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Pirelli & C. (PIRC) investor relations material

Pirelli & C. Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary31 Jul, 2025

Executive summary

  • Achieved 4.4% organic growth in H1 2025, with revenues of €3.5B and High Value segment rising to 80% of sales, driven by strong commercial performance and internal levers amid a challenging environment.

  • Adjusted EBIT margin improved to 16%, with net profit up 14% to €264M, supported by lower financial expenses and robust cash generation.

  • Sustainability progress includes a 16.5% reduction in absolute emissions, 7.2% reduction in water withdrawal, and recognition by leading ESG indices.

  • Leadership in High Value segment strengthened, with market share gains in ≥18” car tyres and reduced exposure to Standard, especially in South America.

  • Board majority approved results, with dissent related to Sinochem's control cessation declaration.

Financial highlights

  • Net sales reached €3,499M in H1 2025, up 1.5% year-over-year, with 4.4% organic growth; adjusted EBIT was €558M (+3.6% YoY), and adjusted EBITDA €792.9M (+3.2% YoY).

  • Net profit for H1 2025 was €264M (+14.1% YoY); net financial position improved to -€2,678.7M from -€2,978M a year earlier.

  • Net cash flow before dividends in Q2 was €193M, stable year-over-year; H1 2025 net cash flow before dividends improved to -€503.7M.

  • Cost of debt reduced to 4.88% from 5.06% at end-2024.

  • ROIC expected at ~23% for FY 2025.

Outlook and guidance

  • Full-year 2025 revenue forecast at €6.7–6.8B, with organic growth ≥4% and price/mix improvement of 3–3.5%.

  • Adjusted EBIT margin expected at ~16%, with adjusted EBIT around €1,080M; net cash flow before dividends targeted at ~€550M.

  • Deleveraging target: NFP/Adjusted EBITDA at ~1x, NFP at ~-€1.6B.

  • Investments planned at €420M for the year; CapEx for H1 2025 at €128M.

  • Tariff net impact for the year confirmed at €30M after mitigation.

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Frequently asked questions

Pirelli & C. S.p.A. designs, manufactures, and markets tires for cars, motorcycles, and bicycles. The company focuses on high-performance and premium tire segments, supplying products for both original equipment and replacement markets. It operates production facilities and a distribution network globally. The company is headquartered in Milan, Italy, and its shares are listed on the BIT.

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