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.
A 29-year-old man has been arrested in connection with a devastating wildfire that killed 12 people and destroyed thousands of homes in Los Angeles ea...
More than 200 health facilities in war-hit eastern Congo have run out of medicines due to widespread looting and supply chain disruptions during fight...
Iran's Foreign Minister Abbas Araghchi rejected as “incorrect” the report by a Kuwaiti newspaper on recent contacts between Tehran and Washington ...
The 7th Moscow Format Consultations on Afghanistan has concluded in Russia with participants issuing a joint statement heavily hinting at a joint oppo...
Former FBI Director James Comey pleaded not guilty on Wednesday to criminal charges, and his lawyer said he would file a barrage of legal challenges t...
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.
Vintage sports cars showcased at the Grand Palais in Paris are set to be auctioned. Rare models are expected to fetch millions, drawing the attention of car enthusiasts.
Video from the USGS (United States Geological Survey) showed on Friday (19 September) the Kilauea volcano in Hawaii erupting and spewing lava.
At least eight people have died and more than 90 others were injured following a catastrophic gas tanker explosion on a major highway in Mexico City’s Iztapalapa district on Wednesday, authorities confirmed.
At least 69 people have died and almost 150 injured following a powerful 6.9-magnitude earthquake off the coast of Cebu City in the central Visayas region of the Philippines, officials said, making it one of the country’s deadliest disasters this year.
A powerful 7.4-magnitude earthquake struck off Russia’s Kamchatka Peninsula on 13 September with no tsunami threat, coming just weeks after the region endured a devastating 8.8-magnitude quake — the strongest since 1952.
Authorities in California have identified the dismembered body discovered in a Tesla registered to singer D4vd as 15-year-old Celeste Rivas Hernandez, who had been missing from Lake Elsinore since April 2024.
Russian President Vladimir Putin arrived in Tajikistan on Wednesday for a series of meetings with leaders of former Soviet republics focused on regional cooperation and Moscow’s influence in Central Asia.
Escalating gang violence in Haiti has displaced 680,000 children, nearly twice as many as last year, as armed groups seize more territory and basic services collapse, UNICEF warned on Wednesday.
A 29-year-old man has been arrested in connection with a devastating wildfire that killed 12 people and destroyed thousands of homes in Los Angeles earlier this year.
The 7th Moscow Format Consultations on Afghanistan has concluded in Russia with participants issuing a joint statement heavily hinting at a joint opposition to any foreign military infrastructure in Afghanistan.
Former FBI Director James Comey pleaded not guilty on Wednesday to criminal charges, and his lawyer said he would file a barrage of legal challenges to the first prosecution by the Justice Department against one of President Donald Trump's political enemies.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment