The Currency LineThin moat

Ferrari (RACE) — moat facet

Six points of a quarter's profit growth was the euro, and Ferrari tells you so if you read the constant-currency line.

Ferrari's revenue rises when the euro falls, and it discloses the difference every quarter.

Q2 2026 growth: what was the business, what was the euro (%)+8%Revenue reported+11%Revenue constant FX+10%EBIT reported+16%EBIT constant FXSix percentage points of EBIT growth was translation - in the unhelpful direction.
Ferrari publishes both numbers every quarter. When they diverge by several points, the difference is not the business.

The June 2026 quarter is the clean example: revenue up 8% as reported and 11% at constant currency, EBIT up 10% reported and 16% at constant currency.1 Roughly a third of the reported growth was consumed by translation. Ferrari sells in dollars, pounds, yen and yuan and reports in euros, with a cost base concentrated almost entirely in Italy.

It hedges — the July guidance revision cited "lower than anticipated currency headwinds, net of hedges" as one of two reasons for the raise.2 Hedging smooths the timing rather than removing the exposure.

The reason this matters more for Ferrari than for most exporters is the cost side. A carmaker with plants on three continents has a natural hedge; Ferrari builds everything in Maranello and sells it everywhere, so the entire currency mismatch lands in the margin.3

It also means the constant-currency figures are the ones that describe the business. Reported revenue growth of 7.0% in 2025 and 6% in the first half of 2026 understates what the company actually did on price and mix.

Read the constant-currency line first. The gap between it and the reported number is the part management does not control.

Moat trajectory: Holding steady

Currency helped in 2026 and will not always. Ferrari hedges and discloses constant-currency growth, which is the honest read; the direction of the euro is not a moat.

The number that tests this moat
Reported
Constant-currency against reported growth
Q2 2026 EBIT +16% cc against +10% reported

Six percentage points of a quarter's profit growth was translation, in the unhelpful direction. Revenue grew 8% reported and 11% at constant currency. Ferrari reports in euro, sells heavily into dollar-linked markets and hedges, and it discloses both figures every quarter for exactly this reason. Read the constant-currency line: when the two diverge by several points, the difference is not the business.

Source: Ferrari Q2 2026 results press release ↗
⚠ Threats to the moat
⚠ THREAT 01
Six Points of a Quarter's Growth Was Translation
Currency is not a business, and a run of years where it helps makes a good story look better than it is.
References
  1. ReportedThe June 2026 quarter is the clean example: revenue up 8% as reported and 11% at constant currency, EBIT up 10% reported and 16% at constant currency. Roughly a third of the reported growth was consumed by translation.
    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. ReportedIt hedges — the July guidance revision cited "lower than anticipated currency headwinds, net of hedges" as one of two reasons for the raise. Hedging smooths the timing rather than removing the exposure.
    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 ↗
  3. ReportedA carmaker with plants on three continents has a natural hedge; Ferrari builds everything in Maranello and sells it everywhere, so the entire currency mismatch lands in the margin. It also means the constant-currency figures are the ones that describe the business.
    Ferrari N.V., Form 20-F for the year ended 31 December 2025 (SEC, CIK 1648416) — Item 4, Information on the Company. Ferrari sells in over 60 markets worldwide through a network of 181 authorized dealers operating 195 points of sale as of the end of 2025; the largest dealer accounted for approximately 3.0% of shipments and the fifteen largest for approximately 25%. Allocations are determined by geography and dealer on metrics including expected developments in the relevant market, the number of cars sold historically by the various dealers, dealers current order books and the average waiting time of the end client in the relevant market; an order reporting system collects and monitors end-client orders and assists in production planning, allocation and dealer management. Ferrari rewards loyal clients through driving events and other initiatives and, most importantly, offers its most loyal and active clients preferential access to its newest, most exclusive and highest value cars. It states that resilience of the car value after a period of ownership is an important competitive dimension because higher resilience decreases the total cost of ownership and promotes repeat purchases, which it believes is a strong competitive advantage. The company intends to continue pursuing its controlled volume and growth strategy in line with the business plan announced at its October 2025 Capital Markets Day and plans to launch an average of four new models per year over 2026 to 2030. Six new models were launched in 2025 — the 296 Speciale, 296 Speciale A, Amalfi, 849 Testarossa, 849 Testarossa Spider and the Ferrari Luce, its first full electric model. The first reveal phase of the Ferrari Luce took place in October 2025 with the presentation of its key technical components and product development strategy, followed in February 2026 by the unveiling of the interior design and the announcement of the model name; the current product portfolio includes cars presented in 2025 for which shipments will commence in future years. The portfolio comprises nine Range models, four Special Series models and one Supercar, the F80. Scuderia Ferrari is described as the most successful team in the sport history, having claimed 16 Constructors and 15 Drivers world titles since the inaugural World Championship in 1950, and Ferrari won the 24 Hours of Le Mans in 2023, 2024 and 2025. Personalization runs from the Atelier through the Tailor Made program, whose dedicated designers guide clients through exclusive materials, and the One-Off program; existing Tailor Made centers are in Maranello, New York and Shanghai, with new centers announced for Tokyo and Los Angeles by 2027. All production takes place in Maranello, Italy, where the e-Building, inaugurated in 2024, is used to produce and develop models with internal combustion, hybrid and full electric powertrains as well as strategic electrical components including high-voltage battery packs, e-axles, inverters and electric engines; construction of a new paint shop began in 2024, which will allow Ferrari to satisfy further personalizations in-house. The company had 5,718 employees. — FY2025 · publ. 2026-02 · source ↗
Sources
Generated September 23, 2026