Pirelli maintains outlook as Q3 sales, earnings grow

Milan, Italy – Pirelli has maintained its full-year 2026 targets after reporting higher third-quarter sales and operating earnings, supported by growth in high-value replacement tires.

Net sales for the three months ended 30 Sept increased 5.1% year-on-year to €1.78 billion, from €1.69 billion a year earlier, the Italian tire maker announced 5 Nov.

On an organic basis, excluding the 2.1% effect of foreign exchange and hyperinflation accounting, sales increased 3%.

Adjusted operating earnings (EBIT) rose 2.1% year-on-year to €283 million from €277.2 million, with the margin reaching 15.9%.

Net profit, however, declined 4% year-on-year to €131.2 million, compared with €136.6 million in the third quarter of 2025.

Pirelli said its performance reflected continued improvements in product, geographical and sales-channel mix, alongside higher selling prices.

The positive price/mix effect reached 4.6% during the quarter, helping offset inflationary pressure on raw-material, energy and transport costs.

High-value replacement tire volumes increased 6% year-on-year in the third quarter, accelerating from 3% growth in the first half.

OE volumes, however, declined 7%, reflecting weak vehicle production in Europe, North America and China.

Pirelli also cited an "unfavourable basis of comparison," following stronger OE demand in North America and Asia Pacific a year earlier.

Standard tire volumes fell 11% during the quarter, in line with the manufacturer's strategy to reduce exposure to "segments with lower margins," particularly in South America.

Overall tire volumes declined 1.6% year-on-year.

For the first nine months of 2026, Pirelli reported a 1.6% increase in sales to €5.28 billion, from €5.19 billion a year earlier.

Organic revenue growth reached 2.7%, while adjusted EBIT was "substantially the same" at €840.8 million from €835.5 million (0.0%), maintaining a margin of 15.9%.

Net profit for the nine months increased 7.4% year-on-year to €430.2 million, compared with €400.6 million in the prior-year period.

High-value products accounted for 82% of total sales, compared with 79% in the first nine months of 2025.

Within the category, high-value car and motorcycle tire volumes increased approximately 3%, supported by a 4% rise in replacement volumes.

OE volumes increased 1% over the nine months, despite the third-quarter decline, while standard tire volumes fell 9%.

Pirelli said its efficiency programme generated €109.4 million in gross benefits during January–September, equivalent to 73% of its full-year target.

The company also implemented further pricing and cost-containment measures in response to the impact of the Middle East conflict on raw-material, energy and transport costs.

Despite the "worsening of the external context", Pirelli confirmed its 2026 targets, including an adjusted EBIT margin of around 16%.