Ferrari N.V. (NYSE:RACE) shares traded lower in Thursday’s premarket session following the luxury sports car manufacturer’s release of its comprehensive 2030 strategic plan and updated near-term financial guidance.
2025 Financial Guidance
For 2025, the company has modestly raised its outlook, now projecting revenue of ≥7.1 billion euros ($8.3 billion), an increase from the previous guidance of >7.0 billion euros.
Adjusted EBITDA is expected to reach ≥2.72 billion euros (up from ≥2.68 billion euros), while adjusted earnings per share (EPS) are guided to be ≥8.80 euros (a lift from ≥8.60 euros).
Targeting 40% Margin By 2030
Looking towards 2030, Ferrari is targeting net revenues of approximately 9.0 billion euros ($10.5 billion), implying a compound annual growth rate of about 5%, primarily fueled by its sports car segment and related activities.
The company aims for an EBITDA of at least 3.6 billion euros by the decade’s end, translating into an EBITDA margin of at least 40%.
The strategy targets a cumulative industrial free cash flow of roughly 8.0 billion euros between 2026 and 2030, supported by growing profitability, though partially offset by expected cumulative capital expenditures of around 4.7 billion euros and other operational shifts.
Enhanced Shareholder Return Program
The firm is committing to enhanced shareholder returns, announcing a plan to increase the dividend payout ratio to 40% of adjusted net profit, commencing with the 2025 results.
This initiative is expected to result in 3.5 billion euros in total dividends distributed between 2027 and 2031.
Concurrently, Ferrari is set to launch a new 3.5 billion euros share repurchase program, slated to run from 2026 until the end of the strategic plan period.
Product Pipeline
On the product front, the company has successfully launched 14 of its 15 planned models since 2022. Looking ahead, the strategy forecasts an average of four new model launches per year between 2026 and 2030.
By 2030, the portfolio is expected to comprise a powertrain mix of 40% internal combustion engines (ICE), 40% hybrid, and 20% fully electric vehicles.
In line with this transition, Ferrari unveiled the chassis and powertrain for the Ferrari Elettrica, its first fully electric vehicle, with deliveries anticipated in late 2026.
The company currently maintains 90,000 active clients, having attracted over 32,000 new customers since 2022, with collector engagement also expanding, noting a 45% rate of new collectors.
Sustainability, Engine Evolution, And New Facilities
In terms of operational and sustainability initiatives, the Maranello-based manufacturer plans to evolve its V6, V8, and V12 engines, focusing on increased power and adaptation to alternative fuels to comply with global regulations.
Ferrari reaffirmed its commitment to reduce Scope 1 and 2 emissions by at least 90% by 2030 while maintaining carbon neutrality. Building on this, the company has updated its target to cut absolute Scope 3 emissions by at least 25% by 2030, relative to 2024 levels.
This reduction will be driven by the use of recycled aluminum in engines and chassis, alongside continued collaboration across the supply chain.
The firm also opened its “e-building” in Maranello to enable in-house production of key electrification components. Future developments include opening new tailor-made centers in Tokyo and Los Angeles and a new paint shop, all planned for 2027.
Price Action: RACE shares were trading lower by 14.13% to $411.50 premarket at last check Thursday.
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