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Pirelli & C Interim / Quarterly Report 2025
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Interim / Quarterly Report
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INTERIM FINANCIAL REPORT AT MARCH 31, 2025
PIRELLI & C. Società per Azioni (Joint Stock Company) Milan Office Viale Piero e Alberto Pirelli n. 25 Share Capital Euro 1,904,374,935.66 Milan Company Register No. 00860340157
REA (Economic Administrative Index) No. 1055
PIRELLI & C. S.p.A. - MILAN
TABLE OF CONTENTS
| MACROECONOMIC AND MARKET SCENARIO 6 | |
|---|---|
| SIGNIFICANT EVENTS OF THE QUARTER 10 | |
| GROUP PERFORMANCE AND RESULTS 11 | |
| OUTLOOK FOR 2025 22 | |
| SIGNIFICANT EVENTS SUBSEQUENT TO THE END OF THE QUARTER 24 | |
| ALTERNATIVE PERFORMANCE INDICATORS 27 | |
| OTHER INFORMATION 30 | |
| FINANCIAL STATEMENTS 35 | |
| DECLARATION OF THE MANAGER RESPONSIBLE FOR THE PREPARATION OF THE CORPORATE AND ACCOUNTING DOCUMENTATION PURSUANT TO THE PROVISIONS OF |
ARTICLE 154-BIS, PARAGRAPH 2 OF THE LEGISLATIVE DECREE 58/1998…………………...44
The Board of Directors1
| Chairman | Jiao Jian | |
|---|---|---|
| Executive Vice Chairman | Marco Tronchetti Provera | |
| Chief Executive Officer | Andrea Casaluci | |
| Director | Chen Aihua | |
| Director | Zhang Haitao | |
| Director | Chen Qian | |
| Independent Director | Alberto Bradanini | |
| Independent Director | Michele Carpinelli | |
| Independent Director | Domenico De Sole | |
| Independent Director | Fan Xiaohua | |
| Independent Director | Marisa Pappalardo | |
| Independent Director | Grace Tang | |
| Independent Director | Roberto Diacetti | |
| Independent Director | Paola Boromei | |
| Independent Director | Giovanni Lo Storto | |
| Secretary of the Board | Alberto Bastanzio | |
| Board of Statutory Auditors2 |
| Chairman | Riccardo Foglia Taverna |
|---|---|
| Statutory Auditor | Maura Campra |
| Statutory Auditor | Francesca Meneghel |
| Statutory Auditor | Teresa Naddeo |
| Statutory Auditor | Riccardo Perotta |
| Alternate Auditor | Franca Brusco |
| Alternate Auditor | Roberta Pirola |
| Alternate Auditor | Enrico Holzmiller |
1 Appointment: July 31, 2023. Expiry: Shareholders' Meeting convened for the approval of the Financial Statements at December 31, 2025. 2 Appointment: May 28, 2024. Expiry: Shareholders' Meeting convened for the approval of the Financial Statements at December 31, 2026.
Audit, Risk and Corporate Governance Committee
| Chairman - Independent Director | Fan Xiaohua |
|---|---|
| Independent Director | Giovanni Lo Storto |
| Independent Director | Roberto Diacetti |
| Independent Director | Michele Carpinelli |
| Chen Aihua |
Committee for Related Party Transactions
| Chairman - Independent Director | Marisa Pappalardo |
|---|---|
| Independent Director | Giovanni Lo Storto |
| Independent Director | Michele Carpinelli |
Nominations and Successions Committee
| Chairman | Marco Tronchetti Provera |
|---|---|
| Independent Director | Domenico De Sole |
| Chen Aihua | |
| Zhang Haitao |
Remuneration Committee
| Chairman - Independent Director | Grace Tang |
|---|---|
| Independent Director | Michele Carpinelli |
| Independent Director | Paola Boromei |
| Independent Director | Alberto Bradanini |
| Chen Aihua |
Sustainability Committee
Chairman Marco Tronchetti Provera Jiao Jian Andrea Casaluci Independent Director Domenico De Sole Independent Director Alberto Bradanini Independent Director Roberto Diacetti Chen Qian Zhang Haitao
| Chairman | Marco Tronchetti Provera |
|---|---|
| Jiao Jian | |
| Andrea Casaluci | |
| Independent Director | Giovanni Lo Storto |
| Corporate General Manager3 | Francesco Tanzi |
| Manager responsible for the preparation of the Corporate Financial Documents4 |
Fabio Bocchio |
| Independent Auditing Firm5 | PricewaterhouseCoopers S.p.A. |
The Supervisory Board (as provided for by the Organisational Model 231, adopted by the Company), is chaired by Prof. Carlo Secchi.
