Ferrari’s core profit rises despite shipment dip after software switch

Ferrari core earnings rose 7% in the third quarter despite a small and calculated dip in car shipments aimed at facilitating an internal software transition at the luxury sports carmaker, its top executives said on Tuesday.

The Italian company switched over the summer to a new enterprise resource planning (ERP) method, a type of software system helping organisations automate and manage and improve their business processes.

Ferrari has replaced its two previous systems, one for sales and one for production, with a new single one.

"Volume and mix (in the third quarter) also reflected our decision to facilitate the company's transition to a new ERP," CEO Benedetto Vigna told analysts. "ERP transition has been concluded. So, there is no impact in Q4".

He also said Ferrari would hold a capital markets day in the second half of next year.

In the third quarter, Ferrari shipments declined 2% to 3,383 units, with a 29% decrease in China, where  the company has limited exposure.

CFO Antonio Picca Piccon said the system transition forced the company to stop production and deliveries for some weeks.

Analysts at Bernstein said the dip was not a surprise. "It does not reflect a demand deficit, but rather demonstrates Ferrari's ability to allocate its shipments to suit its margin aspirations," they said, adding they expected shipments in the fourth quarter above last year's level.

Ferrari's profit growth was supported by its richer model line-up and increased demand for personalisation, touches customers request to make their cars more suited to their tastes inside and out.

Its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) totalled €638m (R12.30bn) in the July-September period, roughly matching analysts' average forecast in a Reuters poll.

Demand for new, exclusive high-end models — such as the €2m (R35.4m), V12 Daytona SP3, as well as a "few sales" of the limited series, track-only 499P Modificata, priced at €5.1m (R90.3m) — brought a €60m (R1.06bn) positive contribution to the quarterly result.

Vigna said the company enjoyed "exceptional order book visibility well into 2026".

Milan-listed shares in the company, which on Tuesday confirmed the full-year forecasts it provided in August, including for EBITDA to reach at least €2.5bn (R47.63bn), were down 6.4% by 4.20pm GMT. They have gained around 35% this year.

"In the exalted world of Ferrari valuation, Ferrari's third-quarter results were solid rather than spectacular, and in line with well-communicated consensus," analysts at Citi said in a note.