Pirelli & C. (PIRC) Q3 2024 earnings summary

Executive summary

• Achieved 4.9% organic revenue growth in the first nine months of 2024, with revenues reaching €5,184.5 million, driven by High Value segment expansion and solid commercial performance despite macro and geopolitical headwinds.

• High Value segment volumes grew 7%, now accounting for 76% of sales, outpacing the market and reducing Standard segment exposure.

• Adjusted EBIT reached €815.9 million (+4.3% year-over-year), with a margin of 15.7%, the highest among tier-one players.

• Net profit was €371.1 million, stable year-over-year excluding prior Patent Box benefits, but down from last year due to non-cash forex and hyperinflation impacts.

• Advanced sustainability initiatives, including SBTi-validated Net Zero 2040 target and new emission goals.

Financial highlights

• Net sales for 9M 2024 reached €5,184.5 million, up 0.5% year-over-year (+4.9% organic growth), with High Value sales at 76% of total revenues.

• Adjusted EBIT margin improved to 15.7% for the nine months and 15.9% in Q3.

• Adjusted EBITDA for nine months: €1,157.0 million (+3.7% year-over-year), margin at 22.3%.

• Net financial position at €2,816 million as of September 2024, improved from €3,138 million in 9M 2023.

• CapEx reached €236 million, focused on High Value activities, technology, and sustainability.

Outlook and guidance

• 2024 revenue expected at ~€6.7 billion, with volumes up ~2% and mid-single digit growth in High Value.

• Adjusted EBIT margin confirmed at ~15.5%.

• Net cash generation before dividends forecasted at €500–520 million; net financial position targeted at ~€1.95 billion.

• CapEx guidance at ~€400 million (6% of revenues), supporting technology and sustainability.

• High Value segment expected to remain resilient, with Standard segment demand declining.