Pirelli & C. (PIRC) Q3 2024 earnings summary

Executive summary

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

• High Value segment accounted for 76% of sales, up from 74% in the prior year, and outperformed the market in ≥18" tyres (+7% vs. market +5%).

• Adjusted EBIT reached €815.9 million (+4.3% year-over-year), with a margin of 15.7% for nine months and 15.9% in Q3, the highest among tier-one players.

• Net profit was €371.1 million, stable year-over-year excluding prior Patent Box benefits, but down 9.7% due to non-cash forex impacts.

• Positive cash generation in Q3 and improved net financial position to €2.82 billion, with net cash flow before dividends at -€357 million for nine months.

Financial highlights

• Sales for the first nine months totaled €5.2 billion, with volume growth of 2.2% and price/mix improvement of 2.7%.

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

• Negative foreign exchange impact of -4.4% due to emerging market currency volatility and hyperinflation in Argentina and Turkey.

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

• Liquidity margin at €2.45 billion as of September 2024, covering debt maturities until Q4 2028.

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 flow before dividends forecasted between €500–520 million.

• Net financial position targeted at ~€1.95 billion, with NFP/Adjusted EBITDA at 1.32x–1.26x.

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

• 2025 dividend policy updated to 50% payout ratio.