Update: Pirelli results rise on higher volumes, efficiency measures

Milan, Italy – Pirelli & C. SpA has exceeded its 2024 targets with both sales and adjusted earnings (adjusted EBIT) coming in slightly above its previous estimates.

Adjusted earnings for the full-year were up 5.9% year-on-year at €1.06 billion, compared to a target of €1.04 billion, Pirelli reported 27 Feb.

Sales for the 12-month period grew 1.9% to €6.77 billion, slightly above the initial €6.7-billion target.

Organically, Pirelli said, sales grew 4.4% but were weighed down by a 2.5% negative impact of foreign currency and hyperinflation in Argentina and Turkey.

Overall volumes grew 1.9% year-on-year, while price/mix registered an increase of 2.5% mainly due to transition from standard to high-value (large-rim-sized and premium tires).

Profitability grew due to the positive contribution of price/mix (€110.0 million) and efficiencies (€143.2 million), said Pirelli.

These more than offset inflation of input costs of €142.5, the €23.7 million higher cost of raw materials, and a €24.6 million negative effect of forex.

Furthermore, the positive €50 million positive effect of volumes limited the impact of greater depreciations and amortisations and other R&D related costs which came in just over €52 million.

For 2025, Pirelli said the global scenario was “evolving continuously”, with growing geopolitical risks linked to potential imposition of tariffs.

The expected trend in global car tire demand, it added, is between -1% and +1%.

In OE, the tire maker said, a “low-single digit” decline is expected because of the weakness in car production in the EU and North America.

In the replacement channel, the group anticipates stability/slight growth.

Overall, the Milan-based tire maker expects to record revenues between €6.8 and €7.0 billion.

The growth will be driven by higher volumes of between 1-2% and price/mix improvement of between 2-3%.

Pirelli expects a negative forex impact of between 2.5 and 1.5% in 2025.

The group also expects to raise adjusted earnings margin to 16% from 15.7% in 2024, helped mainly by a €150-million contribution from ongoing efficiency measures.

The contribution is 11% higher than originally planned by Pirelli in its industrial plan, unveiled March last year.

The tire maker went on stress that the targets did not include the impact of eventual US tariffs, considering the uncertainty around those measures and their timing.