Pirelli & C. (PIRC) Q2 2025 earnings summary

Executive summary

• Revenues for H1 2025 reached €3,498.6 million, up 1.5% year-over-year, with organic growth of 4.4% and High Value segment rising to 80% of sales.

• Adjusted EBIT margin improved to 16% in H1 2025 (15.6% in H1 2024); net profit increased 14.1% to €264 million, driven by internal efficiencies and lower financial expenses.

• Strong cash generation and disciplined working capital management supported deleveraging, with net financial position improving to -€2,678.7 million and liquidity margin at €2,430.5 million.

• Sustainability progress includes a 16.5% reduction in absolute emissions, 7.2% reduction in water withdrawal, and top ESG recognitions.

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

Financial highlights

• Net sales reached approximately €3.5 billion in H1 2025, up 1.5% year-over-year, with 4.4% organic growth; adjusted EBIT was €558.3 million (+3.6% YoY), margin at 16%.

• Adjusted EBITDA for H1 2025 was €792.9 million (22.7% margin), up 3.2% year-over-year.

• Net profit for H1 2025 was €264 million (+14.1% YoY); net income margin at 7.5%.

• Net financial position at -€2,678.7 million as of June 30, 2025, improved from -€2,978 million a year earlier.

• CapEx for H1 2025 totaled €128 million, mainly for High Value activities, technology upgrades, and automation.

Outlook and guidance

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

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

• Deleveraging target: NFP/Adjusted EBITDA at ~1x, NFP at ~-€1.6 billion; ROIC post-tax expected at ~23%.

• Tariff net impact for the year confirmed at €30 million after mitigation; FX headwinds revised to -4.5% to -4%.

• Investments planned at €420 million for the year.