3 Appointment: August 3, 2023.
4 Position confirmed by the Board of Directors' Meeting of August 3, 2023.
5Appointment: August 1, 2017, effective from the date of the commencement of trading of Pirelli shares on the stock exchange (October 4, 2017). Expiry: Shareholders' Meeting convened for the approval of the Financial Statements at December 31, 2025.
MACROECONOMIC AND MARKET SCENARIO
Economic Overview
| MACROECONOMIC AND MARKET SCENARIO | ||||||
|---|---|---|---|---|---|---|
| Economic Overview | ||||||
| The global economy grew by +3.0% during the first quarter of 2025, confirming the trend observed for the fourth quarter of 2024, however uncertainties remained over the impact that US tariffs and the resulting trade tensions with Europe and China, could have on the trajectory of economic growth. The global inflation rate stood at 3.4% for the first quarter of 2025, which was an improvement compared to both the same quarter of 2024 (4.5%) and the fourth quarter of 2024 (3.7%). Economic Growth, Year-On-Year Percentage Change in GDP |
||||||
| 1Q 2024 | 2Q 2024 | 3Q 2024 | 4Q 2024 | 1Q 2025 | ||
| EU | 0.6 | 0.8 | 1.1 | 1.4 | 1.4 | |
| US | 2.9 | 3.0 | 2.7 | 2.5 | 2.0 | |
| China | 5.3 | 4.7 | 4.6 | 5.4 | 5.4 | |
| Brazil | 2.2 | 2.8 | 3.5 | 3.3 | 2.2 | |
| World | 2.7 | 2.6 | 2.7 | 3.0 | 3.0 | |
| Consumer Prices, Change in Year-on-Year Percentages | Note: Percentage change compared to the same period of the previous year. Preliminary data for 1Q 2025 for the EU, the US and China; estimates for Brazil and the World. Source: National statistics offices and S&P Global M |
arket Intelligence, April 2025. | ||||
| 1Q 2024 | 2Q 2024 | 3Q 2024 | 4Q 2024 | 1Q 2025 | ||
| EU | 2.8 | 2.6 | 2.4 | 2.5 | 2.7 | |
| US | 3.2 | 3.2 | 2.6 | 2.7 | 2.7 | |
| China | 0.0 | 0.3 | 0.5 | 0.2 | -0.1 | |
| Brazil | 4.3 | 3.9 | 4.4 | 4.8 | 5.0 |
| Economic Growth, Year-On-Year Percentage Change in GDP | |||||
|---|---|---|---|---|---|
| Note: Percentage change compared to the same period of the previous year. Preliminary data for 1Q 2025 for the EU, the US and China; estimates for Brazil and the World. Source: National statistics offices and S&P Global M |
arket Intelligence, April 2025. | ||||
| Consumer Prices, Change in Year-on-Year Percentages 1Q 2024 |
2Q 2024 | 3Q 2024 | 4Q 2024 | 1Q 2025 | |
| EU | 2.8 | 2.6 | 2.4 | 2.5 | 2.7 |
| US | 3.2 | 3.2 | 2.6 | 2.7 | 2.7 |
| China | 0.0 | 0.3 | 0.5 | 0.2 | -0.1 |
| Brazil | 4.3 | 3.9 | 4.4 | 4.8 | 5.0 |
Consumer Prices, Change in Year-on-Year Percentages
In the European Union, GDP growth for the first quarter of 2025 stood at +1.4%, an increase compared to the same quarter of 2024. For the main countries, growth was sustained by Spain (+2.8%), with growth below the European average for France (+0.8%), Italy (+0.6%) and Germany (-0.2 %).
