Ferrari N.V. (RACE): History, Ownership, Mission, How It Works & Makes Money

How does a company like Ferrari N.V. (RACE) maintain its elite status when its market capitalization is hovering around $75.531 billion as of late 2025, and their FY2025 revenue guidance is at least €7.1 billion? You might think the story is just about selling high-end sports cars, but honestly, the real financial engine is the scarcity model, plus the massive profitability from personalizations, which drive about 20% of their car and spare parts revenue. The company's order book is already solid through 2027, so understanding their history, mission, and revenue streams is defintely the key to grasping why this stock is a luxury powerhouse, not just an automaker.

Ferrari N.V. (RACE) History

You're looking at Ferrari N.V. (RACE) not just as a car company, but as a luxury goods powerhouse, and that perspective is right. The company's story is a masterclass in using racing heritage to build an exclusive brand, but the financial structure you see today is the result of a few critical, modern pivots. The key takeaway is that the road car business was originally just a funding mechanism for the racing team, Scuderia Ferrari, and its current independence is less than a decade old.

Given Company's Founding Timeline

Year established

The company's founding as a manufacturer of road cars is generally recognized as 1947, the year the first Ferrari-badged vehicle, the 125 S, rolled out. The racing division, Scuderia Ferrari, was actually founded much earlier, in 1929, by Enzo Ferrari.

Original location

The de facto headquarters and manufacturing heart of Ferrari N.V. remains Maranello, Italy, where the first car was produced. The company's legal seat, however, is in Amsterdam, Netherlands, which is a common structure for large, publicly-traded European entities.

Founding team members

The sole founder was Enzo Ferrari, a former racing driver for Alfa Romeo. He channeled his intense competitive spirit into creating his own machines, viewing the sale of road cars as the necessary fuel for his true passion: racing.

Initial capital/funding

Specific initial funding amounts are defintely hard to pin down. The early operations were financed through Enzo Ferrari's personal capital from his racing activities and, crucially, through initial customer orders for bespoke vehicles. The road cars literally paid for the race cars.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been shaped by a few major strategic decisions that moved it from an Italian engineering firm to a global luxury brand with a market capitalization often exceeding that of its former parent, Stellantis (formerly FCA).

• The Racing-to-Road Pivot: Enzo Ferrari's decision to build the 125 S in 1947 wasn't a desire to sell cars; it was a pragmatic move to generate revenue to fund the racing team. This foundational link between exclusivity and performance remains the core brand value.
• The Fiat Partnership (1969-2015): Selling a 50% stake to Fiat S.p.A. in 1969, and later 90% after Enzo's death in 1988, was a survival move. It brought in the capital needed to modernize production and compete globally, but it also meant a loss of full independence for decades.
• The Spin-off and Luxury Re-rating (2015-2016): The IPO and full separation from Fiat Chrysler Automobiles was the ultimate transformative moment. By listing on the NYSE under the ticker RACE, the company successfully convinced the market to value it more like a luxury goods company (think Hermès or LVMH) than a traditional automaker. This unlocked massive value, and you can see the results in the 2025 guidance: net revenues are now expected to be greater than or equal to €7.1 billion.
• The Electrification Mandate (2025 and Beyond): The pivot to hybrid and fully-electric vehicles is the current major transformation. Hybrid models already accounted for 51% of unit shipments in 2024, and the first full-electric model is set for 2025. This is a high-stakes move to preserve performance and exclusivity in a zero-emission world. For a deeper look at the financial implications of this shift, you should check out Breaking Down Ferrari N.V. (RACE) Financial Health: Key Insights for Investors.

Honestly, the biggest change is how profitable they've become. For the three months ended June 30, 2025, operating profit (EBIT) hit €552 million, a margin of 30.9% on net revenues. That's an efficiency level almost unheard of in the auto industry. The April 2025 dividend distribution of approximately €534 million also shows their commitment to shareholder returns, a clear sign of their financial strength as an independent entity.

Ferrari N.V. (RACE) Ownership Structure

Ferrari N.V.'s ownership structure is a classic example of a dual-class share system, where a minority stake, held by the founding family's descendants and their investment vehicle, maintains majority voting control. This structure ensures the company's long-term strategic direction remains anchored to its heritage and core values, even though the common shares are publicly traded.

