Pirelli trims 2025 sales target amid strong first‑half earnings

Milan, Italy – Pirelli & C. SpA has lowered its 2025 revenue forecast to between €6.7 billion and €6.8 billion, from a previous estimate of €6.8-7.0 billion, citing a “worsening” forex outlook.

Revenues for the six months to 30 June totalled €3.50 billion, up 1.5% from €3.45 billion a year earlier, Pirelli reported 31 July.

On an organic basis, excluding currency effects, sales rose 4.4%, as a stronger product and regional mix delivered a 3.9% price/mix gain.

According to Pirelli, high-value, large-size tires accounted for 80% of sales, up from 77% in the first half of 2024.

The first half saw 5% volume growth in the ‘high value’ segment, with a reinforced share in both the replacement channel and OE, supported by partnerships with key car makers in North America and APAC.

There was also “a further reduction of exposure” to standard tires under 17 inches, with volumes down 7% year-on-year.

This was in line with “the strategy of greater selectivity, particularly marked in South America, to focus on more profitable products and channels,” Pirelli said.

Adjusted EBITDA was €792.9 million, up 3.2% from €768.3 million a year earlier.

Adjusted EBIT increased 3.6% to €558.3 million from €539.1 million, lifting the margin to 16% from 15.6%.

The positive price/mix effect (€93.9 million) “more than offset” higher raw-material costs (-€51.3 million) and forex impact (-€18.6 million).

Efficiencies contributed €70 million, offsetting €62 million in input-cost inflation. Volumes contributed €6.2 million.

Pirelli confirmed its May market outlook for a broadly flat global car-tire market (-1% to +1%), with “a more resilient high value segment.”

In the US, which accounts for over 20% of group revenues, around 5% of demand is supplied locally from Georgia.

The remainder is met by imports: 55% from Mexico and 40% from Brazil and Europe.

While US tariff details are still being defined, Pirelli said it is analysing the provisions to assess their application to different product segments.

For the full-year, Pirelli now sees volume growth at about 1%, down from 1-2% previously.

Price/mix is expected to rise 3.0-3.5%, above the earlier 2-3% forecast.

The forex impact is now expected at -4.5% to -4.0%, steeper than the earlier -2.5% to -1.5% estimate.