Inflation stood at 2.7%, down slightly compared to the 2.8% recorded for the first quarter of 2024. In light of the gradual reduction in inflation towards the medium-term target of 2%, the European Central Bank eased its monetary policy by reducing the deposit facility rate by 50 basis points in the first quarter, bringing it to 2.5% at the end of March 2025.
In the United States, GDP growth for the first quarter stood at +2.0%, lower than the +2.9% recorded for the same quarter in 2024. This slowdown was attributable to the decline in business and consumer confidence, as well as the deterioration of the trade balance, due to increased imports by companies in anticipation of the introduction of new tariffs. Inflation fell to 2.7% in the first quarter of 2025, (3.2% in the first quarter of 2024). Increased uncertainty stemming from trade tensions and the expectation of rising prices, led the Federal Reserve to keep its benchmark rate unchanged during the first quarter (4.25% - 4.50%), after having reduced it by 100 basis points in 2024.
In China, GDP growth for the first quarter of 2025 equalled +5.4%, which was slightly up compared to +5.3% for the first quarter of 2024. The expansion was supported by fiscal stimulus measures, an acceleration in industrial activity, and an increase in exports in anticipation of US tariff increases on Chinese imports. Weak domestic demand and the crisis in the real estate sector led to a -0.1 % fall in prices during the quarter.
In Brazil, preliminary indicators suggested a slowdown in economic growth during the first quarter of 2025. Manufacturing and services activities remained subdued, penalised by the central bank's monetary policy, which raised interest rates by 200 basis points (to 14.25%) during the first three months of the year. Inflation reached 5.0% in the first quarter, an increase compared to 4.3% for the same period in 2024.
Exchange Rates
In the first quarter of 2025, the euro to US dollar exchange rate averaged 1.05, with an appreciation of +3.2% compared to the same period of the previous year, with some volatility in the quarter. Following a peak of \$US 1.027 per euro in February, the dollar lost momentum reaching \$US 1.082 at the end of March, amid expectations of different prospects for the European economy, which was bolstered by Germany's plan for new investments in infrastructure and defence, compared to those for the United States, which was penalised by the tightening of trade policies by new the administration. 1Q 2024 2Q 2024 3Q 2024 4Q 2024 average 2024 1Q 2025 US\$ per euro 1.09 1.08 1.10 1.07 1.08 1.05 Chinese renminbi per US\$ 7.10 7.11 7.11 7.16 7.12 7.18 Brazilian real per US\$ 4.95 5.22 5.54 5.84 5.39 5.85
Key Exchange Rates
| 1Q 2024 | 2Q 2024 | 3Q 2024 | 4Q 2024 average 2024 | 1Q 2025 | ||
|---|---|---|---|---|---|---|
| US\$ per euro | 1.09 | 1.08 | 1.10 | 1.07 | 1.08 | 1.05 |
| Chinese renminbi per US\$ | 7.10 | 7.11 | 7.11 | 7.16 | 7.12 | 7.18 |
| Brazilian real per US\$ | 4.95 | 5.22 | 5.54 | 5.84 | 5.39 | 5.85 |
Note: Average exchange rates for the period. Source: National central banks.
The imposition of new US tariffs on the imports of goods from China, led to a weakening of the renminbi during the first quarter of the year, which was quoted at 7.18 against the US dollar for the quarter, depreciating by -1% compared to the same period of 2024.
The Brazilian real averaged 5.85 against the US dollar for the first quarter of 2025, depreciating by -15% compared to the same period of 2024 (the real had depreciated by -13% against the euro in the same period). During the course of the quarter, the central bank's interest rate hikes of 200 basis points allowed the real to limit its depreciation against the euro and the US dollar.
Raw Materials Prices
During the first quarter of 2025, geopolitical and climatic factors, as well as supply and demand trends, influenced the prices of the main raw materials.
