Pirelli & C SpA
F:2PI
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Pirelli & C SpA
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Pirelli & C SpA
Pirelli is a tire company. It designs, makes, and sells tires for cars, motorcycles, and some specialty vehicles, with a strong focus on premium and high-performance products. Its main customers are carmakers, tire dealers, and drivers who replace tires after the original set wears out. It also sells some motorsport and specialty tires, which help support its brand and technical know-how. The company makes money in two main ways: selling tires to vehicle manufacturers as original equipment, and selling replacement tires through distributors, retail channels, and service shops. Tires are a repeat-purchase product, so the business depends on both new vehicle production and the much larger aftermarket, where drivers buy replacements over time. Pirelli also earns value from product engineering, because tire design matters for safety, handling, comfort, and efficiency. What makes Pirelli different is its position in the higher-end part of the tire market. Instead of competing mainly on low price, it focuses on tires that are engineered for performance, premium cars, and strong brand recognition. That gives it a role as a supplier to automakers and a consumer brand for replacement tires, with manufacturing and distribution built around a product that needs to be replaced regularly.
Pirelli is a tire company. It designs, makes, and sells tires for cars, motorcycles, and some specialty vehicles, with a strong focus on premium and high-performance products. Its main customers are carmakers, tire dealers, and drivers who replace tires after the original set wears out. It also sells some motorsport and specialty tires, which help support its brand and technical know-how.
The company makes money in two main ways: selling tires to vehicle manufacturers as original equipment, and selling replacement tires through distributors, retail channels, and service shops. Tires are a repeat-purchase product, so the business depends on both new vehicle production and the much larger aftermarket, where drivers buy replacements over time. Pirelli also earns value from product engineering, because tire design matters for safety, handling, comfort, and efficiency.
What makes Pirelli different is its position in the higher-end part of the tire market. Instead of competing mainly on low price, it focuses on tires that are engineered for performance, premium cars, and strong brand recognition. That gives it a role as a supplier to automakers and a consumer brand for replacement tires, with manufacturing and distribution built around a product that needs to be replaced regularly.
Results: Pirelli said first-quarter 2026 results were solid despite a difficult backdrop, with revenue of about EUR 1.7 billion, adjusted EBIT of EUR 277 million and an adjusted EBIT margin of 16%.
Mix Shift: The company kept pushing toward high-value tires, which rose to 82% of revenue, and said it gained market share in both car and motorcycle.
Cost Pressure: Management flagged growing pressure from the Middle East crisis, including higher energy, logistics and raw-material costs, and estimated a gross 2026 EBIT hit of about EUR 100 million before mitigation.
Mitigation Plan: Pirelli said it has already launched price increases and cost cuts that should offset about EUR 80 million of the pressure, leaving a net negative impact of about EUR 20 million on adjusted EBITDA.
Outlook Raised: Full-year 2026 revenue guidance was lifted to EUR 6.75 billion to EUR 6.95 billion, while adjusted EBIT margin was reaffirmed at around 16% and net cash generation before dividends was kept at EUR 500 million.
U.S. Push: Management said the U.S. remains a major growth opportunity and confirmed work is underway with leading carmakers on Cyber Tyre, with Georgia becoming an important future capacity project.
