Pirelli & C. (PIRC) Q4 2024 earnings summary

Executive summary

• 2024 results exceeded expectations, with revenues of €6,773.3M (+1.9% YoY), strong High Value segment performance (76% of revenues), and market share gains across regions.

• Profitability reached record levels, with adjusted EBIT of €1,060.5M (15.7% margin), supported by price/mix improvements and efficiency gains.

• Net cash flow before dividends was €534M, above guidance, enabling further deleveraging and a net financial position improvement to -€1,926M.

• Sustainability progress included top ESG ratings, 22% CO2 emissions reduction, 96% renewable electricity use, and SBTi Net Zero 2040 validation.

• Pirelli ranked in the top 1% of S&P Global's 2025 Sustainability Yearbook, the only tire maker to achieve this.

Financial highlights

• Revenues for 2024 were €6,773M (+1.9% YoY), with organic growth of 4.4% and a -2.5% forex impact.

• Adjusted EBIT reached €1,061M (+5.9% YoY), margin at 15.7%, exceeding targets.

• Adjusted EBITDA margin improved to 22.4% (from 21.7%); ROIC at 23.2%.

• Net result was €501M, with Q4 net profit at €130M (+53.1% YoY) due to a favorable tax dispute resolution.

• Net financial position improved to -€1,926M (NFP/Adj. EBITDA at 1.27x); cash generation before dividends was €534M.

Outlook and guidance

• 2025 targets: revenues €6.8–7.0B, volume growth 1–2%, price/mix +2–3%, adjusted EBIT margin ~16%.

• Net cash generation before dividends expected at €550–570M; investments at ~€420M.

• Net financial position targeted at ~-€1.6B, leverage around 1x NFP/Adj. EBITDA.

• Guidance excludes potential US tariffs; contingency plans in place to protect cash generation and deleveraging.

• Sustainability targets reaffirmed, including increased bio-based materials and further water reduction.