Pirelli closed on first quarter 2025 within revenues equal to 1.758,6 million euros, up 3,7% compared to the same period in 2024. A organic level, growth was 4,7%, excluding the negative impact of exchange rates and hyperinflation in Argentina and Türkiye (-1%).
THEAdjusted Ebitda rose by 6% to 399 million euros, while theAdjusted EBIT reached 279,8 million, with an increase of 17,2 million compared to the first quarter of 2024. The adjusted Ebit margin stands at 15,9%, up from 15,5% in the previous year, thanks above all to internal efficiency levers.
THENet income è grown up of the 26,7%, reaching 127,2 million euros (100,4 million a year ago). The net financial position, which falls to -2,62 billion euros, compared to -2,93 billion in March 2024 and -1,93 billion at the end of 2024.
Guidance 2025 confirmed but tariffs remain unknown
Pirelli has cConfirmed the objectives announced last FebruaryRevenues are expected between 6,8 and 7,0 billion euros, with volume growth expected between + 1% and + 2% and an improvement in the price/mix between + 2% and + 3%The negative impact of exchange rates will be between -2,5% and -1,5%.
Il adjusted Ebit margin should reach the 16%, having a Cash generation before dividends between 550 and 570 million euros and investments equal to 6% of revenues (~420 million euros). The financial leverage (PFN/Ebitda adjusted) is expected to be around 1x, with PFN at -1,6 billion.
The international trade context remains uncertain, however, particularly for United States, which represent over the 20% of group revenues. Today, about 5% of U.S. demand is served by the plant in Georgia (the most automated of the group), 55% from imports from Mexico, and the remaining 40% from Europe and Brazil.
From 3st May, a 25% duty on imports of Car tyres from Europe and Brazil. No duty is foreseen for the Mexico, being Pirelli "USMCA compliant“For motorcycle and bicycle tires, duties are universal and differentiated by origin.
As a result, the company has updated its mitigation plan: review of trade flows, temporary increase in stocks, new trade policies e a further cost-cutting plan, in addition to the one already underway.
The Governance Knot: The Clash with Sinochem
Behind the good numbers, there is the open conflict between partnersThe quarterly accounts were approved by majority (9 votes out of 15), but six directors – all representing Sinochem, the main Chinese shareholder with a 37% stake – voted againstThe disagreement is not about the numbers, but about the note in the report which indicates the Sinochem's termination of control over Pirelli, in application of the accounting principle IFRS 10.
Dissenting councilors – including Chairman Jiao Jian – dispute this interpretation, arguing that the the shareholders' agreement with Camfin is still in force and that therefore Cnrc/MPI Italy (controlled by Sinochem) still retains control of the company pursuant to theArticle 93 of the TUF.
In the official press release, Pirelli clarifies that the negotiations have concluded “currently without positive outcome” negotiations with controlling shareholder Sinochem for address the issues linked to the development on the US market. The proposals put forward by the Italian management were rejected, while the advisers representing Sinochem would have submitted its own proposal directly to the Golden Power offices, without sharing it with the Bicocca Board of Directors.
Nevertheless, the management says confident: strong in the results achieved and the response from the international market – particularly in the segment Cyber Tire and with the new generation of PZero – Pirelli intends to continue working to ensure the compliance with US regulations and defend its presence in a key market.
Camfin stands by Pirelli: “Sinochem not cooperative”
The governance discount was addressed Camfin, a historic reference shareholder of Pirelli, with a note in which confirms full support for the group's strategies. Camfin openly criticizes Sinochem, calling its attitude “uncooperative and apparently unmotivated”.
The Italian holding company hints that there could also be consequences on the parasocial agreement, if a quick solution is not found: “In the absence of quick solutions, Camfin will evaluate the effects of such behavior on Pirelli and on the shareholders' agreement,” the note reads.
