Pirelli & C. (PIRC) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 results with revenues of €6.78B, organic growth of 4.2%, and High Value segment now 79% of sales, gaining share in ≥18” car tyres across channels and regions.

• Net profit rose 5.9% to €530.7M, driven by strong operating performance, price/mix, and efficiencies offsetting external headwinds.

• Deleveraging exceeded targets, with net financial position improved to €1.1B and leverage at 0.71x Adjusted EBITDA, supported by strong cash flow and bond conversion.

• Sustainability leadership strengthened, with CO₂ emissions down 63% since 2018, water withdrawal reduced by 54.3% since 2015, and top ESG recognition.

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

Financial highlights

• Adjusted EBIT reached €1,081M, margin improved to 16% from 15.7% in 2024.

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

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

• Net financial position improved to €1.1B, leverage at 0.71x Adjusted EBITDA.

• Cost of debt reduced to 4.40%, down from 5.06% in 2024.

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 planned at €450M (~6.5% of revenues), focused on High Value and automation.

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

• Dividend policy maintained at 50% payout, with an additional extraordinary dividend for 2026.

• Tax rate expected to rise to 32–34% in 2026 due to expiration of Italian incentives.