Preliminary Q4 2025 Pirelli and C. S.p.a Earnings Call Transcript
Key Points
- Pirelli & C SpA (PLLIF) achieved an organic revenue growth of 4.2% in 2025, with High Value segment sales accounting for 79% of total revenues.
- The company reported a net income increase of 5.9% year-on-year, reaching EUR531 million, supported by strong operating performance and reduced financial expenses.
- Pirelli & C SpA (PLLIF) completed its deleveraging process, with cash generation before dividends amounting to approximately EUR1.1 billion.
- The company made significant strides in sustainability, reducing CO2 emissions by 63% in factories and water consumption by 54.3% compared to previous years.
- Pirelli & C SpA (PLLIF) enhanced its technological leadership with 320 new homologations, particularly in high-end segments and electric vehicles, strengthening partnerships with premium OEMs.
- The geopolitical uncertainties and high macroeconomic volatility present challenges for Pirelli & C SpA (PLLIF) in 2026.
- The company faces a negative impact from exchange rates and tariffs, amounting to EUR320 million, affecting profitability.
- Standard tire volumes declined by 11% in 2025, with further reductions expected in 2026.
- The company anticipates increased tax pressure in 2026, with an expected tax rate between 32% and 34%.
- Pirelli & C SpA (PLLIF) is dealing with ongoing governance issues related to Sinochem, which could impact its operations and market access.
Ladies and gentlemen, welcome to Pirelli's conference call in which Pirelli top management will present company's full-year 2025 preliminary results. A live webcast of the event and the presentation slides are available in the Investor Relations section of the Pirelli website. I remind you that the Q&A session will follow the presentation.
Now, I would like to introduce Mr. Marco Tronchetti Provera. Please go ahead, sir.
Good evening, ladies and gentlemen. 2025 results mark another milestone in our journey of growth and value creation. In a highly volatile external environment, the group closed the year with outstanding results. We further improve our positioning in high value. Profitability is confirmed as the highest among Tier 1. Cash generation was above expectations, enabling us to accelerate the deleveraging process. At the same time, we strengthened our commitment to sustainability with result that reinforce our leadership.
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