Q2 2026 Pirelli and C. S.p.a Earnings Call Transcript
Key Points
- Pirelli & C SpA (PRLLY) reported solid first-half 2026 results with revenues of approximately EUR 3.5 billion, organic growth of 2.5%, and an adjusted EBIT margin of 16%, maintaining profitability among the best in the industry.
- The company gained market share in the high-value segment, with volumes growing 3.5%, driven by strong performance in the United States and China replacement channels.
- Net profit rose 13% year-on-year to EUR 299 million, benefiting from lower financial expenses due to debt reduction and a greater contribution from equity participations.
- Pirelli's Cyber Tyre technology demonstrated tangible safety benefits, including a 5-meter reduction in braking distance from 100 km/h, positioning it as a key enabler for connected mobility and autonomous driving.
- The efficiency plan generated EUR 81 million in gross benefits in the first half, achieving 54% of the full-year target, with progress in digitalization and automation reducing development time by 30%.
- The macroeconomic environment remains highly uncertain, with Middle East tensions increasing energy costs (Brent above $90/barrel) and pressuring input costs, leading to a negative raw material impact expected in H2.
- Standard segment volumes declined 8% in the first half, with a steeper 11% drop in Q2, as Pirelli reduced exposure to lower-profitability segments, particularly in South America.
- Foreign exchange volatility negatively impacted revenues by 2.1% in the first half, primarily due to U.S. dollar depreciation, though this improved in Q2.
- U.S. tariffs and the Middle East crisis contributed to higher other costs, including logistics and inventory management, with a EUR 43 million increase in other costs in H1.
- The company revised its full-year market outlook downward, with car tire demand now expected between -3% and -1%, reflecting weaker original equipment demand in China and standard segment weakness.
Ladies and gentlemen, welcome to Pirelli's conference call in which Pirelli's top management will present the company's first half 2026 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 this Q&A session will follow the presentation. Now I would like to introduce Mr. Marco Tronchetti Provera.
Please go ahead, sir.
Thank you. Good evening, ladies and gentlemen. First half results confirm Pirelli's ability to generate value in an uncertain environment marked by growing geopolitical tensions. We have further consolidated our leadership in the high-value segment by leveraging the strength of our brand, technological innovation and a distinctive product portfolio. The resilience of our business model and the implementation of strategic priorities allowed us to maintain profitability among the best in the industry, offsetting the negative effects of tension in the Middle East, U
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