Pirelli & C. (PIRC) Q3 2025 earnings summary

Executive summary

• Achieved organic revenue growth of 3.7% year-over-year for the first nine months of 2025, with High Value products representing 79% of sales, driven by price/mix improvement and innovation despite external challenges.

• Net profit increased by 8% to €400.6 million, with adjusted EBIT margin at 16.1% and strong cash generation in Q3.

• Technological leadership reinforced by Cyber Tyre innovation, industry awards, and new OEM partnerships, including Aston Martin.

• Sustainability initiatives advanced, with progress in emissions reduction, 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

• Net sales reached €5,195.2 million (+0.2% YoY), with organic growth of 3.7% and price/mix improvement of 3.9%.

• Adjusted EBIT rose to €835.5 million (16.1% margin, up from 15.7%), and adjusted EBITDA was €1,185.2 million (22.8% margin).

• Net income increased to €401 million (+8% YoY), with net income margin at 7.7%.

• Net financial position at €-2,537.9 million as of September 2025, improved from €-2,816.2 million a year earlier.

• Q3 cash generation before dividends was €141.2 million; liquidity margin at €2,499.4 million covers debt maturities through Q4 2027.

Outlook and guidance

• 2025 revenue forecast confirmed at €6.7–6.8 billion, with organic growth ≥4% and High Value segment expected to grow mid-single digits.

• Adjusted EBIT margin target at ~16%, CapEx at ~€420 million (~6% of revenues), and net cash flow before dividends at ~€550 million.

• Net financial position targeted at ~€-1.6 billion, with NFP/EBITDA adj. at ~1.0x and ROIC post-tax at ~23%.

• Price/mix expected to improve 3.5–4%, with a negative currency impact of -4%.

• Standard segment demand forecast to decline.