Ferrari profits stay strong amidst looming U.S. tariff changes
- Ferrari is expected to limit is financial impact from U.S. tariff changes, with the U.S. representing about 25% of its sales.
- Investment bank UBS lowered its EBITDA forecast for Ferrari, citing foreign exchange headwinds alongside the tariff changes.
- Overall, analysts conclude that Ferrari's sales and profits will remain robust despite the new tariff regime.
In the U.S., the luxury sports car market is facing changes as new tariff regulations come into effect. Analysts believe that these tariffs, which could rise to 25%, will not significantly affect Ferrari's sales and profits as the American market accounts for about 25% of their total sales. Unlike Aston Martin, which is more vulnerable due to a higher proportion of its sales (one-third) coming from the U.S., Ferrari has remained relatively insulated from the potential financial impact of the tariffs. The Italian automaker has maintained a robust order book, indicating strong demand for its vehicles through 2026. Additionally, the price of models like the Ferrari Purosangue SUV starts at approximately €315,000, suggesting that even with increased tariffs, the changes will not deter buyers within the luxury segment. Investment bank UBS has noted potential impacts on Ferrari's global profits due to tariffs and foreign exchange fluctuations, and adjusted its EBITDA forecast downward by 0.8 percentage points for 2025. Moreover, Ferrari reported substantial earnings of €2.56 billion last year, demonstrating its strong performance despite external pressures. In contrast, Aston Martin has struggled, leading to financial losses and a recent capital raise to manage its fiscal challenges, which underscores the divergent trajectories of these luxury carmakers amidst evolving economic conditions.