Pirelli & C. S.p.A.

Pirelli reported first-half 2026 revenue of approximately EUR 3.5 billion, up 2.5% organically. Adjusted EBIT was EUR 558 million, with a 16% margin, and net profit was EUR 299 million, up 13% year over year from EUR 264 million. In Q2, net cash flow before dividends and M&A was positive EUR 148 million. Management said the net financial position was about EUR 1.9 billion/EUR 1.92 billion, gross debt about EUR 3.1 billion, financial assets EUR 1.2 billion, and the cost of debt over the last 12 months was 3.89%. For 2026, Pirelli reaffirmed revenue guidance of EUR 6.75 billion to EUR 6.95 billion, adjusted EBIT margin of about 16%, CapEx of EUR 450 million, net cash generation before dividends and the impact of the call-option exercise of EUR 500 million, and net financial position of EUR 1.2 billion including the call-option impact.

Marco Tronchetti Provera framed the quarter as evidence that Pirelli can keep creating value in an uncertain, geopolitically tense environment. He emphasized leadership in high-value tires, the strength of the brand, technological innovation, and the resilience of the business model despite Middle East disruption, U.S. tariffs, and FX volatility. His tone was confident but cautious, saying the second half remains volatile while reiterating confidence in meeting full-year targets.

Fabio Bocchio focused on the mechanics behind the results and guidance. He said price/mix contributed EUR 50 million in the first half, efficiencies added EUR 81 million, raw materials were a positive EUR 32 million, while FX was negative EUR 44 million, input cost inflation was negative EUR 65 million, and other costs were up EUR 43 million. He also outlined liquidity and balance-sheet strength, including gross debt of about EUR 3.1 billion, financial assets of EUR 1.2 billion, net financial position of about EUR 1.9 billion, a 3.89% cost of debt, and a liquidity margin of about EUR 2.6 billion that covers maturities through Q3 2029. For the full year, he reiterated EUR 150 million of efficiencies, plus an additional EUR 20 million to EUR 30 million mitigation plan tied to Middle East-related inflation, and said the tax rate should be 32% to 34% for the year.

Analysts focused on U.S. market share, China replacement demand, price/mix, Cyber Tyre investment timing, working capital, raw-material headwinds, the U.S. factory plan, and the USMCA/Mexico exposure. Management said U.S. gains were strongest in both OE and replacement, helped by new products and brand expansion, while China replacement share improved on the EV tire replacement cycle. They also said there was no pre-buying, that U.S. demand should improve in H2 based on recent negative market trends and order visibility, and that the proposed U.S. plant would add about 6 million fully high-value tires at a highly automated site without forcing capacity cuts elsewhere. On Cyber Tyre, they said interest is strong across Europe, China, and the U.S., with premium-segment agreements possible and further news expected as early as Q4.