Mission Statement, Vision, & Core Values of Ferrari N.V. (RACE)

When a company like Ferrari N.V. (RACE) raises its financial guidance, it signals that the intangible-its Mission, Vision, and Core Values-is translating directly into tangible market performance.

For the 2025 fiscal year, the company now forecasts net revenues of at least €7.1 billion and adjusted Operating Profit (EBIT) of at least €2.06 billion, exceeding profitability targets a year ahead of schedule. How does this happen when they intentionally limit production to preserve exclusivity, shipping only 3,494 units in Q2 2025? Are the core principles of Passion, Excellence, and Exclusivity just marketing fluff, or are they the defintely real engine driving a 30%+ operating margin?

We need to map the DNA of the Prancing Horse to its valuation: what specific actions, driven by its foundational statements, allow Ferrari to command such a premium in a slowing luxury market?

Ferrari N.V. (RACE) Overview

You're looking for a clear picture of Ferrari N.V., and here it is: the company is a high-octane luxury machine that continues to defy economic gravity, translating brand exclusivity into massive profits. They just posted strong Q3 2025 results and revised their full-year guidance upward, which signals significant confidence in their pricing power and product mix.

The Ferrari story starts with racing passion. Enzo Ferrari founded the Scuderia Ferrari racing team in 1929, but the first vehicle bearing the Ferrari name didn't leave the Maranello, Italy, factory until 1947. Today, the company designs, engineers, and manufactures a highly exclusive portfolio of luxury performance vehicles, including Sports Cars like the 296 GTB/GTS, Gran Turismo (GT) models such as the Purosangue, and ultra-limited Icona series cars. They also generate significant revenue from engine supply, sponsorships, and brand licensing.

Controlling supply to keep demand high is their core strategy. For the third quarter of 2025, total shipments were 3,401 units, remaining substantially flat year-over-year to preserve that crucial exclusivity. This low-volume, high-price model is why they can project full-year 2025 net revenues to be at least €7.1 billion. That's a serious number.

Record-Breaking Financial Performance in 2025

The numbers from the latest reporting period are defintely impressive, showing how well Ferrari manages to monetize its brand and product mix even with flat shipment volumes. For the third quarter of 2025 alone, Ferrari reported net revenues of €1,766 million, marking a solid 7.4% increase from the prior year. Net profit for the quarter was €382 million, translating to a diluted earnings per share (EPS) of €2.14.

Here's the quick math on profitability: Operating Profit (EBIT) reached €503 million, a 7.6% year-over-year jump, driving an EBIT margin of 28.4%. The real driver here isn't volume, but the enriched product mix and the high-margin personalization options customers are choosing. Honestly, those personalizations accounted for about 20% of total revenues from cars and spare parts. That's a huge margin booster.

The revenue growth was segmented like this:

• Cars and Spare Parts: €1,479 million (up 5.6%), fueled by product mix and personalizations.
• Sponsorship, Commercial, and Brand: Revenues rose by a substantial 21%, helped by lifestyle activities and better Formula 1 results.

The company is so confident in this performance that they revised their full-year 2025 guidance upward in October, now expecting adjusted EBIT to be at least €2.06 billion and adjusted diluted EPS to be at least €8.80. They are exceeding 2026 profitability targets a year in advance. You can dive deeper into the balance sheet and cash flow here: Breaking Down Ferrari N.V. (RACE) Financial Health: Key Insights for Investors

A Leader in Luxury and Performance

Ferrari N.V. is not just a car company; it's a luxury brand powerhouse, and its market capitalization of approximately €69.55 billion as of late 2025 positions it prominently in the high-end automotive sector. This prominence stems from a strategic, decades-long commitment to exclusivity and the motorsport heritage of Scuderia Ferrari, which is the single oldest and most successful team in Formula 1 history.

The company's ability to consistently command a premium for its products is unmatched. They sell over 70% of their vehicles to existing clients, which shows incredible brand loyalty and pricing power. Plus, the product mix is shifting, with hybrid models making up 43% of Q3 2025 shipments, demonstrating a successful transition into new powertrain technologies without sacrificing performance or exclusivity. That's how you stay a leader: you innovate without compromising the core brand. To understand the full scope of their strategic advantage, you need to look at how they manage demand and product evolution.

Ferrari N.V. (RACE) Mission Statement

You're looking for the bedrock of Ferrari N.V.'s valuation, and honestly, it all comes down to their mission. It's not just a plaque on the wall; it's the engine that drives their pricing power and their strategic moves. While the company doesn't publish a single, pithy sentence, their actions and communications consistently point to a clear, four-part mission: Driving technological innovation, Maintaining exclusivity, Fostering the racing spirit, and Delivering unparalleled performance.

This mission is the blueprint for their long-term goals, like the commitment to a richer product mix that pushes profitability. For the first half of 2025, this strategy paid off: Net Revenues hit €3,578 million, with a Net Profit of €837 million. That kind of precision in execution is what separates a luxury brand from a luxury investment. If you want to dive deeper into how those figures stack up, you can check out Breaking Down Ferrari N.V. (RACE) Financial Health: Key Insights for Investors.

