flow was €364 million, supported by strong order intake, high demand for new models, and positive working capital.

• Order book remains robust with visibility into 2026, driven by launches like 12Cilindri and F80, which is fully allocated.

• CEO highlighted increased personalizations, ongoing innovation, and strong brand momentum, with record attendance at events and museums.

• Progress toward carbon neutrality with trigenerator shutdown and e-building inauguration.

Financial highlights

• Net revenues for Q3 2024 were €1.644 billion, up 6.5% year-over-year, despite a 2.2% drop in shipments due to deliberate geographic allocations and ERP transition.

• Adjusted EBIT rose 10.3% to €467 million (28.4% margin); adjusted EBITDA increased 7.1% to €638 million (38.8% margin).

• Net profit reached €375 million; adjusted diluted EPS was €2.08, up 14% year-over-year.

• Industrial free cash flow was €364 million, up 20.5% year-over-year.

• Net industrial debt decreased to €246 million after €147 million in share repurchases; liquidity stood at €2.079 billion.

Outlook and guidance

• 2024 guidance raised: net revenues expected above €6.55 billion, adjusted EBIT ≥€1.82 billion (≥27.5% margin), adjusted EBITDA ≥€2.5 billion (≥38% margin), industrial FCF up to €950 million.

• Guidance assumes positive product/country mix, increased personalizations, and higher lifestyle contributions.

• Q4 will see incremental OpEx from racing and lifestyle activities, persistent inflation, and higher D&A from digital initiatives.

• Full-year industrial free cash flow expected to be impacted by higher CapEx and taxes.

• Confidence in guidance is based on robust cash flow and strong order book visibility.