Ferrari Q1 Profit Zooms 17% But Trump Tariffs Cloud 2025 Forecast

Luxury car maker Ferrari NV (RACE) posted a surge in its first-quarter (Q1) profit, driven by buyers flocking to personalized cars, but also issued a warning about President Donald Trump’s tariff policies.

The sports car maker posted a net profit of €412 million (approximately $466 million) during the quarter, growing 17% year over year (YoY).

Benedetto Vigna, CEO of the Italian company, said Ferrari is off to a great start this year.

“In the first quarter of 2025, with very few incremental shipments year on year, all key metrics recorded double-digit growth, underscoring a strong profitability driven by our product mix and continued demand for personalizations,” Vigna said.

However, Ferrari has warned that Trump tariffs could negatively impact the company. The firm expects its profitability to take a potential hit of up to 50 basis points.

“The [2025] guidance is subject to a potential risk of 50 basis points reduction on profitability percentage margins (EBIT and EBITDA margins), in relation to the update of the commercial policy following the introduction of import tariffs on EU cars into the USA,” the company said.

Ferrari guided for €7 billion (approximately $7.93 billion) in revenue in 2025 and adjusted earnings per share (EPS) of €8.60 ($9.74).

In March, Ferrari announced that it would raise prices by 10% on certain models to account for increased costs due to Trump’s tariffs. This would raise the prices of Ferrari cars by as much as $50,000.

President Trump had imposed 25% tariffs on auto parts in April. However, the administration has since eased some of those requirements before the tariffs took effect on May 3.

This includes an offset for cars assembled in the U.S. and an exemption from tariffs for cars with 85% of the parts made in the country.

NYSE-listed Ferrari stock was up 1.50% at the time of writing.

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