Piaggio (PIA) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw a modest increase in global vehicle volumes, with India delivering strong growth and APAC performing as expected, despite persistent geopolitical uncertainty and adverse FX impacts.

• Net sales declined 7.8% year-over-year to €341.7 million, mainly due to currency headwinds, while gross margin improved to 31.6%.

• EBITDA margin reached 16.8%, the second-highest ever, supported by pricing discipline and cost efficiencies.

• Net profit dropped 39.5% to €5.3 million, with EBIT at €19.9 million, down 18.6% year-over-year.

• Cash flow absorption in Q1 2026 was €19 million, a record-low for the season, reflecting improved working capital management.

Financial highlights

• Net sales: €341.7 million, down 7.8% year-over-year, mainly due to adverse forex effects.

• Gross margin: 31.6% (up from 30.5%), with management targeting a 30%-35% range.

• EBITDA: €57.5 million (16.8% margin), down 7.3% year-over-year.

• EBIT: €19.9 million (5.8% margin), down 18.6% year-over-year.

• Net profit: €5.3 million (1.5% margin), down 39.5% year-over-year.

• Net financial debt: €597 million, stable year-over-year, with shareholders’ equity at €404.8 million.

• Capex: €24.2 million, reduced from €39.4 million year-over-year.

Outlook and guidance

• Q2 2026 began with group volumes growing close to 20% year-over-year, with positive contributions from all regions.

• Management expects the positive trend in India to continue, though Q2 is seasonally weaker.

• Strategic focus remains on innovation, competitiveness, safety, sustainability, and social responsibility, with continued investment planned.

• No price increases are planned for 2026; focus remains on cost containment to preserve margins.

• Expected IEEPA tariff refunds of around $3 million in coming quarters.