Pirelli & C. (PIRC) Q1 2025 earnings summary

Executive summary

• Achieved 4.7% organic growth in Q1 2025, outperforming competitors and driven by strong commercial performance and market share gains in ≥18" Replacement across regions.

• High Value segment accounted for 81% of sales, up from 77% in Q1 2024, with significant gains in premium and replacement channels.

• Net income rose 27% year-over-year to €127 million, with adjusted EBIT up 6.5% to €280 million and margin at 15.9%.

• Maintained strong commercial performance, confirmed 2025 targets, and addressed governance issues related to Sinochem and boardroom disagreements.

• Cash flow and net financial position trends aligned with business seasonality; net cash flow before dividends at -€697 million due to inventory build-up for US tariffs.

Financial highlights

• Revenues reached €1.76 billion, up 3.7% year-over-year (4.7% organic growth).

• Adjusted EBIT margin improved to 15.9%, up 40 basis points year-over-year.

• Adjusted EBITDA grew 6.0% to €399 million (22.7% margin).

• Net financial position improved to -€2.62 billion, with a debt reduction of over €312 million since March 2024.

• Net operating cash flow before dividends was -€697 million, reflecting seasonality and US inventory build-up.

Outlook and guidance

• 2025 revenue guidance confirmed at €6.8–7.0 billion, with volume growth of 1–2% and price/mix improvement of 2–3%.

• Adjusted EBIT margin expected around 16%, with net cash generation before dividends of €550–570 million.

• Deleveraged target of net debt/adjusted EBITDA at ~1x, net financial position around -€1.6 billion.

• If current US tariffs persist, mitigation plan ensures targets at the low end of guidance.

• ROIC post taxes for 2025 targeted at ~23%.