Pirelli & C. (PIRC) Q2 2025 earnings summary

Executive summary

• Achieved 4.4% organic growth in H1 2025, with revenues of €3.5B and High Value segment rising to 80% of sales, driven by strong commercial performance and internal levers amid a challenging environment.

• Adjusted EBIT margin improved to 16%, with net profit up 14% to €264M, supported by lower financial expenses and robust cash generation.

• Sustainability progress includes a 16.5% reduction in absolute emissions, 7.2% reduction in water withdrawal, and recognition by leading ESG indices.

• Leadership in High Value segment strengthened, with market share gains in ≥18” car tyres and reduced exposure to Standard, especially in South America.

• Board majority approved results, with dissent related to Sinochem's control cessation declaration.

Financial highlights

• Net sales reached €3,499M in H1 2025, up 1.5% year-over-year, with 4.4% organic growth; adjusted EBIT was €558M (+3.6% YoY), and adjusted EBITDA €792.9M (+3.2% YoY).

• Net profit for H1 2025 was €264M (+14.1% YoY); net financial position improved to -€2,678.7M from -€2,978M a year earlier.

• Net cash flow before dividends in Q2 was €193M, stable year-over-year; H1 2025 net cash flow before dividends improved to -€503.7M.

• Cost of debt reduced to 4.88% from 5.06% at end-2024.

• ROIC expected at ~23% for FY 2025.

Outlook and guidance

• Full-year 2025 revenue forecast at €6.7–6.8B, with organic growth ≥4% and price/mix improvement of 3–3.5%.

• Adjusted EBIT margin expected at ~16%, with adjusted EBIT around €1,080M; net cash flow before dividends targeted at ~€550M.

• Deleveraging target: NFP/Adjusted EBITDA at ~1x, NFP at ~-€1.6B.

• Investments planned at €420M for the year; CapEx for H1 2025 at €128M.

• Tariff net impact for the year confirmed at €30M after mitigation.