Raw Materials Prices
| Raw Materials Prices | ||||||
|---|---|---|---|---|---|---|
| 1Q 2024 | 2Q 2024 | 3Q 2024 | 4Q 2024 | average 2024 | 1° trim 2025 | |
| Brent (US\$ / barrel) | 81.8 | 85.0 | 78.4 | 74.0 | 79.8 | 74.9 |
| European natural gas (€ / MWh) | 28 | 32 | 36 | 43 | 35 | 47 |
| Butadiene (€ / tonne) | 812 | 978 | 1,027 | 1,018 | 959 | 1,022 |
| Natural rubber TSR20 (US\$ / tonne) | 1,574 | 1,684 | 1,757 | 1,959 | 1,744 | 1,973 |
For the first quarter 2025, the average price of Brent crude stood at US\$ 74.9 per barrel, a fall of -8% compared to US\$ 81.8 per barrel for the same quarter in 2024. Brent crude recorded a progressive weakening from US\$ 78 per barrel in January - a price level supported by the prolonged tensions in the Middle East - to US\$ 71 in March, due to expectations of a weakening in global demand linked to the growing risks of a tariff trade war.
Natural gas prices in Europe averaged euro 47 per MWh for the first quarter 2025, a rise of +70% compared to euro 28 for the same period of 2024. European natural gas prices were sustained by higher demand during the winter, as well as by the non-renewal of the gas transit agreement between Ukraine and Russia at the end of 2024.
The price of butadiene, the main raw material for the production of synthetic rubber, increased by +26% during the first quarter of 2025 to euro 1,022 per tonne, (stable compared to the fourth quarter of 2024), indirectly sustained by an increase in prices in Asia, and by the growing demand for synthetic rubber from tyre manufacturers in the run-up to the introduction of US tariffs.
The average price of natural rubber recorded an increase of +25% to US\$ 1,973 per tonne for the first quarter of 2025 (US\$ 1,574 per tonne for the same quarter of 2024). The price remained stable for the first quarter of 2025, compared to the fourth quarter of 2024, due to the sustained shortage of global supply in the rubber producing areas.
Trends in Car Tyre Markets
- +0.4% for the Original Equipment channel, thanks to a recovery in volumes in Asia, which offset the fall in demand in Europe and North America;
- +1.9% for the Replacement channel, which was instead sustained by a recovery in demand in Europe and North America.
| During the first quarter of 2025, the car tyre market recorded a global level growth in volumes of +1.4%, compared to the same period of 2024. Volume performance per channel differed: +0.4% for the Original Equipment channel, thanks to a recovery in volumes in Asia, which offset the fall in demand in Europe and North America; +1.9% for the Replacement channel, which was instead sustained by a recovery in demand in Europe and North America. Demand was stronger for Car ≥18", which recorded growth of +4.4% compared to the first quarter of |
||||||
|---|---|---|---|---|---|---|
| 2024, driven by the Replacement channel (+1.1% for Original Equipment, +6.7% for Replacement). | ||||||
| Market demand for Car ≤17" remained essentially stable for the first quarter of 2025, increasing by +0.5% compared to the same period of 2024 (+0.0% for Original Equipment, +0.7% for Replacement). Trends in Car Tyre Markets |
||||||
| % change year-on-year | 1Q 2024 | 2Q 2024 | 3Q 2024 | 4Q 2024 | 2024 | 1Q 2025 |
| Total Car Tyre Market | ||||||
| Total | 2.1 | 1.1 | 0.2 | 0.6 | 1.0 | 1.4 |
| Original Equipment | 1.2 | 0.5 | -3.4 | -0.9 | -0.7 | 0.4 |
| Replacement | 2.5 | 1.3 | 1.4 | 1.2 | 1.6 | 1.9 |
| Market ≥ 18" | ||||||
| Total | 6.5 | 5.6 | 2.8 | 1.4 | 4.1 | 4.4 |
| Original Equipment | 1.5 | 3.2 | -0.4 | -1.7 | 0.7 | 1.1 |
| Replacement | 10.1 | 7.5 | 5.0 | 3.4 | 6.4 | 6.7 |
| Market ≤ 17" | ||||||
| Total | 0.8 | -0.2 | -0.6 | 0.4 | 0.1 | 0.5 |
| Original Equipment | 1.1 | -0.9 | -4.9 | -0.5 | -1.3 | 0.0 |
| 0.7 | -0.0 | 0.7 | 0.7 | 0.5 | 0.7 | |
| Replacement |
Trends in Car Tyre Markets
SIGNIFICANT EVENTS OF THE QUARTER
On February 7, 2025, Pirelli announced that it had been confirmed - for the seventh consecutive year - among the global leaders in the fight against climate change, securing a place on the 2024 Climate A list of the CDP, the international non-profit organisation that has collected and analysed the environmental information of more than 24,800 companies. An "A" rating in the Climate section, is the highest score attainable and was awarded to Pirelli based on its decarbonisation strategy, the effectiveness of the efforts implemented to reduce emissions and climate risks and the development of a low carbon emissions economy, as well as on the completeness and transparency of the information provided, and the adoption of best practices associated with environmental impacts.
