Quarterly

Pirelli, profit up 23%. Targets revised upward

The group recorded a positive net result of EUR 156.8 million. Impact limited by the crisis in the Middle East

by Marigia Mangano

7 May 2026

PIRELLI PNEUMATICO PNEUMATICI COPERTONE COPERTONI GOMMA RUOTA RUOTE CAMFIN NON RINNOVA IL PATTO CON SINOCHEM IN PIRELLI - FOTO ARCHIVIO 7146

3' min read

Translated by AI

Versione italiana

Key points

Growing quarterly
Targets revised upwards
The impact of the crisis in the Middle East

3' min read

Translated by AI

Versione italiana

Pirelli closed the third quarter with a 23.3% increase in net profit and revised upward its year-end targets.

Three-monthly growth

Specifically, the Bicocca-based group posted a profit of EUR 156.8 million in the first three months, up 23.3% from EUR 127.2 million in the first quarter of 2025, thanks in part to lower financial expenses. Revenues came in at EUR1,737.2m, down 1.2% year-on-year from EUR1,758.6m a year earlier, but with organic growth of 3.5% excluding the exchange rate effect (-4.5%) and the deconsolidation of Dackia (-0.2%).

The accounts exceeded the consensus, which indicated a net profit of EUR 130 million and revenues of EUR 1,714 million. "The first-quarter results confirm the resilience of the business despite a particularly challenging scenario," noted CEO Marco Tronchetti Provera during the conference call.

On the profitability front, adjusted ebitda in Q1 2026 was EUR 404.4m (+1.4%) and adjusted ebit was EUR 277.4m (EUR 279.8m in Q1 2025), with the adjusted ebit margin increasing to 16% (from 15.9%). Finally, the net financial position at 31 March 2026 was EUR -2,016.7 million (EUR -2,622.5 million at 31 March 2025 and EUR -1,102 million at 31 December 2025).

Targets upwardly revised

In this context and in light of the results Pirelli has revised its market outlook and financial targets for 2026 in light of the crisis in the Middle East. For the group, the impact "is limited thanks to mitigation actions" already communicated to the market on 16 April, and an exposure limited to 1% of total revenues. In particular,' reads the note on the quarterly results, 'the 2026 targets communicated in February are partially updated to take into account the current scenario. Revenues improved by about €50 million with an estimate of between €6.75 and €6.95 billion, with volumes confirmed to be up between +1%/+2% and price/mix expected to improve between +2.5%/+3% (+2% the February guidance), thanks to the price increases already announced.

The impact of the crisis in the Middle East

"The crisis in the Middle East is weighing on global growth, inflation and commodity prices, resulting in a worsening economic picture compared to last February's assumptions," Pirelli explained in the note. Based on the new scenario, Pirelli has updated its market outlook for 2026, now forecasting Car demand between "-2% and stable", compared to the "-1% and +1%" indicated at the end of February. The revision reflects in particular the worsening of the Standard, which is more exposed to economic trends, while expectations are confirmed for the High Value, which is more resilient and whose growth is expected to be mid-single-digit driven by the Exchange, particularly in Europe. The mitigation plan activated by Pirelli to contain the effects of the crisis in the Middle East envisages a price increase, already announced to the market, starting from the second quarter with tangible effects from the third quarter; further cost containment with respect to the efficiency plan in place; a review of logistics flows and a temporary increase in safety stocks of critical raw materials to ensure production continuity. On the industrial front, the construction of the JV plant in Saudi Arabia is not delayed or impacted to date, also in light of its location on the Red Sea. Moreover, assuming a gradual normalisation of commodity, energy and transport prices in the second half of the year, Pirelli estimates a gross negative impact on adjusted Ebit 2026 of about euro 100 million, of which - thanks to the mitigation actions already in place - about euro 80 million is expected to be offset, with a net impact on adjusted Ebit 2026 therefore estimated at - euro 20 million.