We came across a bullish thesis on Ferrari N.V. on Grillo Insights’s Substack by Eric García. In this article, we will summarize the bulls’ thesis on RACE. Ferrari N.V.’s share was trading at $361.13 as of March 3rd. RACE’s trailing and forward P/E were 34.26 and 31.55, respectively according to Yahoo Finance.
Ferrari N.V., through its subsidiaries, engages in the design, engineering, production, and sale of luxury performance sports cars worldwide. It offers sports, track, one-off, and road cars, as well as supercars. RACE delivered a landmark performance in 2025, achieving €2.1 billion in EBIT, up 12%, and hitting its 2026 targets a full year ahead of schedule.
The company’s disciplined approach to volume, with 13,640 deliveries reflecting a modest 0.8% decline, underscores its strategy of prioritizing exclusivity and long-term value over short-term growth. Six new model launches, spanning ICE and hybrid technologies, establish a diversified and future-ready portfolio, while personalizations, representing roughly 20% of car revenues, highlight the resilience and purchasing power of Ferrari’s clientele.
Revenues reached €7,146 million, driven by strong car and spare parts sales as well as a 22% increase in sponsorship, commercial, and brand revenues, boosted by the 499P’s success in WEC 2025 and Formula 1 performance.
Ferrari’s profitability remained robust, with a 29.5% EBIT margin and €2,772 million in EBITDA (38.8% margin), reflecting careful cost discipline, strategic mix enrichment, and targeted investments in R&D, racing, and brand initiatives. Geographic delivery trends were balanced, with Europe showing growth and China managing to protect brand exclusivity amid a model changeover, while the order book extends into late 2027.
Industrial free cash flow of €1,538 million, up 50%, coupled with net industrial debt of just €32 million after substantial dividends and buybacks, demonstrates strong financial health and shareholder return commitment.
Looking ahead, Ferrari projects €7.5 billion in revenues, 39% EBITDA margin, and €1.5 billion in industrial free cash flow for 2026, supported by continued product mix improvement, personalizations, and new model ramps, including the historic Ferrari Luce electric sports car. With disciplined execution, robust cash generation, and a refreshed, diversified lineup, Ferrari presents a compelling bullish case for long-term investors seeking ultra-premium exposure with sustainable growth and strong capital return potential.
