Ferrari Sounds Alarm on U.S. Tariffs After 17% Profit Surge - NEW BOX OFFICE TO DAY

• Ferrari announced a notable increase in their first-quarter profits on Tuesday, attributing this growth to strong demand for customized cars.
• The sports car maker based in Maranello, Italy, reported a net profit of 412 million euros ($466.3 million) for the initial quarter of the year, marking a 17% rise compared to the corresponding period the previous year.
• Ferrari cautioned that the implementation of U.S. tariffs on European vehicles brought into the country might adversely affect the company's profit margins this year.

Ferrari announced a substantial increase in their first-quarter profits on Tuesday, attributing this growth to strong demand for customized cars. However, they also cautioned about potential impacts from comments made by U.S. President Donald Trump His trade policy might impact earnings this year.

The sports car maker based in Maranello, Italy, reported a net profit of 412 million euros ($466.3 million) for the initial quarter of the year, showing a rise of 17% compared to the corresponding period the previous year.

According to a Reuters survey, analysts anticipated the company would report a first-quarter net profit of 410 million euros.

"Ferrari CEO Benedetto Vigna stated, 'The new year has started off fantastically,'" in a press release.

Vigna stated that during the initial three months of 2025, despite minimal additional deliveries compared to the previous year, significant advancements were seen across major performance indicators, showing more than ten percent improvement. This highlights robust earnings primarily due to our product variety and persistent customer interest in bespoke options.

Ferrari cautioned that the implementation of U.S. tariffs on European vehicles brought into the country might adversely affect the company's profit margins this year.

The [2025] guidelines face a possible downside risk of reducing profit margin percentages (EBIT and EBITDA) by up to 50 basis points due to changes in the commercial strategy following the implementation of import duties on European vehicles entering the U.S. market, according to the company’s financial statement.

In 2025, Ferrari anticipates net revenues exceeding 7 billion euros ($7.93 billion), with earnings before interest, taxes, depreciation, and amortization forecasted to be at least 2.68 billion euros ($3.04 billion). Additionally, they project an adjusted earnings per share figure of 8.60 euros ($9.74).

Premium automobile manufacturers are grappling with the disruptive effects of Trump's inconsistent approaches. trade tariff Policy. Various major automotive corporations from Europe reported a sharp downturn This quarter has seen profits reported during the earnings season, with numerous companies pausing or reducing their financial forecasts due to the impact of Trump's tariffs.

"As numerous automotive and other firms are halting their financial forecasts amid uncertainties regarding the effects of US tariffs and subsequent economic repercussions both domestically and globally, Ferrari distinguishes itself," noted Bernstein analyst Stephen Reitman in an investor update on Tuesday.

In early April, the president introduced a 25% tariff on vehicles imported into the U.S. Last week though, Trump attempted to reduce these charges. signing an executive order intended to stop various distinct levies — like an extra 25% duty on steel and aluminum imports — from being imposed cumulatively.

Ferrari said In late March, they announced that prices for specific models would increase by 10% due to the tariffs. This adjustment could lead to an additional cost of around $50,000 for a standard Ferrari.

"Looking forward with assurance, we remain watchful of our surrounding circumstances," Vigna stated to investors on Tuesday during the firm's quarterly earnings conference.

The share price of the company listed in Milan was trading approximately 0.8% down at 12:44 PM London time. The U.S.-listed shares showed similar performance.

During the initial three months of the year, the car manufacturer’s worldwide deliveries rose marginally by under 1%, totaling 3,593 units. Even though the shipment numbers remained relatively stable, Ferrari saw an approximate increase of 13% in their net income, reaching 1.79 billion euros ($2.03 billion), with their net earnings climbing by 17% to hit 412 million euros ($466.7 million).

Regarding the debut of Ferrari's first all-electric vehicle, a car called the Elettrica, Vigna said the company will not reveal it until spring 2026, followed by deliveries in October 2026.

Initial expectations were that the Elettrica would be revealed at Ferrari's upcoming capital markets day in October. Instead, the company will discuss the "technological hub" of the vehicle, Vigna said.

This groundbreaking innovation combines cutting-edge technology, distinctive design, and innovative features. The phased introduction of this electric vehicle promises to be a thrilling exploration," stated Vigna about the progressive EV launch. "As the pioneer in its category, it excels in all elements that define genuine Ferrari excellence.