Given Company's Current Status

Ferrari N.V. is a publicly traded company, listed on the New York Stock Exchange (NYSE) under the ticker RACE and on Euronext Milan. To be clear, while you can buy and sell common shares easily, the company's governance is heavily influenced by a special voting share mechanism, often called a 'loyalty voting program.' This program grants shareholders who hold their common shares for a continuous period (typically three years) a special voting share, effectively doubling their voting power for each common share. This is how the Agnelli family's holding company maintains control.

The company's market capitalization stood near $94.47 billion as of November 2025, reflecting its status as a luxury goods powerhouse, not just an automotive manufacturer. That's a huge valuation for a company that expects to post a full-year 2025 earnings per share (EPS) guidance around 10.29.

Given Company's Ownership Breakdown

The control of Ferrari is concentrated, primarily through the loyalty voting structure that amplifies the influence of the two largest shareholders: Exor N.V. and Trust Piero Ferrari. As of March 3, 2025, the breakdown of outstanding common shares looks like this, but the voting power is the real story here.

Here's the quick math: Exor N.V. and Trust Piero Ferrari, together, own just over 31.8% of the common shares, but their combined voting power is nearly 48.26%. This means no single institutional or retail investor can challenge their strategic decisions. If you want to dive deeper into who's buying and selling, you should check out Exploring Ferrari N.V. (RACE) Investor Profile: Who's Buying and Why?

Given Company's Leadership

The leadership team blends the continuity of the founding family's influence with a focus on technology and luxury brand management, which is defintely a smart move for a company navigating the electric transition.

The key figures steering the organization as of November 2025 are:

• John Elkann: Executive Chairman. He is also the Chief Executive Officer of Exor and Chairman of Stellantis N.V., tying Ferrari directly to the Agnelli family's broader industrial empire.
• Benedetto Vigna: Chief Executive Officer (CEO) and Executive Director. Appointed in September 2021, Vigna is a physicist and a veteran of the semiconductor industry, signaling Ferrari's commitment to new technologies, especially electrification. His total yearly compensation is around €7.98 million.
• Davide Abate: Chief Industrial Officer. He has held this role since May 2025, overseeing the manufacturing and industrial strategy.
• Maria Conti: Chief Communication Officer. Appointed in November 2025, she brings two decades of experience in the automotive and luxury sectors.
• Alfonso Fuggetta: Chief Digital Transformation Officer. He was appointed in November 2024, focusing on integrating digital innovation across the business.

The average tenure of the management team is about 7.3 years, which is a solid sign of stability. This group is tasked with maintaining the brand's exclusivity while aggressively investing in the next generation of high-performance electric and hybrid vehicles.

Ferrari N.V. (RACE) Mission and Values

Ferrari N.V.'s core purpose transcends selling ultra-luxury cars; it's about sustaining a mythos built on racing, exclusivity, and relentless innovation, which directly underpins its premium financial performance, like the revised 2025 net revenue guidance of over €7.1 billion. This cultural DNA is the real engine of their pricing power.

Given Company's Core Purpose

You're not just buying a vehicle; you're buying into a legacy forged on the track and meticulously maintained in the marketplace. The company's values-Innovation, Excellence, and Passion-are how they maintain the scarcity that drives their business model. It's defintely a case where the culture is the strategy.

Official mission statement

While Ferrari N.V. doesn't publish a single, framed mission sentence, its strategic actions consistently outline a clear, four-part mandate. This mission is the bedrock of their valuation and what allows them to command such high prices for their limited production runs.

• Drive technological innovation, evident in their push toward hybrid and electric vehicles, with the first fully electric vehicle planned for launch in 2025.
• Maintain exclusivity, ensuring the brand remains a symbol of aspirational luxury and scarcity globally.
• Foster the racing spirit, linking every road car back to the heritage and performance of Scuderia Ferrari HP.
• Deliver unparalleled performance, pushing the limits of automotive engineering and design.

Vision statement

The vision is rooted in the 'power of a lifelong passion and the beauty of limitless human achievement,' acting as a three-part strategic engine for the company. It's about creating products that are timeless icons, not just temporary status symbols. You can read more about this strategic focus here: Mission Statement, Vision, & Core Values of Ferrari N.V. (RACE).

