Pirelli hits 2025 targets as sales exceed €6.7bn

Milan, Italy – Pirelli & C. SpA has met its 2025 targets, reporting stable sales of €6.77 billion and improved profitability despite forex volatility, tariffs and input cost inflation.

Full-year sales were at the “higher end of 2025 target” but remained broadly unchanged compared to the year before, Pirelli said 25 Feb.

On an organic basis, excluding a negative currency impact of 3.8% and the deconsolidation of Dackia distribution arm, sales rose 4.2% year-on-year.

Full-year adjusted earnings (EBITDA) increased 1.9% to €1,548.3 million, with margin improving to 22.8% from 22.4% a year earlier.

Adjusted EBIT rose 2.0% to €1,081.4 million, with margin at 16.0%, in line with guidance and up from 15.7% in 2024.

In the fourth quarter, sales came in at €1.58 billion, down 0.5% year-on-year, but up 6.1% on a constant currency basis.

Adjusted earnings for the quarter reached €363.1 million, while adjusted EBIT was broadly stable at €245.9 million.

Fourth-quarter volumes rose 2.4% year-on-year, with passenger car tire volumes up 2%.

Pirelli said it closed 2025 “with better results compared with the previous year and in line with the targets announced to the market.”

The results were achieved in a “challenging context, characterised by geopolitical and commercial tensions and marked forex volatility,” said the Italian tire maker.

High-value products accounted for 79% of total sales, up from 76% in 2024.

Overall volumes were up 0.4% for the year, reflecting “the opposing dynamics of ‘high value’ and standard” tires.

In the ‘18-inch and higher’ sizes, volumes rose 7%, outperforming the market’s 6% average, with market share gains in both replacement and OE segments .

Pirelli linked the gains mainly to strengthened partnerships with “the main car makers” in North America and Asia-Pacific.

By contrast, demand for 17-inch and lower sizes fell as volumes dropped 11% year-on-year, against a market decline of 1%.

The decline, Pirelli explained, was in line with its strategy to reduce exposure to less profitable products and channels, particularly in South America.

The group said this translated into overall stable car volumes versus slight growth of around 1% in the global market.

Price/mix improved 3.8% for the year, driven by product and regional mix, partly offset by a slightly negative channel mix due to stronger OE growth.

Forex had a negative impact of 3.8% on revenues, reflecting US dollar weakness and volatility in emerging market currencies.

Adjusted EBIT for the full year reflected a positive contribution from volumes (€11.1 million), price/mix (€172.7 million) and efficiencies (€158.0 million).

These, Pirelli said, “more than offset” the negative impact of higher costs of raw materials (€55.9 million), forex (€85.3 million), input cost inflation (€120.5 million), and other costs.

In terms of tariffs, Pirelli said the impact of US import tariffs was €55 million for the fully year, “partially offset by the mitigation actions implemented”.

Looking ahead, the group expects 2026 revenues of between €6.7 billion and €6.9 billion, with an adjusted EBIT margin of around 16%.