Pirelli & C. (PIRC) Q1 2026 earnings summary

Executive summary

• Q1 2026 results showed resilience and strong execution in High Value segments, with market share gains in both car and motorcycle businesses despite macroeconomic challenges such as FX volatility, inflation, and US tariffs.

• Profitability remained industry-leading, with an Adjusted EBIT margin of 16%, supported by internal efficiency levers and mitigation plans.

• Strategic focus on sustainability reaffirmed by top rankings in the Dow Jones Sustainability Index, S&P Global Sustainability Yearbook, and CDP Climate A List.

• Governance strengthened through Golden Power measures and compliance with US regulations for connected vehicles.

Financial highlights

• Q1 2026 revenues reached €1,737.2 million, with organic growth of 3.5% year-over-year, driven by High Value segment strength (82% of revenues).

• Adjusted EBIT was €277.4 million, margin at 16%, slightly up from 15.9% in Q1 2025.

• Net profit rose 23.3% year-over-year to €157 million, supported by lower financial expenses and higher equity investment results.

• Adjusted EBITDA increased 1.4% year-over-year to €404.4 million (23.3% of revenues).

• Net financial position at end of Q1 was negative €2,017 million, reflecting JV debt consolidation and seasonality.

Outlook and guidance

• 2026 revenue guidance raised to €6.75–6.95 billion, with organic growth of 3.5–5% and adjusted EBIT margin around 16%.

• Volume growth expected between 1% and 2%; price/mix improvement forecasted at 2.5%–3%.

• Net cash generation before dividends and JV impact projected at €400–500 million.

• CapEx confirmed at ~6.5% of revenues, with Q1 CapEx at €86.9 million, focused on High Value, technology, and automation.

• Net financial position forecasted at ~-€1.2 billion, with NFP/Adjusted EBITDA at ~0.75x.