Martino De Ambroggi

Martino De Ambroggi from Equita inquired about Ferrari's 2026 free cash flow, specifically if CapEx would remain below EUR 1 billion and if net working capital would see positive contributions from down payments. He also asked for expectations on the 'other items' block in the EBIT bridge for 2026, and if Q1 and Q2 performance would be flat year-on-year.

Answer

Antonio Picca Piccon, Ferrari's CFO, stated that CapEx for 2026 would be slightly higher than 2025, and net working capital is expected to be more neutral compared to 2025 due to the significant F80 advances collected that year. He projected the 'other items' in the EBIT bridge to remain positive in 2026, primarily driven by sponsorship and racing revenues. Antonio declined to provide specific Q1/Q2 guidance, reiterating that the second half of 2026 is expected to outperform the first half.

Martino De Ambroggi inquired about the free cash flow outlook for 2026, specifically regarding CapEx and whether net working capital would provide a positive contribution from down payments, and asked for expectations on the 'other items' block in the EBIT bridge for 2026, as well as the anticipated performance for Q1 and Q2 2026.

Answer

CFO Antonio Picca Piccon stated that CapEx is expected to be slightly higher in 2026. Net working capital is projected to be more neutral compared to 2025, which benefited significantly from F80 advances. The 'other items' block in the EBIT bridge is expected to be positive again, primarily driven by sponsorship and racing revenues. He did not provide specific Q1/Q2 guidance but reiterated that the second half of 2026 is expected to be stronger than the first half.

Martino De Ambroggi inquired about the ideal shipment size for Greater China, the progress of the hybrid warranty program, and sought to quantify the financial impact of the U.S. price increases.

Answer

CEO Benedetto Vigna reported that the hybrid warranty program has nearly 550 contracts and is gaining traction. He reiterated the target for Greater China is 8-10% of shipments, noting a new model launching this year will be better suited for the region's tax structure. CFO Antonio Picca Piccon declined to provide specific financial details on the price increase.

Martino De Ambroggi asked for confirmation that personalization drove about a third of the H1 price/mix benefit and questioned if the new e-building's flexibility could enable Ferrari to satisfy demand above the 20% level in the future.

Answer

CFO Antonio Piccon confirmed the one-third estimate for personalization's contribution to the H1 price/mix effect was 'not far away from reality.' CEO Benedetto Vigna stated that while they are improving supply chain agility, particularly for carbon fiber, they are planning based on current data and not yet forecasting a higher rate.

Martino De Ambroggi asked if Stellantis's 2026 industrial free cash flow could be positive if the EUR 2 billion extraordinary cash out is excluded, and inquired about the main components and assumptions for CapEx and working capital.

Answer

CFO João Laranjo stated that 2026 investments are expected to be similar to 2025, and working capital performance will also be similar despite the EUR 2 billion payments, due to higher volumes, inventory efficiency, and tariff credits. He linked the potential for positive free cash flow (excluding extraordinary charges) directly to the improvement in AOI for 2026.

Martino De Ambroghi focused on free cash flow, noting that 2026 would likely be negative, including EUR 2 billion in extraordinary cash out. He asked if free cash flow could be positive if these extraordinary charges were excluded, and requested details on the main components, including CapEx, working capital, and underlying assumptions.

Answer

João Laranjo, Chief Financial Officer, stated that 2026 investments are expected to be similar to 2025, and working capital performance should also be similar despite the EUR 2 billion payments, due to higher volumes, inventory efficiency, and tariff credits. He indicated that the free cash flow outcome in 2026 would be primarily correlated to the improvement in AOI, whose key drivers were provided earlier in the call.