On February 11, 2025, Pirelli announced that it had been ranked among the "Top 1%" of companies in the 2025 Sustainability Yearbook - the only global tyre manufacturer - thus obtaining the highest possible recognition, following the sustainability assessment carried out by S&P Global on approximately 7,700 companies. This result followed the score achieved by Pirelli in S&P Global's Corporate Sustainability Assessment for 2024, where the Company obtained the top score (84 points) in both the Auto Components and Automotive sectors, confirming its inclusion in the Dow Jones Sustainability World and Europe Indices.
GROUP PERFORMANCE AND RESULTS
In this document, in addition to the financial measures provided for by the International Financial Reporting Standards (IFRS), alternative performance indicators derived from the IFRS were used, to allow for a better assessment of the Group's operating and financial performance.
Reference should be made to the section "Alternative Performance Indicators" for a more analytical description of these indicators.
* * *
Pirelli's results for the first quarter of 2025 confirm the effectiveness of the business model, and reflect the implementation of the key programmes of the Industrial Plan.
On the Commercial front:
- the strengthened positioning of Car High Value. During the first quarter of 2025, Pirelli recorded volume growth of +5% for Car ≥18", which was higher than that of the market (+4%). This performance was driven by the gain in market share in the Replacement channel, (+8% for Pirelli, +7% for the market) in the main geographic regions. For the Original Equipment channel, where Pirelli continued to focus on higher rim diameters, volume growth (+1%) was consistent with that of the market (+1%) and ≥19" volumes accounted for approximately 86% of ≥18" volumes, which grew by +1 percentage point compared to the first quarter of 2024);
- exposure to Standard was further reduced (-7% for Pirelli Car ≤17" volumes, compared to +1% for the market), consistent with the Group's strategy of greater selectivity, which was further accelerated in South America, where Pirelli has revised its distribution policy by focusing on the more profitable products and channels.
For Pirelli, the overall performance translated into a +1% growth in Car volumes, consistent with that of the market).
On the Innovation front:
- during the first quarter of 2025, the offering in tyres was strengthened with the launch of two Car products (the Cinturato C3 - a summer tyre dedicated to the European market - and the Scorpion XTM All Terrain for North America), and two Motorbike products (the Diablo Supercruiser and the Scorpion MX32 Mid Soft, available in all regions). Pirelli's technological leadership was confirmed by the results of comparative tests carried out by some of the leading specialised magazines. The products for Car (the Cinturato C3 and the Cinturato All Season SF3), and for Motorbikes (the Diablo Supercorsa V4 SP), were ranked at the top of their respective categories;
- the strategic partnership with Bosch GmbH continued for the development of new software-based solutions and new driving functionalities, thanks to Pirelli's sensors installed in the tyres and its proprietary software. Lastly, the collaboration with Movyon, a company of the Autostrade per l'Italia group, for the monitoring of road surfaces, also continued.
In the Operations Programme:
- gross efficiencies of euro 25.0 million were achieved, consistent with expectations and the project development timelines;
- the saturation level of manufacturing plants stood at approximately 91%;
- the programme to decarbonise the manufacturing plants through the increased use of renewable energy sources and programmes to improve energy efficiency, continued.
