Ferrari (RACE) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues reached €1.85 billion, up 3% year-over-year (6% at constant currency), with EBITDA at €722 million and industrial free cash flow above €650 million, reflecting strong product mix, high personalizations, and business model flexibility amid geopolitical instability.

• The order book extends into late 2027, supported by major product launches such as the Amalfi Spider and anticipation for the Ferrari Luce, with high client engagement and overbooked attendance for the upcoming reveal.

• Racing and lifestyle activities contributed positively, with new flagship store openings in London, podium finishes in motorsport, and increased sponsorship and licensing revenues.

Financial highlights

• Revenues grew 3.2% year-over-year to €1,848 million; at constant currency, growth was 6.0%.

• EBITDA margin was 39.1% (up 4% year-over-year), and EBIT margin was 29.7% (up 1% year-over-year), both strong despite FX impacts.

• Industrial free cash flow reached €653 million, up 5.5% year-over-year, with cash conversion above 90%.

• Net industrial cash position at quarter-end was €388 million, after share repurchases and dividend approval.

• Dividend distribution of ~€640 million and ongoing share buyback to impact Q2 net financial position.

Outlook and guidance

• Full-year 2026 guidance confirmed: net revenues ~€7.5 billion, adjusted EBITDA margin ≥39%, adjusted EBIT margin ≥29.5%, adjusted diluted EPS ≥€9.45, and industrial free cash flow ≥€1.5 billion.

• Profitability expected to be more evenly spread between H1 and H2 due to adjusted product and country mix.

• Guidance assumes continued management of Middle East crisis impacts, positive product mix, higher racing revenues, and ongoing investments in product development, racing, and digital transformation.

• No significant supply chain or inflationary pressures anticipated; cost headwinds from FX (~€200 million) are expected but offset by mix and pricing.

• Order book extends into late 2027, supporting confidence in future performance.