Ferrari Q3 2026 Earnings Call Transcript

Ferrari (NYSE:RACE) reported third-quarter financial results on Tuesday. The transcript from the company’s third-quarter earnings call has been provided below.

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Summary

Ferrari N.V. reported strong Q3 2026 results, with revenues reaching 1.9 billion euros and EBIT exceeding 560 million euros, driven by a strong product mix and personalization trends.

The company upgraded its full-year guidance due to continued strong demand, personalization rates exceeding expectations and favorable forex rates.

Ferrari highlighted successful launches and events, including the Dodechilindri Manuale and GT3 Modificata, and maintained a robust order book extending into 2028.

Operational highlights included the production and allocation of the Ferrari Luce, with deliveries fully booked for 2027, and an expansion of the dealership network reflecting a new corporate identity.

Management emphasized a commitment to innovation and unique customer experiences, with future plans for model launches and new flagship store openings in strategic locations like New York.

Full Transcript

OPERATOR

Good day and thank you for standing by. Welcome to the Ferrari 2026 third quarter conference call and webcast. At this time all participants are in listen-only mode. After the speaker’s presentation, there will be the question and answer session. To ask a question during the session, you need to press star one one on your telephone keypad. You will then hear an automatic message advising your hand is raised. To withdraw a question, please press star one one again.

Please be advised that today’s conference is being recorded. I would now like to hand the conference over to our first speaker today, Nicolette Terusot, Head of Investor Relations. Please go ahead.

Nicolette Terusot (Head of Investor Relations)

Thank you, Nadia, and welcome to everyone who is joining us today. We plan to cover the Group Q3 2026 operating results and the duration of the call is expected to be around 45 minutes. The call will be offered by the Group CEO, Mr. Benedetto Vigna, and Group CFO, Mr. Antonio Picca Piccon. All relevant materials are available in the investors section of the Ferrari corporate website. And at the end of the presentation we will be available to answer your questions.

Before we begin, let me remind you that any forward-looking statements we might make during today’s call are subject to the risks and uncertainties mentioned on page two of today’s presentation and the call will be governed by this language. With that said, I’d like to turn the call over to Benedetto.

Benedetto Vigna (Chief Executive Officer)

Thank you, Nadia. Thank you, Nicoletta, and good morning or good afternoon to everyone joining us today. Today, we are pleased to share with you three important updates: one, the financial results of the third quarter; two, the progress in the three sources of our brand; and last but not least, an update on the full-year guidance. But before that, first on the brand side, Ferrari climbed three places in Interbrand’s Best Global Brands 26, confirming itself as the world’s most valuable Italian brand. Second, my sincere thanks go to the teams, to our existing and new clients for their loyalty and trust, and to all our business partners who work alongside us every day. As underlined in previous calls, we remain fully focused on innovation both in terms of product and experiences we offer and execution, consistently moving along the trajectory set out at our Capital Market Day.

This continues to be our North Star because we believe that only in this way we can continue to be unique in the ultra-luxury space we operate. Our Q3 business performance was characterized by strong product mix and a solid trend in personalizations, which led to revenues at 1.9 billion euro, EBIT above 560 million euro, growing double digit, and industrial free cash flow generation of more than 57065 million euro. We believe that only through emotion-driven innovation, consistent execution, and focused discipline we can make remarkable progress. So now let me share with you our progress over the past quarter across each of our three sources.

Let’s start with sportscars. Q3 has been an intense and engaging quarter. It started with the launch of the Dodechilindri Manuale and it closed with the digital debut of the track model GT3 Modificata. It has also been constellated by numerous dynamic marketing activities which allowed us to engage both repeaters and new clients, further supporting the continued momentum of our brand. There is nothing more experiential in a car and all Ferrari experiences are a fundamental part of living our brand with all our senses.

The experiences on road and on tracks we offer across all over the continents represent a truly differentiating factor sustaining our uniqueness. They create memorable moments for our clients to engage with Ferrari beyond our cars. They enlarge the Ferrari community, create new bonds, and further strengthen the sense of belonging to the prancing horse. I personally attended the Cavalcades in Europe in July and recently the Tributo to the University of Herare in India where I also had the pleasure to drive from Jaipur to Agra. And I can guarantee you that driving all together amazing cars in beautiful and stunning landscapes is truly unique and, most importantly, establishes special and unforgettable connections among all the participants. And during one of these moments the first ever Ferrari Luce has been auctioned for the record amount of $40 million in Pebble Beach, where proceeds will be devolved to educational projects in USA and in Maranello.

A few facts about Luce: 1. First few deliveries in Q4. 2. 2027 deliveries are fully allocated. 3. More than 50 local, premier and private views across USA, Europe, Middle East and Asia PAC, and 5 public events including the temporary exhibition at our museum. They are all done. Each created valuable opportunities to bring the car closer to our audiences in person, expressing its uniqueness better than any digital experience could. Fourth, international media test drives are planned for Q1 27 and right after test drives for our clients.

In the meantime, the global rollout of our new corporate identity is progressing across our dealership network, reflecting our dealers’ continued commitment and investment in the brand and further elevating the way Ferrari is represented across markets. Some of the recent openings include those in Zug in Switzerland, Pasadena in US, and Riyadh in Saudi Arabia that you can see in the chart. Inside the new dealership, at the center of this dealership we have a piazza hosting clients, to underline even further that we always put clients at the center of what we conceive and what we do.

And now let’s talk about order book. We continue to experience a healthy demand across all geographies with an order book that enters 28 and more is yet to come. We will launch in the physical world two new models before the end of the year and we look forward to sharing them with you. Just wait a few more weeks and you will have a better understanding of what we are planning to do. Moving on to racing. Last Sunday in Mexico marked a historic moment for Formula One and Italian motorsport, and here I would like to congratulate Kimi Antonelli on becoming World Champion. Competition is what drives us. It raises the bar, fuels our determination, and reminds us every day why Ferrari races to win. We remain fully focused on Formula One and World Endurance Championship, pushing to the very end of the season while already working relentlessly towards next year.

Beyond the track, our sailing adventure is progressing further with the announcement a few weeks ago of the crew and the new operational hub in Livorno that will host Diapersail by the end of this year. Innovative 100 ft flying monohull designed to challenge the oceans entered the final construction phase. A truly technological masterpiece with more than 20 patents registered. And last but not the least, lifestyle. The quarter was equally rich in activity, from the capsule collection for the Monza Grand Prix to the increasingly tailored experiences offered through Casa Ferrari at Pebble Beach and our fan zones, and the launch of the Sketch Body. This project brings together art, innovation, and tradition and it enriches our collectible offer, meeting strong interest from our clients and already sold out for the next year.

If you haven’t seen it yet, I really invite you to take a look. Across all these initiatives, we have continued to express our brand with the same consistency and sophistication, preserving our identity and DNA. And it is with the same approach that we are now preparing, after the London opening in Q1 26, for our next flagship store opening in New York where we will unveil our new lifestyle collection. To conclude, we continue to execute our plans with innovation, focus, and determination, making steady progress on the path outlined in our business plan. Today we are raising our guidance for the year and Antonio will provide you with more details and colors about it. And on this note I hand over to Antonio. Thank you.

Antonio Picca Piccon (Chief Financial Officer)

Grazie, Benedetto, and good morning or afternoon to everyone. On page five, we present the highlights of the third quarter. It was a strong one with remarkable profitability growth, supported by the business trends we have seen throughout the year, a strong sports car mix, and personalizations which continue to exceed our expectations. Industrial free cash flow generation was also strong, almost achieving our full-year guidance in the first nine months.

Let’s review the results in more detail. Turning to page six, you can see the breakdown of our Q3 shipments and the ongoing model changeover, which continues to progress in line with our plans. During the quarter, the 849 Testarossa and the 296 Speciale Aperta continued to ramp up, together with the first deliveries of the 849 Testarossa Spider. The Amalfi and the 296 Speciale Coupe increased their contribution and entered the global distribution phase, joining the Dodeci Cylindre family and the Purosangue.

Deliveries of the F80 progressed in line with our plans, while the 296 GTS, the Roma Spider, and the SF90XX family reached the end of their respective life cycles. The geographic mix of our deliveries reflects the usual rationale: when a new model is launched, we serve closer markets first, followed by a progressive rollout across other geographies. On page seven, net revenues increased by almost 10% at constant currency and 7% including the headwind from currency, mainly related to the US dollar and Japanese yen. The increase in cars and spare parts was driven by the richer product mix and higher personalizations. Personalizations surpassed 21% of total revenues from cars and spare parts and were particularly relevant for the 296 Speciale family. The adoption of carbon and paint continues to drive revenue growth.

Sponsorship, commercial, and brand increased thanks to higher sponsorships and lifestyle activities, which were partially offset by lower commercial revenues linked to last year’s Formula One ranking. Other revenues also positively contributed, mainly in relation to the rental of engines to other Formula One racing teams. It is worth noting that while the comparison against the US dollar spot rate is becoming more favorable, we continue to record a negative variance from prior-year hedges.

Moving to page eight, the remarkable increase in EBIT was driven by the very strong mix/price variance, reflecting the positive product mix and the strong personalizations previously highlighted in detail. The product mix is the result of the positive contribution of DFAP, the 849 Testarossa and the Dodeci Cylindre families, as well as lower deliveries of the 296 family, partially offset by lower deliveries of the SF90XX family and the ramp-up of the Amalfi.

The positive volume variance is due to spare parts, while shipments were deliberately planned slightly lower to allow for the smooth completion of the model changeover. These positive variances were only marginally offset by higher depreciation and amortization in line with the start of production of new models and higher marketing expenses. The higher costs implied by the better Formula One in-season ranking assumptions compared to last year, included in the other variance, were substantially offset by the positive contribution from racing and lifestyle activities.

Percentage margins remained at very strong levels despite the foreign-exchange headwind, with both the EBITDA margin and the EBITDA margin increasing compared with last year. On page nine, our industrial free cash flow was strong in the quarter and driven by the increase in profitability and supported by a positive change in working capital, mainly reflecting the advances collection. This was partially offset by capital expenditures primarily focused on product and infrastructure development. With a new paint shop approaching its completion, at the end of the quarter we were in a net cash position of 219 million euro, even after the share repurchases executed during the period.

Turning to page 10, we upgrade our guidance for the year. Our updated assumptions for Q4 include a stronger contribution from personalizations, in line with the Q3 trend, which is supported by the higher concentration of special versions planned in the fourth quarter; a further improved US dollar to euro exchange rate compared to Q3, including hedges; and lower Formula One costs, reflecting the current second position in the championship ranking, while we assume that all four remaining races will be confirmed.

Looking ahead, we remain firmly focused on executing our plans along the guidelines outlined at our last Capital Markets Day. Our confidence in the strength of our strategy and in our ability to preserve and nurture our brand over the long term continues to guide us every day. Thank you for your attention, and I turn the call over to Nicoletta.

Nicolette Terusot (Head of Investor Relations)

Thank you, Antonio. We are now ready to open the Q&A session.

OPERATOR

Dear participants, as a reminder, if you wish to ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw a question, please press star 1 1 again. We will compile the Q&A roll. This will take a few moments. Now we’re going to take our first question, and it comes from the line of Eduard Aubin from Morgan Stanley. Your line is open. Please ask your question.

Eduard Aubin (Analyst)

Yeah, good afternoon. Thank you for taking my questions. So three quick ones from me. The first one is the F80. I think, doing the math, you’re anywhere between 17 and 50 units shipped in the third quarter. So I think for the first half people had assumed around 40 units per quarter in Q1, Q2. Are you more or less in that kind of range, or is there any significant or material acceleration or increase sequentially between H1 and Q3? So that would be question number one.

Question number two is, as you just mentioned, Antonio, you now assume second place in the Formula One championship. Regarding the release of provision for the Formula One championship, will you take this release in Q4, and can you just give us an idea of what roughly is the amount you expect to release in Q4, if that’s the case? And then lastly, Antonio, on the impact of the hedging on the top line and profit, what do you have in mind for Q4 and 2027? Thank you so much.

Benedetto Vigna (Chief Executive Officer)

Eduard, these are all questions for Antonio. Will you manage the first one?

Antonio Picca Piccon (Chief Financial Officer)

Yeah, the first one on F80: we have been growing just slightly quarter over quarter, and therefore we were still within the original 50 units with respect to the second quarter. With respect to the Formula One championship provision release, we already adjusted some of our assumptions in Q3, and the one in relation to the constructors’ championship, as we said, is encompassing the full-year guidance. We don’t go into the details of the size, but it’s not very material, some few millions.

On hedging, what you expect in Q4: I commented some while ago as to the fact that we were expecting a negative foreign-exchange impact of around 200 million. Considering where the spot rate is, that would be lower than that, but still is the reference, so between 150 and 200 million overall, on a full-year basis.

Eduard Aubin (Analyst)

Okay, thank you.

OPERATOR

Thank you. Now we’re going to take our next question, and the question comes from the line of Monica Bosio from Intesa Sanpaolo. Your line is open. Please ask your question.

Monica Bosio (Analyst)

Yes, good afternoon and thanks for taking my questions. I would have three. The first one is on the shipments. They are reflecting the model changeover, but I was wondering if you can give us any feeling, any colors on the fourth quarter. Because last year the fourth quarter was very negative, and so I would expect a positive trend this year on the back of the completion of model changeover, but also on the back of the comparison base. So any colors could be useful.

I know that you do not comment on volumes, but it could be useful this time. And my second question is on the country mix. As many models are approaching the global distribution, should we expect a better country mix in the fourth quarter? And above all, what do you see in terms of country mix for 2027? And, if I can squeeze another one, on the shipments in Mainland China, Hong Kong, and Taiwan: they were down. Is this due to the model changeover, or are there any other particular reasons? Thank you very much.

Benedetto Vigna (Chief Executive Officer)

Thank you. Monica, I think the two deductions that you did are very right. Number one is what you said: because of the model changeover in China, you had this swing in Mainland China. And the second deduction is also correct: Q4, year over year, will increase. So, congratulations for your right deduction. Country mix-wise, you also read it well. Yes, all the models are approaching the global distribution, and this is embedded in the updated guidance that we are providing you, also because the personalizations that we have over there are basically starting to be fully defined for the year-end. Thank you.

Monica Bosio (Analyst)

Thank you. Thank you very much.

Nicolette Terusot (Head of Investor Relations)

Grazie, Monica.

OPERATOR

Thank you. Now we’re going to take our next question, and the question comes from the line of Helen Kosman from Barclays. Your line is open. Please ask your question.

Helen Kosman (Analyst)

Hi, good afternoon, everybody. I have three. First question is on the revenue growth acceleration implied by the flow of the guidance. I think it implies an acceleration to at least 9% from about 6% so far year to date. So I’m just wondering what that might imply in terms of volume and in terms of ASPs. I think we had already said ASP is broadly stable H1/H2. Now you’ve upgraded the guide, so, just to clarify, are we looking at broadly stable volume in Q4, but probably quite a bit higher ASP year over year in Q4?

If you could just confirm if that’s broadly the right thinking to support that revenue growth acceleration. The second question is if I could please ask about the very high share of Specials in the third quarter: 22%. I thought after about 13% in the first half we were saying we expect broadly stable half over half, and now it’s much higher again. Could you just say if you think this will drop very materially in Q4, or is it going to stay elevated, and what might be behind that?

And just finally, again on the FX, Antonio, if you could just say what your euro–dollar assumption is now for the full year and what it is for 2027, please. Thank you so much.

Benedetto Vigna (Chief Executive Officer)

So, Antonio, I think the first one.

Antonio Picca Piccon (Chief Financial Officer)

Yeah, I’ll take that. In terms of volume and ASP for adjusting the guidance, I think we have been clear: we have not been adjusting volumes. Volumes benefit from an easy comp with last year, as Benedetto commented before, and we expect to have ASP slightly higher, in line with the indication given some quarters ago about the fact that the second half would have been slightly better compared to the first one. On share of special series, even this one, I think we have already commented in the past: this year is very special. There is a concentration of special series. We expect this to normalize going forward. And on the assumption for personalization for the year, we started the year guiding for approximately a 20% personalization rate. We are currently above that level, and we assume that the last quarter will not make an exception, so we’ll be in continuity.

Helen Kosman (Analyst)

Sorry, Antonio, my question was on FX — the euro–dollar exchange rate.

Antonio Picca Piccon (Chief Financial Officer)

Sorry — the current spot rate. But for us what really matters is not just that, but even the hedges in place.

Helen Kosman (Analyst)

And you’re willing to share the euro–dollar number that you’re assuming for this year now?

Antonio Picca Piccon (Chief Financial Officer)

Approximately a little more than 1.15, blended between spot and hedges.

Helen Kosman (Analyst)

Both this year and next year?

Antonio Picca Piccon (Chief Financial Officer)

No, we’re talking about the fourth quarter. We’re not talking about 2027. You have to wait, Helen.

Helen Kosman (Analyst)

Okay, all right, gotcha.

OPERATOR

Thank you. Now we’re going to take our next question. And the question comes to the line of Martino d’Ambrogi from Equita. Your line is open. Please ask your question.

Martino d’Ambrogi (Analyst)

Thank you very much. Good afternoon, everybody. The first question is on the ASP again, because plus nine in the first nine months year on year. So should we expect at least mid-single-digit growth also next year just for ASP? And the second is on the Luce that you already fulfilled the orders for ’27. Could you elaborate on where they come from in terms of region, kind of customers? And what are the areas you are not tested yet, which could be an upside going ahead.

Benedetto Vigna (Chief Executive Officer)

Thank you. Thank you, Martino. For the first question, I mean the ASP trend next year, I have to repeat myself: Antonio told you already. So let’s wait for February when we meet the next time. For the Luce, I think that there are four important things that I would like to underline. The number one is that the Luce is in production as planned. The second is that by end of this year we will have a few units on the road. The third is that in Q1 we will have international media test drives first and then test drives for clients. And then all the Luce that we plan to sell next year basically are allocated. So if someone comes, he has to wait one year to get the cars.

So where do we see the potential today? I think there are some areas where the dealers are doing a fantastic job. There are some areas where the dealers can have some more opportunities than others for sure. What we have seen is that there are two things that help people to understand the car better. Number one, when they see it in 3D, physically. And number two, we also see when and how the perception changes when people drive the car. So yes, we see opportunities in some places, but also thanks to the experience and the interaction people will have with the car.

Martino d’Ambrogi (Analyst)

Thank you, Benedetto.

Benedetto Vigna (Chief Executive Officer)

Thank you, Martino.

OPERATOR

Thank you. Now we’re going to take our next question. And the next question comes to the line of Michael Binetti from Evercore ISI. Your line is open. Please ask your question.

Michael Binetti (Analyst)

Hey, Benedetto. Antonio, great quarter. Thanks for taking our questions here. Antonio, just a quick clarification on the ASP. I think it was 8% in the quarter. You reminded us that ASP would be a little higher in second half than in first half. And that’s in terms of euros, the level. I think to be flat, just to orient ourselves, to be flat in the second half versus last year, fourth quarter would need to be down about 1%. That seems unlikely. Would you mind just helping us think about what you assume for 4Q, maybe some of the moving puts and takes around that.

And then on the EBIT bridge for fourth quarter, the mix was 119 million euro positive in third quarter. Maybe you could help us think about the tailwinds and headwinds for fourth quarter relative to that number. Because I think you previously told us the second half mix would be above first half. If we can orient our models around that, maybe 85 million or more coming from mix in the fourth quarter. Maybe you could just help us think about the other items in the EBIT bridge that change in fourth quarter.

Antonio Picca Piccon (Chief Financial Officer)

Sure. The answer to both your questions, Michael, is that it’s still the same I gave you the previous call, last end of July. Meaning in terms of ASP, we still expect to have H2 slightly better compared to H1, so you can do the math. And I said it’s slightly better. And in terms of the mix/price variance, even there, we said we expect it to be slightly better in H2 compared to H1. So no change in this respect. Where we do expect to have in the last quarter different is that in terms of cost, we have an incidence of expenses for marketing and events higher compared to Q3, and we still expect to have D&A further growing compared to the previous part of the year. There is an acceleration which is consistent with introduction of new models.

Michael Binetti (Analyst)

Okay, if I could sneak one in. Benedetto, you guys have called out paint and carbon as drivers for the really nice personalization we’ve seen for a while. How do we think about what the paint shop I think is still planned to open in 2027, what that means for the business as you guys take in-house more capability to drive what’s been one of your best inputs to the personalization lines?

Benedetto Vigna (Chief Executive Officer)

So, Mike, we thank you for the congratulations you gave us, and all the team, we don’t like so much because you believe that we are not keeping the pace to open the paint shop. I mean, yes, we will open the paint shop. Sorry. If you come here, you see a nice paint shop. No, I think that that’s very important for the personalization. It shows that we believe in the personalization, also because we put at the center our client. I can tell you that we had a deep analysis with Antonio and the team. I would like to share with you some things. Number one, when we talk about the personalization, one third is coming from the materials clients are selecting, one third in value is coming from the exterior, including the painting, the color, and one third is coming from what the client selects in the cabin.

So it’s equally spread. We have an interesting outcome that I would say we are very proud of, because all the personalization that we are developing are finding the right—let’s say they are pleased by our clients. Thank you very much, guys. Thank you, Mike.

OPERATOR

Thank you. Now we’re going to take our next question and the question comes to the line of Horst Schneider from Bank of America. Your line is open. Please ask a question.

Horst Schneider (Analyst)

Good afternoon. Thank you for taking some nice questions. I try again, the first one on 2027. Even though you said you don’t answer many questions about 2027, but I looked up the Q3 ’26 call transcript and when we asked you there about the next year, basically you said you want to have as smooth and as linear as possible expansion of profitability in absolute terms. So it seems from today’s perspective, when I count the various levers—so we have got the Dodici Cylindro Manuale, a higher 296 share, F80 should sell higher—it seems to be a pretty strong year.

It seems to be anything but smooth and linear. So therefore maybe you can share thoughts why it should be just smooth and linear next year. The second question is maybe a standard question about residual value trends, if you can share any update. I’ve seen that maybe the Dodici Cylindro is weakening a bit. Maybe you have got a comment on that. And the third question is more towards the split between ASP growth and volume growth going forward. At the moment we see ASP growing a lot going forward. Do you want to normalize that again and how you aim to achieve that? Thank you.

Benedetto Vigna (Chief Executive Officer)

Thank you, Horst. I will take a couple of questions and then Antonio will elaborate on the mathematical linearity. So the residual value, we see that they are very sound across different models and across different countries. And we are very pleased because we see that the residual value is very good. Okay, that’s important. And this is true also, let’s say, for different models, either the recent one or the less recent one. When it comes to the question, how much should you expect in mix and volume? If the question is about ’27, you have to bear with us. Like we said also to your colleague, in February we will tell you ’27 and then we will tell you all the drivers that we see for the growth. And on this I would like to give the word to Antonio for the mathematical linearity.

Antonio Picca Piccon (Chief Financial Officer)

Thank you. Thank you, Benedetto. But maybe I start from the first one where you just—I just want to make a comment. Last year we said that we would have expected development smooth and linear. That is what we said at the capital markets day. What went differently, if I look at 2026 compared to our initial expectations, is basically two elements. The first one is the level of personalizations. We guided for 20%. We are above that level, obviously.

And on that, I repeat myself, we have a shorter visibility compared to the order book because we allow our clients to define the level of their personalization until three to four months before delivery. So it’s something, it’s a kind of discovery. And this has been supported by the concentration of special series. The second element which makes a difference is the foreign exchange rate. At the capital markets day we said we would have expected 1.20. We are lower than that. We are benefiting from this. And obviously the hedges that we adjust from time to time may have a carry-forward effect depending on where the spot rate will go. So that is what I can tell you. But the capital markets day assumptions remain intact in terms of how we think about the development and introduction of new models.

No change about that. Mix and volume only with respect to Q4, we expect to have still a relevant mix. I said in my commentaries to the guidance that we expect personalization rate to be in line with the recent months. And this is due. And this is the same also in terms of product mix. So my expectation is this is still the main component in guiding the results for the rest of this year.

Horst Schneider (Analyst)

Thank you. My question was more relating to volume/mix in general, not ’27. Also beyond ’27. So, for example, you could stretch F80 deliveries, right? I’m not sure if you can comment or want to comment on that, but I could just give it a try.

Antonio Picca Piccon (Chief Financial Officer)

Can stick only to the fourth quarter of this year.

Horst Schneider (Analyst)

Okay, that’s great. Thank you.

Benedetto Vigna (Chief Executive Officer)

Thank you.

OPERATOR

Thank you. Now we’re going to take our next question. And the question comes to the line of Tom Narayan from RBC. Your line is open. Please ask your question.

Tom Narayan (Analyst)

Yes, thanks for taking the questions. I also have three. So the first one, personalization did exceed your initial expectations at 21%. I remember at the capital markets day last year, I think we were shown personalization at work and we were told that the carbon fiber supply was kind of a resistance factor and it limited, I think, how much you could do. Is this now less of a headwind? And then the second question, we are hearing about some affordability risks creep in. I know in the auto industry—now I know Ferrari is not an auto company, it’s a luxury company—but just curious if you’re seeing any demand impacts on maybe more lower-priced offerings like Amalfi.

And then lastly, residual values—plug-in hybrids are now a much bigger portion of deliveries than they were a couple years back. The issues that you saw a couple years ago on plug-in hybrids now in the rearview mirror, was it just a function of getting the dealers to educate consumers on these products?

Benedetto Vigna (Chief Executive Officer)

Thank you, Tom. I think that we are not a luxury company. We are a unique company that is luxury and technology. So I think it’s important because we care about this uniqueness that was also underlined in different messages through the capital market day. Coming to the—I got this through the question you gave us, the first one. I think you said it well, you understood well. The story of residual values on hybrid is changing because of two reasons. Number one, the dealers are getting more used also to explain how to use the hybrid. And two, the people are getting more and more in love with the hybrid technology because of the advantage that the combination of electric engine and thermal engine are giving.

So you saw it, and I have to say that we have been visiting several dealers that have been developing very simple and clear educational material, explaining people how to use it. The story of the personalization—you remember well—there was in the past a shortage of carbon. We have been able to nail down some good, let me say, contracts on the supply side. So that is not a limiting factor. So we don’t see it as a headwind. We are, obviously, since this does not depend on us, always looking at what is happening. That’s clear.

The story of the second question. We see healthy demand across all the models and across all the geographies. There are some areas where, for example, the hybrid is preferred to ICE and vice versa, or the six cylinder to eight cylinder. But we see a healthy demand across all the models. And I would say we are very pleased about, let’s say, the products we are able to offer, we can offer our clients. This does not mean that it is complete because you will see other things getting out pretty soon.

We have always to keep delighting our client. Thank you. Thank you.

OPERATOR

Thank you. Now we’re going to take our next question. And the question comes from the line of Thomas Besson from Kepler Cheuvreux. Your line is open. Please ask your question.

Thomas Besson (Analyst)

Thank you very much. Good afternoon and congratulations on the quarter. Three questions, please. First, have you been able to hedge in decent proportions for 27/28, taking advantage of the exchange rates below 1.15, or not yet? Second question on the Luce. Could you give us a profile of who bought it so far? Is it 50/50 existing customers, new customers, as you thought, or different? And give us some idea of the geographies and maybe how many units, broadly speaking, you plan to ship in 27.

And last question. Small things in terms of financial impact, but I noticed the spare parts contributed to volumes. Is there any acceleration in this or is that just an accident that we see in the bridge this time around? Thank you.

Benedetto Vigna (Chief Executive Officer)

Okay. I think so. Luce, we cannot—we don’t want. We know, but we cannot provide you the split between repeaters and the new client. What I can tell you is that we have a good mix. It is a good mix in terms of client; it is a good mix also in terms of geography and, let me say, there is not a specific pattern. We see the interest coming from people of different age and different countries. The other part is about the spare parts. Clearly there is a growth in Q3 also because—you said it well—there is an increased use of the cars. So when you use more cars there is a probability that you need a little bit more spare parts. That’s the only reason. There is nothing strange. For the hedging—

Antonio Picca Piccon (Chief Financial Officer)

Yeah, thank you, Benedetto. Yes, we already covered. We use a 12‑month rolling foreign exchange rate policy and therefore every month we hedge for the next 12 months with a view to be approximately 70% hedged. So, clearly, the more you go ahead to 2027, the more you benefit from the reduction of the spot rate that we’ve been enjoying the last few months. And there is a portion of that in every single future quarter.

Thomas Besson (Analyst)

Thank you very much.

OPERATOR

Thank you. Thank you. Now we’re going to take our next question. And the question comes from the line of Anthony Dick from ODDO BHF. Your line is open. Please ask your question.

Anthony Dick (Analyst at ODDO BHF)

Yes, hi, thank you for taking the questions. I had also three. The first one is on the follow‑up on the special series. I know this year is a special year with the 296 Speciale, but still, in terms of the pace of the release of the new special series, we had the 12‑cylinder manual this year and maybe one coming in the next couple of weeks. It also seems there’s more special series being released more frequently. So I was just wondering if that’s purely a function of the life cycle and the model planning or if it’s also a sort of conscious decision by yourself that these are the segments where you see the most demand and you can expand the most.

The second question is on the fat. So you mentioned around 50 units delivered, which is also still quite a bit below what we saw on the Daytona SP3. I think it was up 70, 80 units per quarter. Do you also intend to reach that level at some point or do you see a more smoother delivery cycle? Do you feel you’ve already reached the current run rate, basically? And the last question I had is on D&A, which increased quite substantially in Q3, and I think you also increased the full‑year guidance a little bit. Just wondering if that was purely linked to the new models or there’s also some fixed assets in there, maybe some accelerated depreciation on some, or if it’s just really also the model planning and model lifecycle that we see there. Thank you.

Antonio Picca Piccon (Chief Financial Officer)

Thank you, Anthony. I take the three of them. Special series: the concentration is just a result of the model phasing; it is there by design. Do you expect to reach Daytona level at some point? We’ve not disclosed. We said, however, that we want to grow smoothly the delivery pace of the fat. With respect to D&A, I think it’s the assumption since the beginning of the year that we commented a number of times, and this is entirely due to the new model introduction. As soon as we start production of a new model, then we start having D&A accruing to the P&L. Thank you very much. You’re welcome.

OPERATOR

Thank you. Now we’re going to take our final question for today. It comes from the line of Jose from J.P. Morgan. Your line is open. Please ask your question.

Jose Asumendi (Analyst)

Thank you very much, very kind. And congrats on the strong quarter. I think in the light of the model changeovers and the higher costs and the topic of higher industrial cost and R&D, not for 26, 27, but just end‑of‑the‑decade capital markets day targets. How do you see this trend, this industrial cost basically becoming more of a neutral impact, which obviously would enhance margins business? And then second, a bit more shorter term, please. How do you think about geographical mix into the end of the year? Thank you.

Benedetto Vigna (Chief Executive Officer)

So you want to go for the—I’ll go for the—

Antonio Picca Piccon (Chief Financial Officer)

First one, I think, is—I take it more as a question on development of R&D. I just remind you that there we see the R&D expense in the variance. We have D&A that is dictated by the model life cycle. We have R&D expenses for innovation for the sports car business. And the other piece is the development of expenses from Formula One. The area that obviously we have less control on is development for Formula One because that is dictated by the budget cap evolution that has been growing the level of expenses in the last few years.

Okay. As far as what we are concerned in terms of sports cars—so the portion related to innovation—we think of that as a rather smoothly growing line of expenses. Okay. But very smoothly and lightly.

Benedetto Vigna (Chief Executive Officer)

The second one, you say the geo mix is moving, aligned with the model change. And so everything is moving, I would say, according to the plan. And, you know, we are—this was the last question. I would like to say a couple of things. One, I would like to thank you for the congratulations that you did to the team. There is a lot of work behind that. Thanks for appreciating that. And I would like also to congratulate you because I have to say that all the questions that you did are clearly showing that you have been listening and studying the material.

We like it because there is someone reading what we do. Thank you. And also thanks for the time and for all your questions. They are very useful for us and to do a better job, to continue to do a better job for you, for all the shareholders. And I wish you a good morning, good afternoon, and thanks again for your attention. Thanks to Nicolette, thanks to all the team. Grazie and good evening.

OPERATOR

This concludes today’s conference call. Thank you for participating. You may now all disconnect. Have a nice day.

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