Ferrari Posts 17% Profit Gain, Flags Tariff Threat

The Q1 net profit of Ferrari reached €412 million ($466.3 million) which exceeded Reuters’ forecast of €410 million because of strong demand for customized vehicles according to CEO Benedetto Vigna. The company achieved significant profit growth even though its shipment numbers remained constant. Ferrari predicts its 2025 financial performance will reach €7 billion in revenue and €2.68 billion in EBITDA with €8.60 per share earnings. The company expects U.S. tariffs on EU cars to reduce its profit margins by 50 basis points according to its earnings report. European automakers experience declining profits and suspended guidance because of Trump’s trade policies. The luxury focus of Ferrari combined with its Maranello base provides some protection against market risks but U.S. market threats endanger its strong growth potential which demonstrates how tariffs affect businesses broadly.