Pirelli & C. (PIRC) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered resilient performance with 3.5% organic revenue growth, 16% adjusted EBIT margin, and 23% net profit increase, driven by High Value segment gains and efficiency measures, despite macroeconomic headwinds including FX volatility, inflation, and US tariffs.

• High Value segment accounted for 82% of revenues, with 4% volume growth and market share gains in both Car and Motorcycle segments.

• Profitability remained industry-leading, with an adjusted EBIT margin of 16% (up from 15.9% in Q1 2025), supported by internal efficiency levers and mitigation plans.

• Strategic focus on sustainability reaffirmed by top rankings in S&P Global, Dow Jones, and CDP indices.

• Governance strengthened with Golden Power measures, new board prescriptions, and compliance with US regulations for connected vehicles.

Financial highlights

• Q1 2026 revenues reached €1,737.2 million, with organic growth of 3.5% year-over-year, despite a -1.2% decline in reported net sales due to FX and scope changes.

• Adjusted EBIT was €277.4 million, with a margin of 16%, slightly up from 15.9% in Q1 2025.

• Net profit rose 23.3% year-over-year to €156.8 million, supported by lower financial expenses and higher equity investment results.

• Adjusted EBITDA increased 1.4% year-over-year to €404.4 million (23.3% of revenues).

• Net financial position at end of Q1 was negative €2,016.7 million, reflecting seasonality and consolidation of JV debt.

Outlook and guidance

• 2026 revenue guidance raised to €6.75–6.95 billion, with volume growth of 1–2% and price/mix improvement of 2.5–3%.

• Adjusted EBIT margin expected at ~16%; CapEx at ~€450 million (~6.5% of revenues); net cash generation before dividends and JV impact at ~€500 million.

• Net financial position forecasted at ~-€1.2 billion, with leverage (NFP/EBITDA adj.) at ~0.75x.

• Market outlook revised: Car demand for 2026 expected between -2% and stable, with High Value segment showing mid-single-digit growth.

• Mitigation actions in place to offset Middle East crisis impacts, with net EBIT impact estimated at -€20 million for 2026.