Italian luxury carmaker Ferrari posted a strong 17% year-on-year increase in net profit for the first quarter of 2025, but warned that U.S. import tariffs could pose a threat to its earnings outlook for the year ahead.
The company reported a net profit of €412 million ($466.3 million) for Q1, citing robust demand and increased vehicle personalization as key drivers of growth. Despite limited growth in shipments, Ferrari said all major financial metrics saw double-digit improvements.
“Another year is off to a great start,” said CEO Benedetto Vigna. “With very few incremental shipments year on year, all key metrics recorded double-digit growth, underscoring strong profitability driven by our product mix and continued demand for personalizations.”
However, the upbeat earnings were tempered by caution surrounding U.S. trade policy. In its earnings statement, Ferrari flagged the risk of a 50 basis-point reduction in its EBIT and EBITDA margins if new U.S. tariffs on EU automobile imports take full effect.
“The (2025) guidance is subject to a potential risk of 50 basis points reduction on profitability percentage margins (EBIT and EBITDA margins), in relation to the update of the commercial policy following the introduction of import tariffs on EU cars into the USA,” the company stated.
President Donald Trump’s shifting tariff policies have disrupted global automakers, especially luxury brands reliant on transatlantic trade. In April, Trump imposed a 25% tariff on European automobile imports, prompting Ferrari in late March to raise prices on some models by 10% in an effort to offset the added costs.
While Trump issued a partial rollback of certain overlapping duties—including extra tariffs on steel and aluminum—analysts say the core automobile import tariff remains in effect, posing a continuing risk to European carmakers.
Ferrari’s 2025 financial guidance projects adjusted earnings per share of €8.6, net sales exceeding €7 billion, and EBITDA of at least €2.68 billion. The company’s ability to maintain that trajectory, however, may hinge on the evolving U.S.-EU trade environment.
Both the United States and Iran are giving conflicting messages about trying to end the conflict in the Middle East, meanwhile Pakistan has offered...
U.S. President Donald Trump said the U.S. was talking to the right people in Iran to make a deal on Tuesday (24 March), as Pakistan's Prime Min...
Pakistan offered to host talks between Iran and the U.S. to bring about an end...
Voting has ended in Denmark’s parliamentary election, with Prime Minister Mette Frederiksen seeking a third term after a campaign shaped by t...
Türkiye is pursuing a cautious approach to the escalating Middle East conflict while maintaining regional ties, President Recep Tayyip Erdoğa...
Lewis Hamilton has dismissed suggestions of friction within Ferrari after team chairman John Elkann's recent comments that he and teammate Charles Leclerc should "focus on driving and talk less".
Lewis Hamilton's first season with Ferrari has been plagued by frustrations, with a nightmare performance in Brazil. After a damaged car and another double retirement, Hamilton voiced his disappointment, reflecting on the challenges faced by the Italian team this season.
Ferrari's Lewis Hamilton, Formula One's most successful driver with seven world championships and a record 105 wins, said on Thursday he had sold his car collection and was now more into art.
Lewis Hamilton said on Thursday it could take months to get to grips with his new Ferrari and he was paying no attention to those questioning his performances.
The pilot and co-pilot of an Air Canada Express regional jet were killed after it collided with a fire truck while landing at New York's LaGuardia airport late on Sunday, in an incident that closed the airport, authorities and U.S. media said.
U.S. President Donald Trump said the U.S. was talking to the right people in Iran to make a deal on Tuesday (24 March), as Pakistan's Prime Minister offered to host peace talks between the two countries to bring about an end to the conflict.
Violent clashes broke out between police and opposition protesters in Tirana on Sunday (22 March) as demonstrators were demanding the resignation of the Albanian government following corruption allegations against the deputy prime minister.
Afghan authorities say Pakistani jets entered northern Afghanistan, while Pakistan insists its actions target terrorism, highlighting continued strain after a temporary Eid ceasefire ended.
As conflict continues to unsettle the Middle East, airlines are being forced to make difficult, fast-moving decisions - redrawing flight paths and searching for safe skies. Amid this uncertainty, Azerbaijan has emerged as a crucial gateway linking Europe and Asia.
Both the United States and Iran are giving conflicting messages about trying to end the conflict in the Middle East, meanwhile Pakistan has offered to be a mediator and a reported 15 point plan has been sent to Tehran. Welcome to AnewZ's coverage of the tensions in the Middle East.
Voting has ended in Denmark’s parliamentary election, with Prime Minister Mette Frederiksen seeking a third term after a campaign shaped by tensions with the U.S. over Greenland and mounting domestic concerns.
Eurozone private sector growth almost stalled this month, a key survey showed on Tuesday, adding to evidence that the bloc is already feeling economic fallout from the U.S. and Israeli war with Iran, with inflation rising and growth slowing.
China is raising domestic petrol and diesel prices under temporary measures to manage a sharp surge in global oil costs, aiming to support fuel suppliers while maintaining market stability during a period of heightened volatility.
Russia launched drones and missiles overnight on Tuesday at Ukraine, killing at least three people, damaging houses and triggering fires, Ukrainian officials said.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment