⚠ Six Points of a Quarter's Growth Was TranslationModerate threat

Ferrari (RACE) — threat to the moat

Currency is not a business, and a run of years where it helps makes a good story look better than it is.

A meaningful share of Ferrari's recent growth is the dollar weakening, and the company says so.

Reading growth without the currency (Q2 2026, %)8%Revenue reported11%Revenue const FX10%EBIT reported16%EBIT const FXA run of helpful years makes a mix story look better than it is. It reverses without warning.
Currency is not a business. Ferrari hedges and discloses both figures — the constant-currency line is the one that describes the company.

The 2026 guidance raise was attributed partly to "lower than anticipated currency headwinds, net of hedges."1 Ferrari reports in euros and sells a large share of its cars in dollar-linked markets, so a weaker euro flatters revenue and margin without a single additional car or option being sold.

The Q2 2026 numbers make the size visible: revenue grew 8% as reported and 11% at constant currency, and EBIT 10% reported against 16% constant currency.2 Six percentage points of EBIT growth in one quarter was translation, in the unhelpful direction — and the disclosure exists precisely because it swings both ways.

This is not a criticism of the business; every exporter has it, and Ferrari hedges. It is a caution about reading the growth rate. A run of years where currency helps can make a mix-and-personalisation story look stronger than it is, and the reversal arrives without warning from anything operational.

Read constant-currency growth, not reported. Ferrari publishes both every quarter. When the two diverge by several points, the difference is not the business.

References
  1. ReportedThe 2026 guidance raise was attributed partly to "lower than anticipated currency headwinds, net of hedges." Ferrari reports in euros and sells a large share of its cars in dollar-linked markets, so a weaker euro flatters revenue and margin without a single additional car or option being sold.
    Ferrari N.V., second-quarter 2026 results press release (filed with the SEC as an exhibit to Form 6-K). Net revenues of EUR1,938M, up 8% and up 11% at constant currency; EBIT of EUR605M at a 31.2% margin, up 10% and up 16% at constant currency; EBITDA of EUR755M at a 39.0% margin; net profit of EUR463M; diluted earnings per share of EUR2.62; industrial free cash flow of EUR276M, up 39%. For the first half, net revenues of EUR3,786M (up 6%), EBIT of EUR1,153M at a 30.5% margin, net profit of EUR876M, diluted EPS of EUR4.95 and industrial free cash flow of EUR929M (up 14%). Second-quarter shipments totalled 3,366 cars against 3,494, with EMEA up 210 to 1,856, the Americas down 206 to 787, Greater China down 89 to 185 and the rest of Asia-Pacific down 43 to 538; first-half shipments were 6,802 against 7,087, with EMEA 3,314 (down 33), the Americas 1,817 (down 198), Greater China 440 (down 71) and the rest of Asia-Pacific 1,231 (up 17). Results were attributed to personalisations and mix, with deliveries of the 12Cilindri, 12Cilindri Spider, Purosangue and 296 Speciale families rising while the 296 GTS, Roma Spider and SF90 XX families phased out and the Amalfi and 849 Testarossa ramped; racing revenue rose on sponsorship and on the supply of power units to other Formula 1 teams. Full-year 2026 guidance was raised to net revenues of about EUR7.60bn from about EUR7.50bn, adjusted EBITDA of at least EUR2.97bn (at least 39.0% of revenue), adjusted EBIT of at least EUR2.26bn (at least 29.5%), adjusted diluted EPS of at least EUR9.68 and industrial free cash flow of at least EUR1.55bn, on stronger personalizations than initially expected and lower than anticipated currency headwinds, net of hedges. Chief executive Benedetto Vigna stated that the order book entirely covers 2027. More than EUR800M was returned during the quarter — a EUR599M dividend instalment and EUR209M of share repurchases — taking the company from net industrial cash of EUR388M at 31 March 2026 to net industrial debt of EUR131M at 30 June 2026. Trailing twelve-month figures to June 2026 are net revenues of EUR7,353M, net profit of EUR1,639M and diluted EPS of EUR9.23. — Q2 2026 · publ. 2026-07 · source ↗
  2. ReportedThe Q2 2026 numbers make the size visible: revenue grew 8% as reported and 11% at constant currency, and EBIT 10% reported against 16% constant currency. Six percentage points of EBIT growth in one quarter was translation, in the unhelpful direction — and the disclosure exists precisely because it swings both ways.
    Ferrari N.V., second-quarter 2026 results press release (filed with the SEC as an exhibit to Form 6-K). Net revenues of EUR1,938M, up 8% and up 11% at constant currency; EBIT of EUR605M at a 31.2% margin, up 10% and up 16% at constant currency; EBITDA of EUR755M at a 39.0% margin; net profit of EUR463M; diluted earnings per share of EUR2.62; industrial free cash flow of EUR276M, up 39%. For the first half, net revenues of EUR3,786M (up 6%), EBIT of EUR1,153M at a 30.5% margin, net profit of EUR876M, diluted EPS of EUR4.95 and industrial free cash flow of EUR929M (up 14%). Second-quarter shipments totalled 3,366 cars against 3,494, with EMEA up 210 to 1,856, the Americas down 206 to 787, Greater China down 89 to 185 and the rest of Asia-Pacific down 43 to 538; first-half shipments were 6,802 against 7,087, with EMEA 3,314 (down 33), the Americas 1,817 (down 198), Greater China 440 (down 71) and the rest of Asia-Pacific 1,231 (up 17). Results were attributed to personalisations and mix, with deliveries of the 12Cilindri, 12Cilindri Spider, Purosangue and 296 Speciale families rising while the 296 GTS, Roma Spider and SF90 XX families phased out and the Amalfi and 849 Testarossa ramped; racing revenue rose on sponsorship and on the supply of power units to other Formula 1 teams. Full-year 2026 guidance was raised to net revenues of about EUR7.60bn from about EUR7.50bn, adjusted EBITDA of at least EUR2.97bn (at least 39.0% of revenue), adjusted EBIT of at least EUR2.26bn (at least 29.5%), adjusted diluted EPS of at least EUR9.68 and industrial free cash flow of at least EUR1.55bn, on stronger personalizations than initially expected and lower than anticipated currency headwinds, net of hedges. Chief executive Benedetto Vigna stated that the order book entirely covers 2027. More than EUR800M was returned during the quarter — a EUR599M dividend instalment and EUR209M of share repurchases — taking the company from net industrial cash of EUR388M at 31 March 2026 to net industrial debt of EUR131M at 30 June 2026. Trailing twelve-month figures to June 2026 are net revenues of EUR7,353M, net profit of EUR1,639M and diluted EPS of EUR9.23. — Q2 2026 · publ. 2026-07 · source ↗
Sources
Generated September 23, 2026