Pirelli & C. (PIRC) Q4 2025 earnings summary

Executive summary

• Achieved strong growth and value creation in 2025, with High Value segment reaching 79% of sales and significant market share gains in ≥18” car tyres across channels and regions.

• Delivered top profitability among Tier 1 peers, with price/mix and efficiencies offsetting external headwinds and net profit up 5.9% to €530.7M.

• Cash generation and deleveraging exceeded targets, supported by strong operating performance and equity-linked bond conversion.

• Recognized as a global ESG leader, meeting all 2025 sustainability targets and ranking in the top 1% of the S&P Global Sustainability Yearbook.

• Board proposes a total dividend of €0.34 per share, including a €0.10 extraordinary dividend, due to strong results and reduced leverage.

Financial highlights

• Revenues reached €6,776M, with 4.2% organic growth year-over-year, and High Value segment now at 79% of sales.

• Adjusted EBIT was €1,081M, margin at 16%, up from 15.7% in 2024.

• Net income rose to €531M, up 5.9% year-over-year.

• Net financial position improved to -€1,102M, with leverage at 0.71x Adjusted EBITDA.

• Free cash flow before dividends was €1,074M, supported by strong operating performance.

Outlook and guidance

• 2026 revenues expected between €6.7–6.9B, with organic growth of 3–4% and Adjusted EBIT margin targeted at ~16%.

• Investments of ~€450M (~6.5% of revenues) mainly in High Value and automation.

• Net cash generation before dividends forecast at ~€500M; net financial position expected at ~-€1.2B, leverage at ~0.75x.

• Dividend policy remains at 50% payout, with a proposed €0.34/share including €0.10 extraordinary for 2026.

• High Value segment expected to outperform market; Standard segment to decline.