By Dominic Chopping


Ferrari expects revenue and earnings to rise this year after it reported a strong end to 2024 thanks to growing demand for customized vehicles as well as its strong line-up of luxury sports models.

The Italian sports-car maker reported revenue of 1.74 billion euros ($1.8 billion) in the fourth quarter, up 14% on year as it shipped 3,325 vehicles to customers--80 more than a year earlier. Analysts polled by FactSet had forecast 1.65 billion euros in revenue, while shipments were seen at 3,333 units, according to LSEG Refinitiv data.

Chief Executive Benedetto Vigna said 2024 was marked by a focus on the quality of revenue rather than volumes, as the company reported a sharp rise in profitability thanks to sales of higher-margin cars in higher-margin countries.

"On these solid foundations, we expect further robust growth in 2025, that will allow us to reach one year in advance the high-end of most of our profitability targets for 2026" he said in a statement.

Ferrari shares in Milan traded 3.8% higher in afternoon European trade.

Fourth-quarter shipments rose by 4% in Europe, the Middle East and Africa and by 8% in the Americas, Ferrari's two largest regional markets. Mainland China, Hong Kong and Taiwan logged a 21% contraction in shipments, while the rest of Asia-Pacific recorded 5% growth.

European auto makers have faced a torrid time of late as they grapple with intense competition in China, where local manufacturers have been launching new models at aggressive price points while economic challenges have seen consumers pare back on high-end spending. But Ferrari has been sheltered from the turmoil thanks to its limited exposure to China and its ability to maintain margins as it sells to more exclusive customers than ordinary manufacturers.

In China, sports cars are a smaller part of the luxury market than other regions. Ferrari wants to keep sales in the country below 10% of its overall deliveries as it is a lower-margin region due to high taxes.

Mainland China, Hong Kong and Taiwan accounted for only around 8% of the company's global car shipments in 2024.

Analysts also expect Ferrari to weather any trade charges levied on European imports into the U.S., should President Trump follow through with threats to hit the EU with tariffs.

Ferraris are exclusively produced in Italy, so all of its cars for the U.S. market are imports, but analysts at Bernstein say the company is protected by its strong pricing power.

Net profit in the quarter grew to 386 million euros from 294 million euros, ahead of the 335 million euros analysts had forecast.

Earnings before interest, taxes, depreciation, and amortization rose to 643 million euros from 558 million euros, generating a 37.0% margin. Meanwhile, earnings before interest and taxes increased to 468 million euros from 372 million euros, generating a 27.0% margin.

Analysts had forecast Ebitda of 631 million euros and EBIT of 442 million euros.

Ferrari set its full-year 2025 revenue target at more than 7 billion euros, after achieving 2024 revenue of 6.68 billion euros.

The company is targeting 2025 adjusted Ebitda of at least 2.68 billion euros, from 2.56 billion euros in 2024, with a margin of at least 38.3%. Its 2025 EBIT target is for at least 2.03 billion euros, from 1.89 billion euros, with a margin of at least 29.0%.

If successful, most metrics would land above the 2026 targets it laid out more than two years ago.


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

02-04-25 0852ET