Munich, Germany — Luxury automobile manufacturer Ferrari has announced a substantial increase in its profits for the first quarter of 2025, driven largely by a rise in demand for customized vehicles. However, executives caution that the company’s earnings could be adversely affected by potential new trade tariffs imposed by U.S. officials.
The Maranello-based sports car maker reported a net profit of 412 million euros, equivalent to about $466.3 million, for the first three months of the year. This figure marks an impressive 17% increase compared to the same period last year and surpasses analysts’ expectations, who had forecasted a profit of around 410 million euros.
“Our year has begun on a promising note,” said CEO Benedetto Vigna in a statement. “In the first quarter, despite only a slight increase in shipments year-on-year, we’ve seen double-digit growth across all major metrics. This highlights our profitability, which is being bolstered by a strong product mix and a continued appetite for personalized offerings.”
Looking forward, Ferrari has expressed concerns regarding the impact of U.S. trade policies on its bottom line. The company indicated that further developments in import tariffs on European automobiles could lead to a decrease in profit margins. “The guidance for 2025 anticipates a potential risk of a 0.5% drop in profitability percentages, related directly to the changes in trade policy spurred by these tariffs,” Ferrari noted in its earnings report.
The volatile trade landscape, particularly since the introduction of a 25% tariff on automotive imports into the U.S. earlier this month, poses challenges for luxury brands. Competitors in the European market have reported sharp declines in profit and have adjusted financial forecasts amidst this uncertainty.
In response to the tariffs, Ferrari previously announced a price increase of approximately 10% on selected models, which could result in an additional cost of up to $50,000 for consumers purchasing a typical vehicle from the company’s lineup.
As of midday trading in London, shares of Ferrari’s stock dipped about 0.8%, reflecting broader investor concerns in response to the trade climate.
Analysts suggest that luxury car makers, while generally resilient, will continue to face pressures from fluctuating tariffs and market dynamics in the near term. Ferrari’s strong start to the year showcases its ability to adapt, but the company’s leadership acknowledges that external economic factors will be critical as the year progresses.