Pirelli & C. (PIRC) Q1 2025 earnings summary

Executive summary

• Achieved 4.7% organic growth in Q1 2025, with net sales up 3.7% to €1.76 billion, driven by strong commercial performance and market share gains in High Value segments.

• Adjusted EBIT margin improved to 15.9% (from 15.5% in Q1 2024), with adjusted EBIT up 6.5% to €280 million and net income up 27% to €127 million.

• High Value segment accounted for 81% of revenues, up from 77% a year earlier, with strong gains in ≥18” Replacement.

• 2025 guidance confirmed despite US tariff and governance uncertainties, supported by mitigation plans and strong liquidity.

• Boardroom split over Sinochem’s control status under IFRS 10; majority approved results, minority dissent on governance grounds.

Financial highlights

• Adjusted EBITDA reached €399 million (22.7% margin), up from €376.3 million (22.2%) in Q1 2024.

• Net financial position improved to -€2.62 billion from -€2.94 billion a year earlier, with liquidity margin at €2.5 billion covering debt maturities through 2028.

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

• CapEx in Q1 2025 was €60 million, mainly for High Value, tech upgrades, and automation.

• Financial expenses reduced to €59.5 million from €110.1 million in Q1 2024.

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.

• NFP/Adjusted EBITDA targeted at ~1x, net financial position ~-€1.6 billion.

• Mitigation plan in place to achieve lower-end guidance if US tariffs persist.

• CapEx for 2025 confirmed at ~€420 million (~6% of revenues).