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Ferrari (RACE) reported a first quarter earnings beat before the bell on Tuesday as the Italian automaker’s luxury consumers bucked tension in the Middle East by selling more in other regions. The report comes as President Trump renews a tariff threat on the European Union.
Ferrari reported Q1 revenue of 1.85 billion euros ($2.17 billion) vs 1.82 billion euros expected per Bloomberg consensus, up 3% compared to a year ago. Ferrari posted diluted EPS of 2.33 euros ($2.73) vs 2.30 euros expected, and EBITDA of 722 million euros ($845.4 million), up 4% compared to last year.
Ferrari’s EBITDA margin hit an industry leading 39.1%, and the company also confirmed its prior guidance for 2026.
Ferrari said global sales fell slightly last year to 13,640 units, which the company said was a deliberate move due to “significant model change-over, that will continue in 2026. Ferrari expects to reveal four new models in 2026 and its first EV, the Luce.
“Our enriched mix and continued demand for personalizations contributed to the strong earnings we are presenting today. With these results and an order book further extending towards the end of 2027, we confirm our 2026 guidance”, Ferrari CEO Benedetto Vigna said in a statement.
For 2026, Ferrari projects revenue of about 7.5 billion euros ($8.78 billion), up 5% from a year ago, with adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) expected at 2.93 billion euros ($3.43 billion).
In its statement Ferrari said its performance came “notwithstanding the ongoing geopolitical situation.”
Ferrari’s earnings report comes as the Middle East — an important region for Ferrari sales — is buckling under the strain of the US-Israel war with Iran, but Ferrari says it is managing the situation.
“Total deliveries were not impacted by the surge of hostilities in the Middle East, as Ferrari leveraged its geographical allocation flexibility, bringing forward certain deliveries to other regions,” the company said. “In the quarter deliveries of the 12Cilindri family, the Purosangue and the SF90 XX family increased, while the 296 family and the Roma Spider decreased in line with model lifecycles.”
For the quarter, Ferrari said shipments came in at 3,436 units, down slightly to the 3,593 reported last year, but revenue was higher due to more sports cars in the mix, and higher personalizations.
Read more: Live coverage of corporate earnings
Ferrari will debut the Luce in Rome later this month. Earlier this year, the company gave a preview of Luce’s interior design, which favored physical buttons and dials, as well as a touchscreen with buttons.
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Former Apple designer Jony Ive and his LoveFrom agency were behind the Luce’s interior design. The Luce creates another product line for Ferrari, one that may capture a new audience who favor tech and a differentiated powertrain, but may impact the automaker’s brand known for pure, analog performance.
Luce sales are expected to begin in late 2026.
Ferrari must maintain momentum with these new releases in 2026 against the backdrop of another resurfaced threat: tariffs.
Last week, President Trump said he would raise tariffs on cars and trucks from the EU to 25%, claiming EU regulators were not holding up their end of the deal that saw US tariffs on EU autos of 15%. Last April, Trump slapped large tariffs on many US trade partners, but many of those duties were invalidated by the Supreme Court.
While Ferrari said tariffs did impact its performance in Q1, the company did not provide an amount; the company also puts a tariff line item in its customer invoices to show how much they are paying in tariffs which is unlike other automakers.
Ferrari did not mention any effect of Trump’s heightened EU tariff theat in its release.
Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on X and on Instagram.
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