• The Spirit of Racing and Limitless Achievement, born on the track and transcending into a life attitude.
• Creating Timeless Icons for a Changing World, combining revolutionary technology with exceptional artisanal craftsmanship.
• Maintaining Exclusivity and Financial Excellence, which is why they revised their full-year 2025 revenue guidance upward to approximately €7.1 billion.

Given Company slogan/tagline

The company's most enduring unofficial slogan is the Italian phrase that encompasses the entire experience. But honestly, the modern focus is on a holistic team approach, which is the real driver of their push for carbon neutrality by 2030.

• Essere Ferrari - Being Ferrari.
• The core philosophy is to always choose the 'eco-system,' not the 'ego-system,' recognizing that quality and long-term results come from the entire team, including partners, suppliers, and clients.

Ferrari N.V. (RACE) How It Works

Ferrari N.V. operates not as a mass-market automaker but as a luxury enterprise that manufactures and sells exclusivity, performance, and a racing legacy. The company intentionally limits production volume to drive scarcity, which allows it to command premium pricing and generate an industry-leading operating profit (EBIT) margin of 30.9% in Q2 2025.

This model translates brand equity directly into financial performance, allowing the company to revise its full-year 2025 net revenue guidance upward to at least €7.1 billion.

Ferrari N.V.'s Product/Service Portfolio

Ferrari N.V.'s Operational Framework

The company's value creation is centered in Maranello, Italy, through a highly controlled, vertically integrated manufacturing process that ensures quality and scarcity.

• Controlled Volume Strategy: Shipments are deliberately capped-totaling 3,401 units in Q3 2025-to maintain exclusivity and high residual values, a core tenet of the brand's financial moat.
• Bespoke Customization: The Tailor Made program and personalization options are a massive profit center, contributing approximately 20% of total revenues from cars and spare parts in Q3 2025.
• In-House R&D and Production: Ferrari designs and handcrafts core components, including its engines and, soon, electric powertrains, in Maranello, which maintains technological differentiation and preserves the engine's soul.
• Agile Supply Chain: The operational model is designed for agility, allowing for quicker payment from dealers/clients (30-40 days) while extending payment to most suppliers (60-70 days).

The entire operation is a masterclass in selling quality of revenues over quantity, defintely.

Ferrari N.V.'s Strategic Advantages

Ferrari's market success is rooted in non-replicable assets and a forward-looking strategy that balances heritage with electrification.

• Unmatched Brand Equity and Pricing Power: The Prancing Horse is one of the world's most valuable brands, allowing the company to levy an exclusivity tax on buyers and sustain a high EBIT margin, which reached 30.9% in Q2 2025.
• Racing Legacy as R&D and Marketing: Scuderia Ferrari in Formula 1 is not just a team; it's a real-time, high-speed research and development lab that validates the brand's engineering excellence and drives global recognition.
• Electrification with Scarcity (Green Scarcity): The strategy is to prioritize performance parity over cost-cutting in its new electric models, such as the Ferrari elettrica slated for a phased reveal starting in October 2025.
• Robust Order Book: Sustained demand means the order book extends well into 2026 and, for new models like the 849 Testarossa family, into 2027, providing strong revenue visibility and pricing leverage.

You can read more about the foundational principles driving this strategy at Mission Statement, Vision, & Core Values of Ferrari N.V. (RACE).

Ferrari N.V. (RACE) How It Makes Money

Ferrari N.V. generates the vast majority of its revenue by selling its exclusive, highly-customized luxury sports cars and the related spare parts, a model built on scarcity and pricing power. The remaining, but still significant, portion comes from leveraging its powerful brand through Formula 1 sponsorship, commercial activities, and lifestyle merchandising.

Ferrari N.V.'s Revenue Breakdown

Looking at the first quarter of 2025, the financial engine is clearly driven by the core automotive business, but the high-margin brand activities are growing faster. Here's the quick math on the breakdown of the €1,791 million in net revenues for Q1 2025.

The core business, Cars and Spare Parts, is defintely the cash cow, but the 10.7% from Brand and Sponsorship activities is where you see the high-margin, scalable growth, jumping over 32% year-over-year in Q1 2025.