On the Sustainability front, following the positive performance in 2024 activities also continued during the first quarter of 2025, to support the achievement of the Plan's objectives in the areas of People, Climate, Product and Nature.
In February 2025, in continuity with the leadership positioning of the previous year, Pirelli also received the following international recognitions:
- it was reconfirmed in the "Top 1%" in S&P Global's 2025 Sustainability Yearbook, the only tyre manufacturer to achieve the highest recognition at global level;
- it was reconfirmed to be among the global leaders in the fight against climate change, being included again in the CDP's Climate A list;
- its "Platinum" rating was reconfirmed in the Ecovadis assessment.
Pirelli's results for the first quarter of 2025 were characterised by:
- Net sales of euro 1,758.6 million, an increase of +3.7% compared to the first quarter of 2024, supported by a solid commercial performance (+4.7%), with volume growth of +0.8% and with the price/mix improving by +3.9%. The impact of the exchange rate effect was instead negative (-1.0%);
- EBIT adjusted which amounted to euro 279.8 million, an increase of +6.5%, compared to the first quarter of 2024, with profitability at 15.9% improving by +0.4 percentage points compared to the first quarter of 2024, thanks to the effectiveness of internal levers (price/mix and efficiencies);
- net income/loss which amounted to an income of euro 127.2 million, an increase of +26.7%, compared to the first quarter of 2024, thanks to a solid operating performance and lower financial expenses;
- Net Financial Position which at March 31, 2025 showed a debt of euro 2,622.5 million (a debt of euro 1,925.8 million at December 31, 2024, and a debt of euro 2,935.1 million at March 31, 2024), with a cash absorption before dividends of euro 696.7 million;
- a liquidity margin of euro 2,501.7 million, which covers debt maturities until the fourth quarter of 2028.
| The Group's Consolidated Financial Statements can be summarised as follows: | ||
|---|---|---|
| (in millions of euro) | 1 Q 2025 | 1 Q 2024 |
| Net sales | 1,758.6 | 1,695.5 |
| EBITDA adjusted (°) | 399.0 | 376.3 |
| % of net sales | 22.7% | 22.2% |
| EBITDA | 387.5 | 368.6 |
| % of net sales | 22.0% | 21.7% |
| EBIT adjusted | 279.8 | 262.6 |
| % of net sales | 15.9% | 15.5% |
| Adjustments: - amortisation of intangible assets included in PPA | (28.4) | (28.4) |
| - one-off, non-recurring and restructuring expenses | (11.5) | (7.7) |
| EBIT | 239.9 | 226.5 |
| % of net sales | 13.6% | 13.4% |
| Net income/(loss) from equity investments | 5.8 | 6.0 |
| Financial income/(expenses) | (59.5) | (110.1) |
| Net income/(loss) before taxes | 186.2 | 122.4 |
| Taxes | (59.0) | (22.0) |
| Tax rate % | 31.7% | 18.0% |
| Net income/(loss) | 127.2 | 100.4 |
| 118.8 | 93.7 | |
| Net income/(loss) attributable to owners of the Parent Company | 0.12 | 0.09 |
| Earnings/(loss) per share (in euro per basic share) |
| (in millions of euro) 03/31/2025 12/31/2024 Fixed assets 8,723.1 8,771.6 Inventories 1,503.3 1,467.7 Trade receivables 1,001.2 622.9 Trade payables (1,606.4) (2,081.6) Operating net working capital 898.1 9.0 % of net sales () 13.1% 0.1% Other receivables/other payables (8.4) 42.2 Net working capital 889.7 51.2 % of net sales () 13.0% 0.8% Net invested capital 9,612.8 8,822.8 Equity 6,013.1 5,912.3 Provisions 977.2 984.7 Net financial (liquidity)/debt position 2,622.5 1,925.8 Equity attributable to owners of the Parent Company 5,842.4 5,756.1 Investments in intangible and owned tangible assets (CapEx) 60.0 414.9 |
|---|
| 03/31/2024 8,826.3 1,420.3 939.8 (1,460.5) 899.6 13.5% 83.3 982.9 14.8% 9,809.2 5,868.7 1,005.4 2,935.1 5,734.5 53.4 |
| Increases in right of use 28.3 118.8 15.3 |
