Pirelli & C. (PIRC) Q3 2025 earnings summary

Executive summary

• Achieved 3.7% organic revenue growth in the first nine months of 2025, driven by high-value segment expansion, price/mix improvement, and effective commercial strategy despite external challenges.

• Profitability remains industry-leading, with a 16.1% adjusted EBIT margin and net income up 8% year-over-year, supported by internal efficiencies and cost management.

• Technological leadership reinforced by Cyber Tyre innovation, industry awards, and new partnerships with premium automakers.

• Sustainability initiatives advanced, including reduced emissions, increased use of renewable energy, bio-based materials, and international ESG recognitions.

• Focus on High Value segments, reducing exposure to less profitable Standard products, and launching innovative products.

Financial highlights

• Revenues reached €5,195.2 million (+0.2% YoY), with organic growth of 3.7% and High Value products accounting for 79% of sales, up from 76% a year earlier.

• Adjusted EBIT for nine months was €835.5 million (16.1% margin), up from 15.7% in the prior year.

• Net income rose to €401 million, an 8% increase from €371 million last year.

• Adjusted EBITDA for 9M 2025 was €1,185.2 million (22.8% of sales, +0.5pp YoY).

• Net financial position improved to -€2,537.9 million as of September 2025, reflecting ongoing deleveraging.

• Q3 cash generation before dividends was €141.2 million.

Outlook and guidance

• 2025 revenue forecast confirmed at €6.7–6.8 billion, with organic growth ≥4% and volume growth of approximately 0.5%.

• Adjusted EBIT margin target maintained at ~16%; investments to remain at ~€420 million (~6% of revenues).

• Net cash flow before dividends expected at ~€550 million; net financial position targeted at ~-€1.6 billion.

• High Value segment expected to grow mid-single digits, while Standard segment demand to decline.

• ROIC expected at ~23% for FY 2025.