Ferrari Unshaken by Tariffs, Sticks to Guidance

Ferrari maintained its annual forecast after stating that there was no major effect from the implementation of new import duties on European vehicles entering the U.S. during the second quarter.

An Italian sports car manufacturer had earlier announced intentions to address tariffs by raising prices by as much as 10% for vehicles excluding the 296, Roma, and SF90, although it warned that 50 basis points of its projected profit margin this year remained vulnerable to tariff impacts.

Nevertheless, during its update on Thursday, it mentioned that it has eliminated the tariff risk advisory following the latest agreement reached between the U.S. and the European Union. It currently anticipates reduced manufacturing expenses in the latter half of the year compared to earlier projections.

In the second quarter, income was enhanced due to a growing volume of custom orders along with the selling of more lucrative vehicles and increased sales in regions with better profit margins.

Ferrari delivered the Roma Spider, 296 GTS, and Purosangue during the period, whereas the 12Cilindri was still in the scaling-up stage, and the SF90 XX series saw higher involvement.

Shipments declined by 0.5% in Europe, the Middle East, and Africa, which are Ferrari's top two regional markets, whereas they increased by 1.2% in the Americas. Mainland China, Hong Kong, and Taiwan experienced a 1.4% drop in deliveries, while the remaining parts of the Asia-Pacific region saw a 1.9% increase.

"We remain committed to advancing innovation and expanding our range of products, which strengthens our already robust pipeline of orders," said CEO Benedetto Vigna.

Ferrari achieved a net profit of 425 million euros ($484.8 million) during the second quarter, an increase from 413 million euros recorded in the same period last year, with sales increasing by 4.4% to reach 1.79 billion euros.

It delivered 3,494 cars to buyers, which is 10 more compared to the previous year.

FactSet analysts predicted revenue of 1.83 billion euros, whereas a FactSet survey estimated shipments at 3,523 units.

Ferrari stated that it currently holds greater assurance regarding its 2025 projections, attributed to the combination of products and regions, custom options, increased sales income, and cash flow fueled by solid profit margins.

It continues to anticipate annual revenue exceeding 7 billion euros, an adjusted EBITDA of not less than 2.68 billion euros, and an adjusted EBIT of at least 2.03 billion euros.

The adjusted EBITDA margin is expected to remain above 38.3%, along with an adjusted EBIT margin of not less than 29%.

Ferrari stock dropped 5.1% to 414 euros during late trading hours in Europe.

Contact Dominic Chopping at dominic.chopping@wsj.com