Pirelli posts higher Q2 earnings and sales despite softer volumes

Italian tire giant Pirelli & C. SpA has posted higher second-quarter earnings and sales for the three months ended 30 June, as currency headwinds eased. Second-quarter revenue rose 1.0% year-on-year to €1.76 billion from €1.74 billion a year earlier. Excluding currency, hyperinflation and portfolio effects, organic revenue growth was 1.4%. Adjusted earnings (adjusted EBIT) increased 0.7% to €280.4 million, with the adjusted earnings margin unchanged at 16.0%. Net profit rose 3.9% to €142.2 million. Pirelli reported a 1.5% decline in second-quarter volumes, citing “the diverging performances” of its ‘high value’, large rim-sized tires, and ‘standard’ products. High-value car and motorcycle volumes grew around 3%, supported by market share gains in both OE and replacement channels. Standard volumes fell about 11% as Pirelli continued its “strategy of selectivity” by reducing exposure to less profitable products and sales channels. Price/mix improved 2.9% during the quarter, driven by a better product portfolio and regional mix. Currency movements swung from a 4.5% negative impact in the first quarter to a 0.4% positive contribution in the second quarter following a slower depreciation of the US dollar and stronger Chinese renminbi and Brazilian real. For the first six months, revenue edged down 0.1% to €3.49 billion from €3.50 billion in the prior-year period. Organic revenue, however, grew 2.5%, offset by a 2.1% negative foreign exchange and hyperinflation impact and a 0.5% reduction from the disposal of Dackia AB. First-half adjusted earnings were broadly unchanged at €557.8 million, compared to €558.3 million reported last year, with the margin stable at 16.0%. EBITDA for the first six months increased 3.0% to €794.5 million and adjusted EBITDA rose 2.7% to €814.5 million. Pirelli said ‘high value’ products accounted for 82% of first-half sales, up from 80% a year earlier. Total volumes for the six-month period were flat, as 3.5% growth in ‘high value’ offset an 8% decline in standard products. Pirelli also reported €81 million in efficiency gains during the first half, equivalent to 54% of its full-year target. The tire maker also noted a €50.2 million positive contribution from price/mix and a €31.5 million benefit from raw materials over the six-month period. These, it said, more than offset €64.6 million of input cost inflation linked to the Middle East crisis, €44.4 million of currency headwinds and increased costs associated with US tariffs. Pirelli confirmed its full-year 2026 guidance announced in May.