Ferrari Shares Plunge as Long-Term Targets Disappoint — Update

By Dominic Chopping

Ferrari shares slumped Thursday after new long-term profitability targets missed expectations.

Shares were 15% lower in afternoon trade.

The Italian luxury sports-car maker nudged its full-year financial expectations higher at an investor event in Italy while setting new financial targets for the end of the decade.

It said it expects net revenue to grow at 5% a year over the next five years, driven by its model lineup, including limited-edition models, and car customizations. Volumes will positively contribute, but to a lesser extent, it said.

Full-year adjusted earnings before interest and tax is now expected to reach at least 2.06 billion euros ($2.4 billion) from at least 2.03 billion euros previously, before hitting at least 2.75 billion euros in 2030.

Full-year margin guidance of at least 29% was left unchanged, with a figure of at least 30% expected in 2030.

The guidance implies that EBIT will grow at 6% a year through the end of the decade, well below the 10%-a-year that was implied by the company at its 2022 investor event when it gave its 2022 to 2026 forecast, RBC Capital Markets analyst Tom Narayan said in a note to clients.

"The 6% compound annual growth rate is likely conservative, but investors are likely to interpret a downshift in EBIT growth from prior history," he said.

The comments on volume growth are also weaker than expected, especially as Ferrari has increased capacity after inaugurating a new factory, and volumes are needed to keep the customer wait list from getting too long, Narayan adds.

"We think the 2030 guidance coming in below expectations will push shares lower today."

The news comes as Ferrari scaled back it electric-vehicle ambitions while guiding to a model lineup that will include a greater share of combustion engine models compared to previous forecasts.

Around 20% of its model lineup in 2030 will be fully-electric, marking a sharp cut to the 40% it presented in its previous plan.

Combustion engines are expected to make up 40% of its 2030 lineup, a greater share than the 20% it targeted at the 2022 investor day, with the share of hybrid models still expected at 40%.

Ferrari on Thursday revealed the first details of its first fully-electric car, the Elettrica, which is expected to launch next year. It plans to launch an average of four new cars a year between 2026 and 2030.

Ferrari now expects to report net revenue of at least 7.1 billion euros this year, up from 7 billion euros previously, and rising to around 9 billion euros in 2030.

Adjusted earnings before interest, taxes, depreciation and amortization is now expected to reach at least 2.72 billion euros, from at least 2.68 billion euros previously, before hitting at least 3.6 billion euros in 2030. Full-year margin guidance of at least 38.3% was left unchanged, with a figure of at least 40% expected in 2030.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

October 09, 2025 07:35 ET (11:35 GMT)