Pirelli & C. (PIRC) Q2 2026 earnings summary

Executive summary

• High Value segment volumes grew 3.5% year-over-year, now accounting for 82% of sales, with market share gains in Car and Motorcycle and improved product mix.

• Profitability remained strong, with a stable 16% adjusted EBIT margin and net profit up 13–13.3% to €299 million, despite geopolitical and macroeconomic headwinds.

• Strategic focus on innovation, efficiency, and sustainability advanced, including ~200 new homologations, Cyber Tyre expansion, and circularity partnerships.

• Efficiency program delivered €81 million in gross savings (54% of annual target), offsetting external cost pressures.

• Sustainability achievements included a 54% reduction in accident frequency, 13.5% cut in Scope 1+2 emissions, and top ESG rankings.

Financial highlights

• Net sales for H1 2026 were €3,494.5 million, stable year-over-year (-0.1%), with 2.5% organic growth driven by price/mix improvements and High Value segment.

• Adjusted EBITDA rose to €814.5 million (23.3% margin), and adjusted EBIT was €557.8 million (16% margin), both stable year-over-year.

• Net profit increased 13–13.3% to €299 million, supported by lower financial expenses and higher equity participation.

• Net financial position at €1,915.9 million, reflecting Xushen Tyre JV consolidation and seasonal cash absorption.

• CapEx for H1 2026 was €177.2 million, focused on High Value and technology upgrades.

Outlook and guidance

• 2026 guidance confirmed: revenues €6.75–6.95 billion, adjusted EBIT margin ~16%, investments ~€450 million.

• Net cash generation before dividends and Xushen Tyre impact expected at ~€500 million; net financial position target ~€-1.2 billion.

• High Value segment expected to strengthen in H2, with further market share gains and resilient demand.

• Market outlook revised: global car tire demand seen between -3% and -1% for 2026, with Standard and OE segments weaker, but High Value replacement resilient.

• Middle East crisis expected to have a limited €20 million impact on adjusted EBIT, largely offset by mitigation actions.