Business Economics

Ferrari's business model is a masterclass in controlled scarcity, which allows them to command exceptional pricing power-that's the whole ballgame. They intentionally keep supply below demand, which is why their order book is so strong, extending well into 2027.

• Pricing Power: The average selling price (ASP) for a Ferrari vehicle was over EUR 480,000 in 2024, and this number is constantly being pushed higher by richer product mixes.
• Personalization as Profit Driver: Increased personalizations are a major revenue driver, contributing approximately 20% of the total revenues from cars and spare parts in Q3 2025. This is pure, high-margin profit.
• Exclusivity Maintenance: Shipments were stable at 3,401 units in Q3 2025, showing their commitment to volume control over chasing market share, which preserves brand value.
• Client Loyalty: Over 70% of their sales are to existing clients, which drastically lowers customer acquisition costs and provides a predictable, high-net-worth revenue base.

What this estimate hides is the massive value of the Special Series models-like the new 849 Testarossa family-which carry a significantly higher ASP and contribute disproportionately to profitability as they enter the market.

Ferrari N.V.'s Financial Performance

The company's financial health as of November 2025 is robust, with management revising its full-year guidance upward, reflecting strong confidence. They are forecasting full-year 2025 net revenues of at least EUR 7.1 billion.

• Profitability Margins: The Q1 2025 Operating Profit (EBIT) margin stood at a high 30.3%, with the EBITDA margin even stronger at 38.7%. This shows a highly efficient, premium-priced operation.
• Quarterly Net Profit: Net profit for the third quarter of 2025 was €382 million, a clear indicator of sustained high profitability despite flat shipment volumes.
• Industrial Free Cash Flow: Q1 2025 saw a strong Industrial free cash flow generation of €620 million, demonstrating the business's ability to convert profits into usable cash.
• Debt Position: Net Industrial Debt as of March 31, 2025, was minimal at €49 million, reflecting a very solid balance sheet.

The strong performance is a direct result of the product mix, not volume. For a deeper dive into the valuation and risk factors, you should read Breaking Down Ferrari N.V. (RACE) Financial Health: Key Insights for Investors.

Ferrari N.V. (RACE) Market Position & Future Outlook

Ferrari N.V. is not just an automaker; it's a luxury house with a high-performance engine, operating with margins closer to Hermès than to traditional car manufacturers. The company's future outlook is exceptionally strong, underpinned by a strategy of disciplined volume growth and an aggressive push into high-margin Special Series models, which is expected to drive 2025 net revenues to at least €7.1 billion and adjusted EBIT to at least €2.06 billion. This focus on 'quality of revenues over quantity' is the core of their resilience.

Competitive Landscape

In the ultra-luxury sports car niche, Ferrari maintains a dominant position, primarily due to its unparalleled brand equity and pricing power. To be fair, the market is highly fragmented, but when you look at the core supercar segment, the picture is clear. Here's the quick math on the relative volume share among the three most direct competitors, based on 2025 projections:

Opportunities & Challenges

The road ahead has clear opportunities, but still, we must acknowledge the real-world risks, especially those tied to the electrification transition and global trade policy. The company's ability to pass on costs, like the potential U.S. tariffs, is a major strength, but it's not limitless.

Industry Position

Ferrari is positioned at the absolute pinnacle of the automotive pyramid, best described as a luxury goods company that happens to make cars. Its brand value and pricing power are what truly set it apart, allowing it to command a net profit per car of nearly €120,000 as of the first half of 2025. That's a defintely impressive number.

• Profitability Leader: Adjusted EBITDA margin is guided at around 38.3% for fiscal year 2025, far exceeding most luxury and performance peers.
• Scarcity Model: The company successfully manages demand by keeping production below total demand, which drives up residual values and enhances exclusivity.
• Product Pipeline: Plans to launch an average of four new models per year between 2026 and 2030 will keep the product mix fresh and highly desirable.

To understand how this financial health is sustained, you need to look closely at the numbers: Breaking Down Ferrari N.V. (RACE) Financial Health: Key Insights for Investors. It's all about the high-margin customizations and the halo effect of the Formula 1 team, which collectively insulate the business from broader automotive market volatility.