Piaggio (PIA) Q2 2025 earnings summary

Executive summary

• Net sales declined 13.9% year-over-year to €852.5 million in H1 2025, with decreases across all regions and product types due to demand headwinds and regulatory changes.

• Gross margin improved to 30.4% (up from 29.8%), and EBITDA margin remained strong at 17.3%, among the best in company history.

• Net profit fell 42.2% to €30.1 million, reflecting lower sales, higher depreciation, and challenging market conditions.

• Brand equity and premium positioning were maintained, with continued investment in product development and technology.

• Financial flexibility and liquidity management prioritized amid geopolitical and economic uncertainty.

Financial highlights

• Net revenues: €852.5 million (H1 2025), down 13.9% year-over-year.

• Gross margin: 30.4% (up from 29.8%), EBITDA margin: 17.3% (vs. 17.5%), EBIT: €70.5 million (8.3% margin).

• Net profit: €30.1 million (3.5% of revenues), down from €52.1 million (5.3%).

• Net financial debt: €534.7 million at June 2025, stable versus December 2024.

• Investments in property, plant, and equipment and intangibles: €76.0 million.

Outlook and guidance

• 2025 guidance remains dependent on geopolitical and economic stability, with management focusing on liquidity, productivity, and flexible investment.

• Sequential recovery in European market share expected in Q3 as Euro 5 stocking ends.

• Revenue growth in India anticipated in H2 2025, supported by new product launches.

• No significant logistic cost reductions expected by year-end due to ongoing disruptions.

• Interim dividend reduced to €0.04 per share, totaling €14.1 million.