1. Driving Technological Innovation

Innovation isn't a buzzword for Ferrari; it's a cost center that generates massive returns. They view their cars as rolling laboratories, and the investment confirms it. In the first quarter of 2025 alone, R&D spending totaled €270 million, a 6% increase year-over-year, to push advancements in new powertrains and vehicle dynamics. Here's the quick math: that R&D fuels the pricing power that allowed the company to raise its full-year 2025 guidance, projecting net revenues above €7.0 billion.

This commitment is most visible in their electrification roadmap. The first fully electric Ferrari is scheduled to launch in 2025, alongside five other new models this year, including the Ferrari elettrica and the track-derived 296 Speciale family. They are defintely not afraid to blend their heritage with the future, but they are doing it on their own terms.

• Launch six new models in 2025, including the first all-electric vehicle.
• Focus R&D on hybrid and electric powertrains, plus new materials.
• Use racing technology to enhance road car performance.

2. Maintaining Exclusivity

The second core component is a strategic constraint that keeps the brand aspirational: maintaining exclusivity. This is why you see the CEO, Benedetto Vigna, consistently stressing a strategy of 'quality of revenues over quantity'. It's a deliberate choice to ensure demand always outstrips supply, which is the secret to their high margins.

The numbers show this control is absolute. Total shipments for the first half of 2025 were 7,087 units, a marginal increase that reflects their careful allocation strategy. Shipments in the second quarter of 2025 were substantially flat at 3,494 units compared to the prior year, a direct result of managing volume to preserve the brand's premium image. What this estimate hides is the richer product mix, with models like the SF90 XX and 12Cilindri families driving a positive mix/price variance of €47 million in Q2 2025, proving exclusivity is profitable.

3. Fostering the Racing Spirit

The racing spirit is the soul of the mission, connecting the road cars directly to the Scuderia Ferrari HP Formula 1 team. This isn't just marketing; it's a source of both technology and revenue. The mission is to win, not just participate, in both Formula 1 and Endurance racing.

This pursuit of victory directly impacts the bottom line. Sponsorship, commercial, and brand revenues jumped to €191 million in Q1 2025, a massive 32% increase year-over-year. This growth was mainly due to new sponsorships and higher commercial revenues linked to the team's improved Formula 1 ranking from the previous year. The track is their ultimate proving ground, and its success fuels the passion and the inclusive side of their brand, engaging a fan base (the tifosi) that transcends the small, exclusive client list.

Ferrari N.V. (RACE) Vision Statement

You're looking for the bedrock of Ferrari N.V.'s stock performance, and it's not just horsepower; it's a vision rooted in the 'power of a lifelong passion and the beauty of limitless human achievement.' The direct takeaway is that Ferrari's vision is a strategic three-part engine-racing heritage, product exclusivity, and technological innovation-that directly translates to their premium financial results, like the revised 2025 net revenue guidance of over €7.1 billion.

Honestly, a company like this doesn't have a framed, one-sentence vision on the wall; their vision is their DNA. It's about being 'Born of the spirit of racing' and creating 'timeless icons for a changing world.' This vision is why they consistently choose 'quality of revenues over quantity,' which is a smart, defensible strategy in the luxury market. It's defintely working.

The Spirit of Racing and Limitless Achievement

The first pillar of the vision is the relentless pursuit of achievement, which for Ferrari N.V. means pushing the limits of technology, just as they do on the Formula 1 track. This pursuit is what drives their massive research and development (R&D) spend. For context, their 2024 expensed R&D and capital expenditure (CapEx) was around €1.6 billion, a huge commitment to future performance.

This commitment is most visible in their electrification journey, which they call the 'new era.' The company inaugurated its new e-building in Maranello in 2025, which is a dedicated facility for developing and manufacturing key electric components like motors, inverters, and battery modules in-house. This vertical integration is a direct action linked to the vision of 'limitless human achievement,' ensuring they control the performance and exclusivity of their first fully electric car, the Ferrari elettrica, ahead of its late 2026 delivery.

• Control key electric components in-house.
• Target carbon neutrality by 2030.
• Inaugurate the e-building on renewable energy.

Creating Timeless Icons for a Changing World

The second component is about the product itself-creating 'timeless icons.' This means carefully managing the product portfolio to balance heritage (internal combustion engines or ICE) with the future (hybrid and battery-electric vehicles or BEV). The near-term product mix shows this balance: in the first quarter of 2025, their shipments were nearly split, with 51% being ICE models and 49% being hybrid models.

The strategic shift is clear in their 2030 product mix target, which now projects 40% ICE, 40% Hybrid, and 20% Electric. This is a realistic, pragmatic step back from earlier, more aggressive EV targets, acknowledging the current market demand for higher-margin combustion and hybrid models that define the brand. They are not chasing volume; they are curating the icon. The launch of new models like the 296 Speciale and the Ferrari Amalfi coupé in 2025 is how they keep the product pipeline rich and exclusive.

