Q2 2025 Ferrari NV Earnings Call
Okay.
Good day and thank you for standing by welcome to Ferrari 2025, Q2 results Conference call.
At this time, all participants on a listen only mode.
After the Speakers' presentation, there'll be a question and answer session.
To ask a question during the session you'll need to press star one and one on your telephone.
Yeah and automated message advising go ahead is raised.
Do you feel your question. Please press star one and one again please.
Please be advised that today's conference is being recorded I would now.
Now I'd like to hand, the conference over to your speaker today.
Luckily talk russert head of Investor Relations. Please go ahead.
Thank you Maggie and welcome to everyone, who is joining US today, we plan to cover the group's second quarter 2025, but I think the results and the duration of the call is expected to be around the 60 minutes today's call will be hosted by the group CEO, Mr. Ben <unk> and group CFO, Mr. Antonio pickup is gone.
Or I live onto my theaters are available in the investors section of the periodic offers to website and at the end of the presentation, we would be available to answer your question Joseph.
Before we begin let me remind you that any forward Waterloo gene statements, we might make to you in todays call are subject to the east and I think this mentioned in the Safe Harbor statement included 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 corner.
So.
Okay got it thank.
Thank you everyone for joining us today.
Spike in uncertain macroeconomic environment ongoing geopolitical tensions and market volatility externality, we continue to execute our business plan with a focus discipline and confidence.
We basically is confidential and the solidity and uniqueness so that wouldn't be the slaughter the remarkable level of visibility that we enjoy and the continued loyalty of our community.
We remain confident and well prepared to litigate potential macro threats, including trade the pesos current ratio.
So market volatility, which required an increased level of cautiousness and why.
We can see that.
Not completely immune to global events, we might win contest our ability to adapt has been remarkable.
Hey, Matt what factors that underscored our solidity and continuous progress there are five I would like to underline we have all of you. One we are on track with our product development in particular with the Ferrari electric which added a pleasure to divest a couple of weeks ago on the racetrack and they can play with.
People are excited we are for the <unk> launch.
We continue to have all our standing offering in July we introduced the Ferrari.
The latter model of the 15 Lauder Road map that we announced that in 2022 during our last capital market days and our third Alonso Dcs upstairs. The two special serious the 296 page Ali, especially alabaster such.
Such a number of new model launches and technology advancement required an incredible demand.
And effective management of complexity and at the most of the agility.
I think we should all be proud of especially in the current context.
We continue to all the strong order book entering 'twenty 'twenty seven.
Without considering the new launch of the cash.
And we've all the range models currently in production substantially sold out.
Indeed, the newly launched the Ferrari Amas amongst the EBIT at the initial stage of the order collection and the demand for the 296 speech Harley family is significantly I, nearly reaching full coverage of the life cycle.
We continue to invest and what makes us Ferrari.
Ryan Centricity product excellence technology advancement and it is especially thanks to the avs well that where the people that we can continue to evolve and innovate.
Proof of this out of the 341 colleague who were internally awarded for Redeveloping patents ABS in 2024.
And last but not least in line with our plans the production ramp up of our rebuilding is proceeding at pace and he is the construction of the new pace shop, where we have just finished the walls and we are about to install the equipment. In addition, during the quarter. We began the construction of a new truck mirror our.
Facilities dedicated to support testing this will announce the accuracy and repeatability of road testing.
Further effort to assure product excellence.
While important is that we continue to deliver strong financial results in Q2, 25, so continuing to grow on all key metrics.
A few key numbers to share with you and to highlight one so the revenues reached approximately $1 8 billion Euro a four 4% growth year over year.
Flat deliveries.
Stronger profitability with EBITDA in excess of 700 million Euro and three the investment cash flow at 230.
Europe.
At the beginning of July we also had over 1500 guests from all over the world on a monthly cost for the product.
Of the new Ferrari MLC, our latest V. Eight range models, the Ferrari MRC redefines the concept of contemporary Sportiness, combining high performance versatility and refining the statics the.
And the name of the New model is a tribute to suffer in Italy, and one of the most fascinating cost lines in the world I'm asking was chosen to once again associate Ferrari, we've Italian beauty and they placed that symbolizes our country.
I was this for the first of three incredible <unk> of the world premieres, where we achieved unprecedented the client engagement and brand visibility. Indeed. These new model was also displayed in the town's main squares for all residents over there must be cost the tourists in the enthusiast to enjoy.
This model will allow us to not just existing clients and attract new ones enlarging the Ferrari community and the initial feedback has been extremely encouraging.
Moments like this always remind us of the importance of human relations.
Such moments strengthen the sense of community and unite people with the company and with our February Ste.
