Pirelli & C. (PIRC) Q4 2024 earnings summary

Executive summary

• 2024 results exceeded expectations, demonstrating resilience and strong High Value segment performance, with market share gains and innovation driving 76% of revenues.

• Profitability reached industry-leading levels, with adjusted EBIT margin at 15.7%, supported by price/mix improvements and efficiency gains.

• Net cash flow before dividends was €534M, enabling further deleveraging and surpassing targets.

• Sustainability progress included top ESG ratings, significant CO2 and water reductions, increased bio-based materials, and improved workplace safety.

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

Financial highlights

• Revenues reached €6,773M, up 1.9% year-over-year, with organic growth at 4.4%.

• Adjusted EBIT was €1,061M (+5.9% YoY), margin at 15.7%; adjusted EBITDA margin improved to 22.4%.

• Net income was €501M, reflecting improved operating performance and lower non-recurring costs.

• Net financial position improved to -€1,926M from -€2,262M, with NFP/Adj. EBITDA at 1.27x.

• Cash generation before dividends was €534M, exceeding the €520M target.

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, with leverage around 1x Net Debt/Adjusted EBITDA.

• Guidance excludes potential US tariffs; contingency plans in place to mitigate impact.

• Sustainability targets reaffirmed, including >70% bio-based/recycled materials in best products and further water reduction.