Piaggio (PIA) Q3 2025 earnings summary

Executive summary

• Net sales for the first nine months of 2025 declined 11.3% year-over-year to €1,204.4 million, with declines across all geographic segments due to lower consumer spending, external macroeconomic pressures, and FX headwinds.

• Despite lower revenue, gross margin reached a record 30.4%, up from 29.7% year-over-year, and EBITDA margin was 16.7%.

• Net profit fell 49.1% to €31.7 million, reflecting lower sales, higher operating expenses, and increased depreciation.

• Maintained a strategy of prioritizing value over volume, refusing to engage in price wars despite increased competition from low-cost Asian brands.

• Continued significant investments in factories, products, technology, and sustainability, including robotics, electromobility, and new product launches.

Financial highlights

• Gross margin improved to 30.4% of revenues, a record high, while EBITDA decreased 14.2% to €201 million (margin 16.7%).

• EBIT dropped 34.1% to €85.2 million (margin 7.1%), and net income margin was 2.6%.

• Net financial debt reduced to €528.2 million from €534 million at year-end 2024.

• Free cash flow to equity rose to €36 million, and gross cash stood at ~€417 million.

• Capital expenditure totaled €102.5 million, focused on new engines, electric mobility, and process improvements.

Outlook and guidance

• Guidance for 2025 remains highly dependent on geopolitical and economic stability to support consumer demand.

• Positive cash generation and inventory reduction position the group for improved performance.

• Focus remains on liquidity management, productivity, and flexible investment in brands, R&D, and production hubs.

• CapEx expected around €140–145 million in coming years, focused on new products and process improvements.

• Net debt expected to remain stable by year-end.