According to its CEO, demand for Ferrari's supercars in the U.S. remains "hot" despite rising prices to offset Donald Trump's tariffs.
The Italian group has a 25% tariff on Trump's foreign-made cars because it makes all cars in Italy, even if the United States is its largest market and is the place where about a quarter of cars are sold. But the luxury car maker also has enough brand strength to pass on tariff costs to consumers.
The company said Tuesday it did not cancel in its order book (already covered the entire 2026) even after announcing plans to increase the price of some of its models in March.
"Today, we don't see any weaknesses in order books," said CEO Benedetto Vigna. "When it comes to tariffs, I think the order books and portfolios we allow us to navigate with better visibility."
Ferrari reported operating profit in the first quarter rose 23% year-on-year, while revenue rose 13% to 1.79 billion euros. Both indicators exceed market expectations and reflect on the ongoing demand for personalization, and buyers add expensive features to supercars.
Although many other automakers have withdrawn or significantly lowered guidance in the past week, Ferrari's previous forecasts have broadly adhered to its adjusted operating profit of at least €20 billion, with a profit margin of at least 29%.
The guidance warns that the guidance faces the potential risk of lowering margins by 50 basis points.
"Ferrari stood out, reported first-quarter results for consensus and confidently reaffirmed its guidance for fiscal 2025," Bernstein analysts wrote.
Even though the goods only increased to 1% from the same period last year, the company still managed to generate higher profit margins. The team offered five hybrid models in the first quarter, accounting for 49% of total shipments.
In the first three months of the year, shipments to China, Hong Kong and Taiwan fell 25% as luxury car brands continue to struggle to cope with slowing demand in China.
But China represents a relatively small market for Ferrari, as the automaker sets a 10% cap on delivery to the country.
Vigna said Tuesday that the company is also expected to launch its first electric vehicle in October, with sales starting a year later in 2026.