Ferrari has increased its profit outlook for the full year, driven by the strong performance of its more expensive models and a surge in demand for personalized vehicles. The luxury car manufacturer now anticipates adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) to reach at least $2.50 billion this year, an increase from its previous forecast of at least $2.45 billion. This positive revision comes after Ferrari significantly beat second-quarter results forecasts.
CEO Benedetto Vigna stated that the company's net revenues and profitability experienced double-digit growth, bolstered by an enriched product mix and heightened demand for personalization. This led directly to the upgraded 2024 guidance. Following the announcement, Ferrari's Milan-listed shares climbed by 5.1%.
Bernstein analysts lauded the results, noting that Ferrari "handsomely beat today pretty much across the board," reinforcing its unique position in the market. Ferrari's second-quarter adjusted EBITDA rose by 14% to $669 million, surpassing the average analyst forecast of $650 million. The company also generated $121 million in cash during the quarter. Pricing power alone contributed $122 million to quarterly earnings, primarily due to demand for high-value models like the $2 million, 12-cylinder Daytona SP3, and a few sales of the $5.1 million track-only 499P Modificata.
Other contributing factors to Ferrari's success included sales of the Purosangue four-seater and initial deliveries of the SF90 XX Stradale hybrid. Customer demand for extensive personalization, both interior and exterior, significantly boosted results, as did a robust performance in the Americas. In 2023, personalization options, mainly paintwork, liveries, and carbon fiber use, accounted for approximately 19% of Ferrari's $6 billion revenue.
In contrast, rival Porsche recently cut its sales and profit guidance due to an unexpected aluminum alloy supply shortage, negatively impacting its shares, highlighting Ferrari's distinctive market resilience.
