Ferrari Reports Strong First-Quarter Profit Growth, Flags Potential Impact from US Tariffs

Luxury automaker Ferrari posted a solid increase in first-quarter earnings on Tuesday, driven by continued demand for its high-end, customizable vehicles.

However, the company cautioned that newly introduced US tariffs on European Union car imports could present a challenge to profitability later this year.

The Maranello-based manufacturer reported net profit of €412 million ($466.3 million) for the first three months of 2025, marking a 17% increase from the same period a year earlier. The results slightly exceeded analyst expectations and came alongside a 13% rise in revenue to €1.79 billion ($2.03 billion), despite global vehicle shipments rising by less than 1% to 3,593 units.

Ferrari attributed the earnings growth to a favorable product mix and a strong increase in personalization options requested by customers. CEO Benedetto Vigna called it a “great start” to the year and noted that all key financial metrics saw double-digit growth, even with minimal changes in delivery volumes.

The automaker maintained its full-year guidance, which includes projected revenue of over €7 billion, adjusted EBITDA of at least €2.68 billion ($3.04 billion), and adjusted earnings per share of €8.60 ($9.74). Adjusted EBITDA and EBIT margins were reaffirmed at 38.3% and 29%, respectively.

However, Ferrari warned that the US administration’s new trade policy could trim its margins by 50 basis points. A 25% import tariff on EU-made vehicles went into effect earlier this month. While efforts are underway in Washington to mitigate the stacking of duties, the potential impact remains uncertain.

To offset the tariff-related pressure, Ferrari said it would implement price increases of up to 10% on some models. These adjustments could add as much as $50,000 to the price of a new Ferrari in the US market. The company reiterated that its pricing strategy excludes certain core models like the 296, Roma, and SF90.

Despite the geopolitical uncertainty, Ferrari continued to see regional strength in Europe, the Middle East, and Africa, where shipments rose by 8%. Sales in the Americas increased by 3%. However, deliveries declined in several Asia-Pacific markets, with mainland China, Hong Kong, and Taiwan posting a 25% drop.

Ferrari’s shares saw a slight dip following the announcement, with Milan-listed shares down around 0.3% and US-listed shares trading marginally lower.

With input from CNBC and the Wall Street Journal.