Kevin Pando @Kevin_Pando: "Ferrari Shows Once Again That..."

Italy

Ferrari Shows Once Again That Luxury Is About Pricing Power, Not Volume Ferrari delivered another impressive quarter, reinforcing why it remains one of the highest-quality businesses in the market. While shipments declined, the numbers that really matter kept moving higher: - Revenue rose to €1.94 billion (+8% YoY, +11% at constant FX) - EBIT margin reached 31.2% - EBITDA margin came in at 39% - Management raised full-year 2026 guidance for revenue, profitability and free cash flow. The biggest driver wasn't higher volumes, it was personalization. Customers continue to spend heavily on bespoke options, which now account for more than 20% of revenue from cars and spare parts. These high-margin customizations allow Ferrari to grow profits without relying on aggressive production increases, preserving the scarcity that defines the brand. Another key takeaway is the successful launch of Ferrari's first fully electric model, Luce. Despite initial skepticism following its unveiling, management confirmed that customer demand has been very strong, with the 2026 production allocation essentially spoken for and orders supported by a fully booked order book through 2027. The only real debate is valuation. Ferrari continues to trade at a significant premium to the broader auto sector, reflecting investors' confidence that its unique combination of brand strength, pricing power and disciplined supply can continue delivering exceptional returns. As Warren Buffett likes to say, "The single most important decision in evaluating a business is pricing power." Ferrari continues to prove exactly why. $SPX500 $NSDQ100 $RTY $DJ30 $RACE (Ferrari NV) $STLA.US (Stellantis NV) $STLAM.MI (Stellantis NV) $OIL $GOLD $NATGAS

Not investment advice. The author may have financial interests in the mentioned instruments.