Piaggio (PIA) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales declined 13.4% year-over-year to €370.7 million, reflecting demand headwinds in Europe, USA, and APAC, with all geographic segments and product types affected.

• Despite lower sales, gross margin improved to 30.5%, one of the best first-quarter margins, and EBITDA margin reached 16.7%.

• Net income fell 53.3% year-over-year to €8.7 million, with EBIT down 41% to €24.4 million.

• Cash flow improved, with seasonal cash burn lower than the previous year, but net financial debt increased to €592.8 million due to working capital absorption and capex.

• Continued investment in brands, R&D, and manufacturing, with a medium/long-term product-driven strategy.

Financial highlights

• Net sales: €370.7 million, down 13.4% year-over-year.

• Gross margin: €113.2 million (30.5% of sales), up 0.1 p.p. year-over-year.

• EBITDA: €62.0 million (16.7% margin), down 17.7% year-over-year.

• Net income: €8.7 million (2.4% of sales), down 53.3% year-over-year.

• Net financial debt: €592.8 million, up from €534 million at 31 Dec 2024.

Outlook and guidance

• 2025 guidance remains closely tied to geopolitical and economic stability, with ongoing focus on productivity, cash management, and investment in brands, R&D, and manufacturing.

• Management maintains flexibility to adjust investments from Q2 onwards in response to market dynamics.

• Capital expenditure will remain conservative and in line with prior year unless market stability improves.