For more on how this product strategy impacts the bottom line, you should check out Breaking Down Ferrari N.V. (RACE) Financial Health: Key Insights for Investors.

Maintaining Exclusivity and Financial Excellence

The final, and most financially relevant, part of the vision is maintaining exclusivity, which is the core of their business model. Ferrari N.V. does this by strictly controlling annual shipments, ensuring demand always outstrips supply. Here's the quick math: total shipments for the first three quarters of 2025 were only 10,488 units. That's a tiny number for a global automaker, but it's the secret sauce.

This scarcity allows them to command incredible pricing power and personalization revenue, driving a high profitability margin. The company raised its full-year 2025 guidance, projecting an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of €2.7 billion or more, with an EBITDA margin expected to exceed 38.3%. That kind of margin is closer to a luxury goods company, not a typical car manufacturer, and it's a direct result of their vision to prioritize exclusivity. The strong demand for personalizations, which are high-margin add-ons, is a key driver of this financial performance.

Ferrari N.V. (RACE) Core Values

You're looking at a company that is more than a car manufacturer; it's a luxury and racing institution, and its core values aren't just posters on a wall-they are the engine driving its financial results. The direct takeaway is this: Ferrari N.V. (RACE) uses a focused set of values-Innovation, Excellence, and Passion-to maintain exclusivity, which directly allowed them to revise their full-year 2025 revenue guidance upward to approximately €7.1 billion.

This isn't just about selling cars; it's about selling a meticulously crafted scarcity. When you dive into the numbers, you see how these principles translate into real-world performance, like the Q3 2025 total revenues of approximately €1.8 billion, a 7.4% year-over-year growth, even with flat deliveries. That's the power of brand and value alignment. Breaking Down Ferrari N.V. (RACE) Financial Health: Key Insights for Investors shows this connection clearly.

Innovation and Technological Neutrality

Innovation for Ferrari isn't about being first to market with one technology; it's about what they call 'technological neutrality.' This means investing in all three major powertrain types-internal combustion engine (ICE), hybrid, and electric-to offer clients maximum freedom of choice. It's a smart, realistic hedge against a volatile market. The e-building, inaugurated in Maranello in 2024, is the defintely perfect example of this, designed to manufacture all three powertrains flexibly.

This commitment is backed by capital. While they had to recalibrate their 2030 powertrain offer in 2025 to be 40% ICE, 40% hybrid, and only 20% electric (a shift from the previous 40% electric target), the innovation pace remains strong. We saw the first step of the reveal of the Ferrari Elettrica in Q4 2025, plus the launch of new hybrid models like the 849 Testarossa family, all of which are keeping their product mix fresh and highly desirable.

• Maintain three powertrains: ICE, Hybrid, Electric.
• Unveiled first step of Ferrari Elettrica in Q4 2025.
• New models keep the order book strong into 2027.

Excellence and Unparalleled Performance

The pursuit of excellence is validated on the track and in the financial statements. Ferrari's racing DNA is not just a marketing tool; it's a real-time R&D lab that translates directly into road-car performance. This value was powerfully demonstrated by the #83 499P Hypercar securing overall victory in the 2025 24 Hours of Le Mans, marking a second consecutive win for the brand.

In the luxury market, performance also means financial performance and brand exclusivity. The company's focus on managing scarcity is crucial. In Q2 2025, shipments totaled 3,494 units, a figure kept substantially flat to preserve the brand's exclusivity. This strategy works: strong pricing and increased personalizations accounted for approximately 20% of total revenues from cars and spare parts in Q3 2025, helping to lift the full-year EPS guidance to €8.80. Excellence pays a premium.

Passion, People, and Heritage

Enzo Ferrari famously said, 'Factories are made of machines, walls and people. I believe Ferrari is made most of all by its people.' This focus on the human element is a core value that ties directly to their heritage and fuels the passionate community of tifosi (fans). This isn't corporate fluff; it's a strategic investment in talent and culture.

In 2025, the company continued to invest in its employees through programs that foster a sense of belonging and well-being. The Formula Benessere program, for instance, provides in-house medical-health check-ups for employees and their families. Furthermore, the broad-based share ownership plan, launched in 2024, gives Italian employees the option to become shareholders, receiving a one-off grant of shares worth up to a maximum of approximately €2,065. Here's the quick math: that's a tangible benefit designed to align employee interests with shareholder returns.

This commitment to people and community is also evident in their educational initiatives, such as the new M-TECH Alfredo Ferrari educational hub, which aims to train the next generation of innovators, reinforcing the link between the company and its Maranello roots. You need to treat your people right if you want them to build a €7.1 billion business.

Finance: draft a 13-week cash view by Friday to assess the capital allocation between electrification R&D and the new share repurchase program planned for 2026.