Ferrari reported a powerful close to 2025, beating market expectations and triggering a significant rally in its share price. On Tuesday, the luxury automaker’s stock jumped as much as 10% in Milan, settling with an 8.4% gain following the release of its fourth-quarter and full-year results. The company posted annual net revenues of 7.15 billion euros, a 7% increase year-over-year. This growth was achieved despite a slight 1% dip in total shipments to 13,640 units, highlighting Ferrari's successful "value over volume" strategy. Profitability remains high, with EBIT margins expanding to 29.5% and industrial free cash flow surging 50% to 1.54 billion euros. Looking ahead, Ferrari has forecast a minimum 6% rise in core earnings (EBITDA) for 2026. The company is targeting an EBITDA of over 2.93 billion euros for the upcoming year, supported by a 39% margin goal. This outlook is bolstered by a record-breaking order book that now extends through the end of 2027. The performance in the final quarter of 2025 was particularly strong, with adjusted EBITDA rising 9% to 700 million euros, surpassing the 668 million euro consensus. Revenue for the quarter hit 1.8 billion euros, driven by a rich product mix and high demand for vehicle personalization. Key model transitions are currently defining the brand’s trajectory. The phase-out of the Daytona is being balanced by the ramp-up of the F80 supercar. Additionally, Ferrari has increased its focus on its first fully electric model, the "Luce," which is scheduled for its official reveal in Rome on May 25. The brand's 2030 strategy remains focused on exclusivity and technological evolution. Ferrari aims for a balanced portfolio consisting of 40% internal combustion engine models, 40% hybrids, and 20% electric vehicles. Investor confidence has been further reinforced by a substantial share buyback program. A new multi-year initiative of 3.5 billion euros is underway, with the first 250 million euro tranche currently being executed through May 2026. Market indicators show Ferrari continues to act as a defensive luxury asset, largely insulated from the broader automotive sector’s volatility and regional slowdowns in China. The company’s ability to maintain pricing power and expand margins through lifestyle activities and racing sponsorships remains its primary growth engine.