From our theoretical case to our racing days embracing challenges to our world premieres. Each of these exceptional events is designed to create a unique memories and experiences which are essential to nurture our communities passion and delivery our brand Halo.
Within client events also raising activities play a key role at the secret to our staff in Kushan last June we presented the new 96, GT III Evo a risk cost that will make its debut in 2026 season. The 290 683 evil perfectly fits.
We are in the range of our activities and these instrumental to enrich the experience on track well about what are you seeing clients.
And on the subject of racing I will once again express my personal congratulations to the Freddie theme or secure their third consecutive win at the 24 hour Civil Amanda. This is an incredible achievement and an encouraging reminders of our ambitions. Thanks to these extraordinary yourself so that it will now keep the witness trophy.
Torres exactly granted to those who secure victory in three consecutive editions and in the same spirit, we are making good progress in formula One we know that the season started below expectation.
The team is constantly fighting.
For volumes and wins.
Lastly in line with our racing Heritage and Spirit of innovation, we have presented the February Hyperscale project. These revolutionary boat is currently under construction in Italy, and Italy C. A stake on an unprecedented new sporting challenge in the water savings, allowing us to be to keep it.
And pushing the limits of possible in the new Arena. Moreover, open innovation and two way technological transfer between the spot cash and now take our sector. A key in this project added dynamics energy efficiency power management, a flight control system or just a few examples in this respect.
All these challenges remind us that we have to continue to improve inevitably. We do we are focused determination and four wheels underground and now I would like to hand over to Anthony to review in detail the Q2, 2025%.
Okay.
<unk> been a vector and good morning or afternoon to everyone joining us today.
Starting on page five we provide the highlights of the second quarter, which represents a solid continuation of the year.
First of all the second quarter was basically not impacted by the incremental tariff in the U S. As we leverage the inventory already present in the country.
Compared with the same quarter of last year revenues and profitability grew low single digits with flat delivery.
Mix and personalization, we are the main drivers of growth along with rising revenue, which led to a particularly strong percentage margin and a solid industrial free cash flow generation.
On page six we deep dive into our Q2 2025 deliveries.
Yeah.
Shipments in the quarter were driven by the 296 Etfs, the PURA sanguine and Theyre almost by there.
Yes over 90 X X family increased its contribution.
The digital and the family continued its ramp up phase, while the 286 GDP decreased and DSS 90, Spider approaching the end of its lifecycle.
Shipments of the Daytona SB three were lower than the prior year and sequentially decreasing in line with our plans to conclude deliveries in the third quarter of 2025.
In the quarter, we had a significant changeover of models and despite the gradual phase out of the REIT on SB three the product mix was sustained by the higher end of our product offerings, namely the SF 90 X X family and the Dod issued in the refinery.
As customary the geographic breakdown reflects the different product cycle as well as the company deliberate allocation strategy.
On page seven and then add the revenue bridge it shows a five 1% growth versus the prior year at constant currency.
Okay.
Cars and spare part was driven by the recent browsers and country mix as well as IR personalization.
Personalization is keep on being very strong accounting for approximately 20% of total revenues from cars and spare parts supported by right on SB, three and USF 90 X X family in terms of model and mainly by the adoption of carbon and paintings in terms of offering.
Sponsorship commercial and brand increased thanks to the additional sponsorship we have this year and improved performance of the lifestyle activities as well as higher commercial revenues linked to the better prior year Formula one ranking.
Currency net of hedges in place and I think as likely negatively impacted in the quarter mainly related to the U S.
Two years dollar dynamics.
Moving to page eight the change in EBITDA is explained by the following variances.
First mixed price.
Positive thanks, rich product mix sustained by the <unk> and although this is hitting their families.
Increased contribution from personalization.
And a positive country mix supported by the Americas.
These were only partially offset by lower deliveries of the Daytona Speedway.
Second industrial cost and R&D, mainly due to racing and sports as R&D cost expense with flat DNA.
Third higher SG&A, reflecting rising expenses and brand investments and four other was positive mainly thanks to raising and lifestyle activities lower costs due to the formula one season, a ranking of Samsung that we revised downward.
Actually offset by the comparison with last year's release of cars and environmental provisions.
Okay.
Percentage margins were very strong in the quarter with EBITDA margin at 39, 7% and EBIT margin close to 31% also benefiting from Plaid DNA determined by the model changeover.
Okay.
Turning to page nine our industrial free cash flow generation for the quarter was strong at 232 million Europe and reflected the increase in profitability, partially offset by the negative change in working capital provisions in other mainly linked to higher inventory in line with our production plan.
Yeah.
This quarter, the net impact of advances was positive, but far less significant than in Q1.
Capital expenditures were mainly focused on product development and the progress in the new paint shop construction and finally, the seasonal payment of taxes.
Net industrial debt was 338 million at the end of June 2025, also reflecting the dividend payment occurred at the beginning of May.
Lastly in relation to our multiyear share repurchase program of 2 billion Iraq, we intend to resume the repurchases aiming to complete the program by year end.
Okay.
Moving to page 10, we confirm the 2025 guidance with stronger confidence on all metrics and remove the 50 basis point today's current percentage margins. Following the recent agreement on U S tariff.
As well as lower industrial costs in H, two compared to our initial expectations.
All of this based on current information despite the remaining uncertainty with respect to the timeline of application of the lower U S duties on cards and other products manufactured in the European Union, which should impact the second part of the year.
Bearing in mind that for the rest of 2095, we anticipate deliveries deliberately reduced compared to 294 to prioritize quality of revenues over volume.
Software product mix versus the first half of the year, mainly linked to the right on SB three phase out in Q3, and the first units of the FAA the shifting Q4.
Higher SG&A linked to corporate and commercial activities planned for the remaining part of the year.
Higher DNA in line with the development of our portfolio and considering the startup production of new models.
And finally, a greater headwind from FX, assuming that the current weakness of the U S dollar against the euro persist for the remainder of the year.
The first half of 225 reminded us of the words and predictability and importance of agility and flexibility in this context, we continue to execute our strategy with discipline and focus and today's strong results.
Mark continued progress on our growth path backed by our unique business model and the remarkable visibility that we enjoy.
Thanks for your attention and I'll turn the call all that clinical assets.
Thank you Antonio Maggie we are now ready to open the Q&A session.
Thank you very much as a reminder to ask a question. Please press star one and one on your telephone keypad and wait for your name to be announced.
To Australia. Your question. Please press star one and once again, please standby as we compile the Q&A roster.
Our first question comes from the line of Stephen <unk> from Bernstein. Your line is now open.
Yes. Thank you we will have a few.
Questions. Please first of all could you comment on Brazil.
Developments.
In Q.
Key markets.
Secondly, could you give us a bit more detail about why these industrial costs in second half expected to be lower than originally expected.
And third could you talk about why there has been.
We see now.
The change in the R&D capitalization versus amortization, so the lower benefit from this and we saw in second quarter.
Thank you Stephen so the residual value seen in key markets.
We told you last time that the Delaware.
<unk> U K that was market a little bit under pressure.
We put in place are in place some action that are showing.
Good good trend.
We are working also on some some models in the U S, but nothing nothing nothing strange over the line.
I'd say the second one was about industrial costs.
Lower and yet Antonio Ken can comment about the highest as far as the as the actual is concern. This is mainly due to an easy comp versus last year since last year, we had.
I wouldn't call them seasonal buy that we had significantly higher costs for raising in the second quarter.
And this year. These costs are not there and on top of this we have been.
Eric.
Reduced quality cost compared to what we had last year.
If we look forward to the second half of the year the better expectations are now related to the fact that in terms of supply chain costs. What we have experienced in the first half of this year is better than we had originally anticipated.
So call it lower inflation.
Third R&D capitalization in the quarter and why this is simply due to the overlap of our project you know that we capitalized the spending for our models for the development of orders that have been internally approved so it very much depends on that and obviously the portion that the remaining portion of these expenses.
P&L otherwise.
Otherwise related to rating so it very much depends on the pace.
Development of our Thai baht in Formula one and got into a championship.
Thank you so just to be clear the reduction industrial cost doesn't reflect maybe disappointments with a very solid programs.
No absolutely not.
Very clear thank you very much.
Yes.
Thank you.
Just a minute Michelle next question please.
Next we have Duffy tebaldi from UBS. Your line is now open.
Hi, Thanks for taking my questions. So first one regarding your cars and spare parts growth at 3%.
This is Dan.
Lower growth than we have seen in quite some time, so and it seems that the ASP.
Weaker than you.
Maybe some decline in the market expected.
And.
Was that something to do also with personalization or.
How do you expect asps to the Netherlands.
The rest of the year because my impression was that Q3 was meant to be let's say the weakest part of the year, whereas Q2 also ended up being by week. So it would be helpful to get bit.
More clarity there and secondly regarding.
The Cogs and the gross margin was extremely strong.
Stronger than we have seen in a very long time.
And it was somewhat surprising given that your ASP.
Ended up being weaker than expected. So what were the moving parts in the Cogs. That's really led to two to this sort of strength on gross margin and how should we think about it going forward.
And last thing is regarding the U S.
So now the times have been lowered.
I suppose that you will choose to not.
No longer increased prices to the same extent.
But is there going to be maybe in Q3 with some sort of friction because.
<unk> cost were shipped.
We are affected by these higher Todd So how does it work that some clients will get a different price compared to other clients can you just elaborate on that thank you.
Okay, <unk> I think the third one and then the first two Anthony will comment.
As you remember.
We were very timely in announcing the commercial policy 27 on March.
When.
The tariffs were in place.
When does that get in place at 27, 5%. So we will not change the commercial policy is still there.
This new 15% tariff will really become would be implemented because as of now it is not yet implemented they will take some time, but you may remember also that.
When.
Last time, we talked we are in this <unk>.
And we said that the invoice.
When decline will receive an invoice you will have it separated the tariff in a specific box because.
Is it something that we want to make it clear to the client that the one path is the price of what we do and other parties instead of the tariffs that depends on the country.
Let's say the current get sold so when.
The 15% will become really effective and implement and then we will adapt our commercial policy item one and two.
Thanks to the <unk>. The first one is very much overlap to the to the question Ethan asked me before meaning it has to do with the cost of goods sold but first of all carbon fiber growth, 3% why it only depends on the development of the product mix based on our plans I don't know.
And analysts are making their forecast, but basically this is <unk>.
In line with our plan of deliveries in terms of model and as far as personalization is concerned as I said before penetration is 20% and we actually see continuing very strong trend.
So that encourages us significantly.
With respect to cost of goods sold very strong in Q2, I think I already answered earlier I replied to steepen before it's not just.
For the sparkling business, we are also raising and that depends on our cost for racing and adjusting formula one, but even awarded championship. The neighborhood over the course of the year for the rest is better.
The efficiency, if you wanted to act like that or lower inflation.
Including four for quality so that's the.
The main drivers.
Okay.
Does it answer yes.
When you think about.
The rest of the year because and.
Especially in terms of mix and so on the expectation was that <unk> was going to be there.
The bottom for this year. So that's still the case, so Q3 could still be we tend Andy if I look at the park business.
And it goes without saying that Daytona will be lower because it will be the last quarter. We saw it we don't have the FAA to yet.
And we just have a few units of the FAA.
In the last quarter there than the overall development.
All of our margins depends also on the racing activity and the development of the racing activity.
As far as possible with salt is concerned.
Thank you gentlemen, our next question please.
Next we have Adam Jonas from Morgan Stanley. Your line is now open.
Joe I'll everybody.
Sure.
My first question is on the lack of the Kearl.
And.
I'm not trying to get.
Sure any real significant details ahead of things but.
Mind US is this product position.
Four.
Given us your first electric vehicle all electric vehicle.
Is it positioned as more of a.
Halo type of vehicle that would be offered to existing.
If the.
As like a very desired kind of obviously it'll be desired, but more for the existing family. The club members of the club of existing members of the club.
Who you can kind of trust, who will appreciate the engineering and the effort you put into it and also be a good source of feedback when you.
Given it's such a big leap.
Or is it.
Kind of designed to kind of expand and bring in new.
So how do you see right away right off the bat, how do you and I realize it can be both of those things, but I just wanted to ask that question to see where you took it in terms of.
Kind of a more controlled environment trusted family members a member of the house of Maranello or is it kind of a little more ambitious than that before you then launch into the the FERC future generations of electric cars, and then I have a follow up gotcha.
Thank you Adam for the question I can tell you that.
We are about the electric definitely is a good try for you to understand where all of the carriers procedure added but you still have to bear we've asked a few more weeks in October we'll be more clear sorry about that I know Youre Korea's I would be foolish and that is in there too, but it's a good try you did well.
I can tell you that that this gas is meant for the people that wanted.
As I said, we don't want to push the cat and we wanted our people.
To be in love with the cash and.
It's for let's.
Let's say people that are already in the community as well as for people that will join the community because of this addition transition edition to our.
So our offering so it's a PV you cannot try it and then on your hip triangle, sometimes we were the best for drivers on the track on different places, where nobody can see during the day. So yeah. We've asked a few more weeks eight of October it's close.
Okay.
Well I thought it was a very good dry if our device say so myself, but you did better you got me.
Okay Mike.
Question would be.
Are there enough.
Changes there've been some significant changes from key governments.
Especially in the United States, but also possibly in Europe on kind of the timing.
And some of the rules around Seo to emissions and I understand Ferrari.
Design products for C. O two roles you design compelling beautiful products that people want but can't get.
But I am just wondering if theres any impact from I mean, it seems like we don't have an EPA anymore in the United States.
Some of those factors do they at least affect some of that timing or medium or longer term.
Product rollouts in any way.
Of your of your more electric products or or is your answer I think predictably going to be Adam we do our own thing.
Can't control the rules and has nothing to do with us.
Adam I think that for sure.
Fixing if there is any company in the world of pain control.
How the things are moving outside the wall. So we control what we do with.
We proceed as Antonio said, and I said as well a focus determination and discipline and we've exited I think that in time of this in these days when things can change for whatever reason.
The advantage to a company such as Ferrari that is not the big that is more or less in the same place. It helps because we can take a decision pretty fast I think you know that I think we have been the only one that are ahead of the second of April we updated our commercial policy because I think we know what we want to do and now we.
The best way to proceed I think the timings of vessels when it comes to regulation. The regulations are important also for us.
Important for US this is Hawaii.
We are working on the sustainability. So just to make you. An example, I can't remember what I said a couple of conference calls ago. When I said that at the double digit increase account. It is compliant with the current regulation, but we did already some innovation that can help us to make these cat also compliant we refute these kind of cut.
Can be compliant with the future regulation so.
Allow me to Sandridge way when the boundary conditions change.
Good push for US is an opportunity for us to keep challenging gas to keep learning and to keep redefining the limit. So I think this is a I mean.
We keep in consideration and we know what is in our and we can control and what have you said what.
What must be managing.
The external condition, we are managing them.
I think that we.
We are managing pretty well with agility and we have to be always like I see.
With the photoresist Undergrounds will take when they can relate with letters.
No.
Thanks Ben.
Yes.
Adam.
Thank you.
Next question comes from Monica <unk> from <unk>. Your line is now open.
Okay, yes, thanks for taking my questions.
My third question is on the MLC. So I'm just curious with the company.
And what the company I aim switch even with the mild fee.
Do you expect to attract new customers at the core.
Roma.
My second question is on the $2 96.
But is that are you already say that there isn't a waiver will mean demand.
And that.
Basically the order a protein and the completion of the life cycle, but any corridor in time all of the regions. Okay. That's the math could be very useful and my last question is on that <unk> I remember that in the last call.
That.
She Lindsay gets traction.
Traction in China because of the tax.
I'm just wondering what do you see gaining more traction in China. Thank you very much.
Okay. Thank you. Thank you Monica I start from the last one.
Last year last call I was also generic selling double digit in that not only as a cat Bethesda modernization because usually the tax on the WGNA Andrey desire in China. So the number of people that are willing to pay more or less $2 seven times. The price you pay in Italy is lower so this is why he said.
We will have a new cost and <unk> is one of these that will make it.
That is more suitable for the Chinese market, so the amount of fee and they go back to the first.
All of your questions as a.
If you want them.
Two key messages one.
Offer us the possibility to improve the offering in <unk>.
In countries, such as China, because over there the offering was equal with limited with the model we had before and two is it kind of it is men.
By putting together the supporting us in the comfort and the elegance.
The price. This is meant also too.
Bring in our world and our community clients from other brands.
So this is I can tell you that I mean, we are starting to take orders delivery will start.
First semester of next year and I can tell you that we ever do.
Recent amount of clients that are joining our community from other brands.
And the other question you add the number two was about the 296 page I'll. It. The demand is very strong we do not have Amy color or Amy.
I would say yes.
Pattern geographical pattern.
We have people from middle East as well from Japan or U S or.
Europe.
Extremely.
I'm happy and anxious to get the kind of like this.
The comment about the design that is completely new is about also the color offering and our <unk>.
Call. It a lack of agreement or moving for example that theyre, making in attracting attention across the globe.
So so far I would say that that model. We selected that are in line with our expectation in terms of appreciation and also in terms of let's say how the order book is is moving.
Thank you Ben that's a very clear if I may a follow up of housekeeping.
Still the asks about the third quarter.
The last quarter.
To the last quarter.
Daytona will no longer be there.
But we will lap the few deliveries of the effort AP and AR and much more visible impact from the S 90.
90, <unk> and Adobe Chilean they can we say that this could campaigns it could upset.
Ah the lack of Donna I'm, telling you all.
Okay in terms of mix, we expect the second us to be pretty neutral compared to last year.
As a result of the changeover of meaning lower NATO announced disappearing in Q4 and the initial phase of the FAA.
And the ramp up of the effects of FX and VW sedan.
Perfect. Thank you very much very clear thank you.
Thanks.
Thank you next.
Next we have Thomas Svendsen from Calvert Chevron Your line is now open.
Thank you very much I have a few questions.
Just I'll squeeze the shelf hybrids.
In the quarter was the lowest in a couple of years could you give us some indications of what we should expect.
For the next 612 months on the phone I guess.
Lower volumes of the specialty versus where we get our vessels, but just wanted to hear your thoughts on that.
Second question.
You said, you're more confident on the guidance and you remove the 50 bps.
Crushers.
The months of it but it does sometimes you say youre going to align.
The pricing to yourself.
Could you explain why you don't keep this 50 bps.
Elements of Christian.
And lastly.
On the bridge.
Other line was higher than usual for the second quarter in a row you explain why.
Can you tell us whether we should expect the line to stay.
At relatively high level, then partly offset the lower mix in the second half of the year.
Okay.
Thank you Glenn I think the first one the share library that you should not take it.
A bank charter quarter by quarter, what I can tell you is that.
It depends a lot what is offered today if you see what do we what.
We have in our offering we have some.
I get volume caps.
The new zinc and if we ever get so far we announced it in this year three model to average six cylinder hybrid 26, and one eight cylinder turbo so we out of that.
I would just say that.
This demand the ratio depends also on the volume of the scatter we want to produce clearly pulling this expression is a lower volume in 2006, So we may yes.
The light the decrease of the percentage of the average cash because we have more IC to sell.
The confidence.
And then I think.
And so on you can comment in detail sure Hi, it's Matt on this confidence on the guidance and the removal of the 50 basis points. The main reason is that it did.
We added in the explained my explanation, meaning we expect now industrial cost for the second half of the year lower than we had originally anticipated.
I'll pass to compensate together, obviously with the fact that even our own assumptions on on the ranking in Formula one.
Is now different compared to the beginning of the year. Those are the main then within industrial cost. We see there are a number of items going up and down but the main trend is downward.
Back to expectations other than the EBIT line in the second half I haven't done the math, but honestly.
I would expect the growth in terms of contribution.
Of of new sponsors will be lower compared to what we have seen in the first half because last year, we have already.
A number of sponsor a new sponsor Zane still positive vote with respect to do a lower extent.
Better contribution from the former one commercial rights holder should stay there.
So I would expect positive, but not necessarily to the same extent as it was in the first half.
Okay. Thank you very much.
Thank you.
Thank you.
Next we have <unk> from GBM. Your line is now open.
Thank you so a question for very.
Very quick question can you.
Zero.
The stories about you guys delaying the launch of the second electric vehicles due to perceived.
Lack of lower levels of demand as I've talked about quite incomprehensible.
Given that your underlying can you can you clarify exactly what the position is please thank you.
Thank you Flavio its a good question I think of it.
We said in 2022 that in Q4 25, we were going to unveil our electric gas and Thats, what we will do.
We are.
Keeping delivering on promise.
So we are perfectly in line with what we said we are trying to kind of the car is proceeding as planned and there is not a <unk>.
Our of delays single hour delay on this project is very important so it's.
We never talked about the second car or the third that extra cost. So we are very confident okay.
Eight of October when there will be the.
Avail of this class of engineering, you will see what's behind.
The article in our water so let's put it this way you will see it. So you have to be a little bit more weeks of patients and then you will see.
We have we are having a nice evening. So we've been putting another colleague in a place where a lot almost quito's.
Because we have to try to categorize otherwise people see it and take pictures, Unfortunately, local mosquitoes or it lessens, but it's on track.
Sorry for you. Thank you.
Thank you.
Thank you Jason next question please.
Next we have Anthony <unk> from <unk>.
P. H S. Your line is now open.
Yes, hi, thanks for taking the questions a.
Couple of ones on targets.
Firstly I'm just wondering.
You saw in the past couple of months.
Any signs of Cowen cancellations or postponing orders and if this has changed at all since we've had more clarity on the tariff environment.
And then secondly, more on the kind of modeling and cost side, but could you.
Maybe help clarify how you expect tariff costs to evolve in Q3 and Q4.
I know, sometimes you catch your orders.
The different regions. So I'm just wondering if we should expect.
Sure.
Volumes.
27, 5% rate in Q and Q3, there's kind of a wait.
The work around that.
And maybe just the final one is on the Tyco and SB three I'm just wondering if you could share.
The shipments.
In Q3 and Q2, sorry, thank you.
If you manage all this question remember the details sure.
I think from the last one shipment for Q3, we do not provide or sorry, Q3 shipment for the Daytona.
Q3 shipments overall, we do not providing advanced as you may imagine.
That is Daytona is concerned will be around 40.
Todd is expected in Q3, and Q4 well it all depends the political agreement. If you meant the U S side. The political agreement has been reached the question that I mentioned is it still uncertain from when it with actually apply meaning.
Then that would be an executive order to make target lower compared to today as of now we have a certain amount of a certain number of sky that they've been imported at 27, 5% from then on we keep I mean, we will start importing at 15%.
Third the your first question cancellation postponement for a tariff environment, we do not have the sense that carriers have an implication in terms of customers' behavior at least not another clarity in this respect it's more perhaps ive had mentioned, albeit at the minute at all if you.
<unk> different is morningstar somewhere the uncertainty that may have created a sort of wait and see in some areas of this work related to the uncertainty, but it's very difficult to judge because it also.
The order intake very much depend on the cars that we have available for order and since we are close to the end of life cycles of ever at several of our models and the other is sold out we can't really measure.
The overall sentiment in respect with the introduction of a new car at least for now I think it's a good point I think that all one sided.
We have a.
Let's say, you're a model with a portfolio.
More or less all the models sold out and the new model joining.
Our offering now.
The other side we have.
With each of the.
If you look at our order book that is.
It's entering 2027, well and it's not even considering all the order of the car we launched recently.
For example, our record backlog in Asia.
If you consider all Asia, we have distribution of.
Mainland China, because we can't we accounted under different region, where we are with this via the record backlog of four.
For this region so.
It's worth Antonio said, we may have some we can see that is confounded also with the fact that there are not enough model, we can sell so the client.
The offering is not as rich as it is becoming now we've announced window that remodel related and also with the announcement of the other model that we will during the second half of this year remember that this year, we avail of six.
Now six model three.
Have been done.
This will be done from now till end of this year.
Okay.
Okay. Thank you.
Thank you.
Thank you gentlemen, our next question please.
Next we have Henning cosman from Barclays. Your line is now open.
Yes, hi, thank you.
You had asked.
Similar related question, just fabulous earlier, but I'll try a different way.
Also have this 40% <unk>.
<unk> vacation ratio or.
In your 2020 targets from the lost CMV and I'm just wondering.
I appreciate you talked about an extra hour second electric vehicle, but just.
Any chance maybe premature to ask this now but is there.
Any chance to revisit that.
Coming to <unk>.
That's the first question.
And then it actually just because you mentioned all of the remaining launches of the year.
We're quite pleased to see that.
The consequence of the resilience on the pricing.
Launches so far.
Some of them also send about outgrowing enrollment, 20% above the original normal price.
The reason too.
Suspect.
Upcoming launches may not follow that.
Concert and construct.
Pricing strategy.
Strategy.
If I can squeeze a final one just to clarify.
I think until new surface 40, Daytona so for Q3, which I suppose means you'll have delivered about 60 or so in Q2, but if you could just give us the exact numbers as customary that'd be great. Thank you so much.
Thank you and if you remember well, 40% of our offering in 'twenty therapy. That's what we said was going to be electric and <unk>.
Good try but we will assure you in a few weeks at the capital market day.
What are what we are aiming to for the future. We will show, we view and all other colleagues in the call as well as other all the detail of what this company intends to do for the next five years fact number one in fact number two.
Usually I mean.
We do not talk about the specifics of the model.
It's important to keep them a secret also the price is another important factor that.
But we will disclose.
When it's time, we will have.
From now till end of the year, we will have this card launches and then discuss what is what is the prices because imagine.
You also disclose first the price to our dealers and then we can discuss at this point.
It's publicly otherwise would not be fast.
Some people that are playing an important role in our <unk>.
Community for the Daytona I think.
And I can answer you.
You did the math right. So we're approximately 60 in the second quarter.
Okay.
Gotcha.
Timing out.
Thank you.
Next we have Nikolaj Kim from Deutsche Bank. Your line is now open.
Yes, hi.
Deutsche Bank. Thank you for taking my question.
My left.
But coming back to Sandy and I don't want to steal your Thunder, but we are very excited and just give us some idea of what we should look for in terms of the announcements.
What does he mean announcement a lot of the cash no.
On everything on what should we focus on Etsy event.
Look I can tell you that.
Total market they will disclose in detail what this company intends to do in terms of marketing strategy product strategy financial strategy and business plan.
Expect to expect from us to get the same kind of a transparency clarity that we got we need that we share that with all the all the three years ago I think for US transparency clarity is key also because is key for you is helios internally.
We will use this material also to do with the deployment of our strategy for all the people in the company. So.
If I understand well Nicola you. This is the answer to your question. So if you can hear us.
Yes, I don't know what is your plan you will see the same detail you will see what we committed to do.
Until end of this decade.
Okay sounds good yeah looking forward to it thank you.
Thank you.
Thank you.
Next comes from Jos <unk> from Joseph <unk>.
Your line is now open.
Thank you so much whole settlement is from JP Morgan. Thank you so much.
Antonio can you please comment on.
The second half.
When you look at the balance between mixed price and the industrial cost R&D and SG&A do you think there's a chance that the balance of both categories are going to be.
A bit more in the positive territory or more neutral I know you commented on each of the different buckets for Q3 Q4, but just wondering for the second half how should we think about that and then second banesto probably also a question for the for the capital markets day, but can you comment on Capex, where we stand on the cycle and medium term how do we think about capex.
Especially in the light of all of the special projects or have already have a loss I think it's super interesting projects like the electric et cetera, where do we stand on Capex, how do we see this to yourself. Thank you.
I think the second one.
Antonio So you may remember it many times I said that one important thing for a company to be novel and sustainable is to define it clearly the boundary within reach innovation must happen two to keep on.
Delivering what the company is committing to do in front of everyone. So what I can tell you that what we told you three years ago in the entire world.
We are fully on track with that.
I believe that the best source of innovation and the companies to define the boundary condition and then the people will find a solution. So if you want yes, we as in line. What we said we were going to do with the Capex. So there is no deviation or you will see more detail during the capital market day and that we intend to proceed.
The future, but as of now I can tell you that we are on track with everything we committed to all the shareholder community in all the fronts Capex included yes, and as far as your first question.
I answer on a yearly basis, we expect mix in price probably be additive to the development of the earnings for the year.
Industrial costs and R&D are generally a negative but as I said before because of a lighter second half of the year I expect it to be.
Lower negative than we originally anticipated.
But for the impact of tariffs of course.
SG&A I expect it to be a negative and this is in for a number of reasons, including the fact this year is full of events of launches of <unk> and we keep on working on the infrastructure of the company.
And I think I mentioned at all.
Thank you.
Thank you.
Thank you.
Yes.
Our last question comes from Tom <unk>.
No.
Ian from RBC. Your line is now open.
Tom Narayan RBC. Thanks for taking the questions wanted to just to clarify I think you said that sorry, I missed at Daytona.
Did you say it.
It was 40 in Q2 or 60 then.
Next question was.
It's really a response to Stephen's question I Wonder if this is impacting the stock price right now because I'm getting questions on it as you mentioned something about residual values.
<unk> contemplated in the U S. Maybe you could just put that to bed and so it sounds like that's not what you are saying.
And then third on the guidance and Tony I know you said, you expect mix and age to 25% to be similar to <unk> 24, and this is just a mix comment if I just use <unk> to 'twenty four numbers.
Like it implies 25 number is close to the guidance floor. Just curious how you think of the order of magnitude of what graders vans needs. Thanks.
Antonio can go through this yeah. So first maybe just to take out the point from the table on the stock price. We haven't discussed anything in respect of residual value in the U S.
I don't know what you were referring to additional Nicole.
Okay and then.
If there is any doubt in this respect please ask.
Through the other two questions one Daytona sorry, if I started wrongly but basically in Q2, there were 66 zero and in Q3 that would be approximately 44 zero.
Mix in age to 25 versus <unk> 24.
And I said, rather neutral honestly I don't want to go into the details of <unk>.
Our much greater than compared to okay, let's.
Let's see the sense of I think that for the first question. The second the third of the quite what it was at a zero value for the second one.
Is there anything get corrected me Tom.
My comment when I said that the UK and U S.
Yeah.
That was a.
We said already it was a little bit under pressure, we took some commercial election like to reduce the number of cabinets were putting over there and then I said that in U S. We have some moderate a little bit under pressure for which we took some commercial actions that are showing some risks out. So this is what they were seeing Tom It was an upset in my speech what was said in the first question to Steven.
Yeah.
Okay. So there's nothing to be concerned about for the U S.
We do not we do not have any specific concern about this what I can tell you is that.
We for example, we said in our capital in a few conference calls ago that.
For some model of the hybrid let's say the ageing of the battery was seen as a kind of concern and this is why we put in place.
It kind of warranty scheme in terms of the battery it is having an adoption depending on the state from 'twenty from 15% to 20%. So basically this was a concern that over the time of the battery can get.
Can expire and then we put in place since September last year.
Is it kind of warranty that is having a good attraction just today, we are around 15% to 20% depending on the state while for other usual garen guaranteed yet we are below 10%.
Thank you.
Thank you. Thank you for all the questions. This concludes the Q&A session and I will now turn the conference back to <unk>.
Oh, sorry for closing remarks.
So thank you for your time today and also for all your questions and for three years to get.
More information about you have to be a little bit more give the capital market day, we are really looking forward to see you here.
We're hearing named Maranello for the capital market day, It will be October nine so a few weeks.
So the next appointment will be that one and then I wish you. Good morning. Good afternoon wherever you are on this globe and thanks again for your question for your attention. Thanks from all of the people here in <unk>.
And if you are arrested a good rest.
Thank you.
This concludes today's conference call.
For participating you may now disconnect.
Okay.
[music].
Okay.
[music].
Okay.
Thanks.
Okay.