Lamborghini 2025 profit dented by US tariffs and EV U-turn

• Operating margin declined to 24% from 27% in 2024, with deliveries reaching a record 10,747 cars and revenue up 3.3%
• The company cancelled its 2030 EV sports car plans, citing 'resistance to EVs has increased significantly worldwide' and customer experiences not meeting expectations, opting instead for a plug-in hybrid model called Lanzador
• U.S. tariffs impacted both sales and margins, with Lamborghini raising prices but not enough to offset tariff rates, and ruling out further price increases in 2026

Lamborghini 2025 Profit Dented by US Tariffs and EV U-Turn

Key Financial Results:

Italian luxury carmaker Lamborghini reported mixed 2025 results with revenue rising 3.3% to €3.2 billion ($3.7 billion) and record deliveries of 10,747 vehicles. However, operating income declined to €768 million from €835 million in 2024, while operating margins fell from 27% to 24%.

Primary Challenges:

US tariffs significantly impacted Lamborghini's largest market, affecting both sales and margins. The company raised prices but insufficient to offset tariff costs. CEO Stephan Winkelmann stated no further price increases are planned for 2026 as they would not help current market conditions. Additional headwinds included foreign exchange volatility and charges related to canceling its first fully electric vehicle.

Strategic Shift on Electrification:

Lamborghini cancelled plans for a fully electric sports car originally slated for 2030, citing weak demand and concerns over investment returns. Winkelmann noted "resistance to EVs has increased significantly worldwide" in the luxury segment, with customers' EV experiences falling short of expectations. Instead, the company will launch a plug-in hybrid model called Lanzador, a 2+2-seat Grand Tourer, in 2030, complementing its existing all-hybrid three-model lineup. This contrasts with competitor Ferrari, which plans to unveil its first EV in May with EVs comprising 20% of its lineup by 2030.

Market Outlook:

Management cited uncertainty for 2026 forecasting due to the Middle East conflict disrupting oil supply and logistics. The company cushioned pressures through cost control and increased sales of premium vehicles, including the €515,000 Revuelto sports car, with nearly all 2025 deliveries featuring customization options.