| Research and development expenses 75.1 289.5 70.3 |
| % of net sales 4.3% 4.3% 4.1% |
| Research and development expenses - High Value 71.9 272.8 65.6 |
| % of High Value sales 5.1% 5.3% 5.0% |
| Employees (headcount at end of period) 31,188 31,219 31,391 |
| Tyre production sites (number) 18 18 18 |
| (*) During interim periods net sales refer to the last twelve months. |
| (*) During interim periods net sales refer to the last twelve months. | ||
|---|---|---|
| Net sales amounted to euro 1,758.6 million, an increase of +3.7% compared to the first quarter of | ||
| 2024, +4.7% excluding the combined impact of the exchange rate effect and the adoption of | ||
| hyperinflation accounting (totalling -1%). | ||
| High Value sales accounted for 81% of total Group revenues (77% for the first quarter of 2024). | ||
| The following table shows the changes in net sales performance, compared to the same period of | ||
| the previous year: | ||
| 2025 | ||
| 1Q | ||
| Volume | 0.8% | |
| Price/mix | 3.9% | |
| Change on a like-for-like basis | 4.7% | |
| Exchange rate effect /Hyperinflation accounting in Argentina and Turkey | -1.0% |
Price/mix growth (+3.9%) was driven by the continued improvement in the product mix and by the positive regional mix, while the channel mix remained essentially flat. The price component was marginally positive, due to the application of indexation clauses to the cost of raw materials for the Original Equipment channel.
| The impact of the exchange rate effect and hyperinflation in Argentina and Turkey (-1.0%) was negative, affected by the volatility of the currencies of emerging countries against the euro, which was only partially mitigated by the appreciation of the US dollar. |
||||
|---|---|---|---|---|
| The performance for net sales according to geographical region was as follows: | 1 Q 2025 | 1 Q 2024 | ||
| (in millions of euro) | % | % | ||
| Europe | 718.7 | 40.9% | 40.2% | |
| North America | 469.2 | 26.7% | 25.4% | |
| APAC | 285.8 | 16.2% | 16.1% | |
| South America | 169.8 | 9.7% | 10.9% | |
| Russia and MEAI | 115.1 | 6.5% | 7.4% |
EBITDA adjusted amounted to euro 399.0 million (euro 376.3 million for the first quarter of 2024), with a margin of 22.7% (22.2% for the first quarter of 2024), which reflected the dynamics described in the following paragraph in terms of the EBIT adjusted.
EBIT adjusted for the first quarter of 2025 amounted to euro 279.8 million (euro 262.6 million for the first quarter of 2024), with an EBIT margin adjusted of 15.9%, an improvement compared to 15.5% for the first quarter of 2024, thanks to the contribution of internal levers.
More specifically, the growth in the EBIT adjusted reflected:
- the positive contribution of the price/mix (euro +42.3 million) and of efficiencies (euro +25.0 million), which more than offset the increase in the cost of raw materials (euro -22.2 million), and inflation in the cost of production factors (euro -24.5 million);
- the slightly positive impact of the exchange rate effect (euro +4.4 million), mainly due to the negative effect of the depreciation of the currencies of emerging countries, which was more than offset by the positive impact of the appreciation of the US dollar, and the depreciation of the Mexican peso which is a relevant currency in terms of the cost base, in that Mexico is main a productive source for Pirelli;
- the positive contribution of volumes (euro +5.7 million), which limited the impact of higher depreciation and amortisation (euro -8.3 million), and the increase in other costs (euro -5.2 million), which were mainly related to Marketing, Research and Development.
| (in millions of euro) | 1 Q | |
|---|---|---|
| 2024 EBIT adjusted | 262.6 | |
| - Internal levers: | ||
| Volumes | 5.7 | |
| Price/mix | 42.3 | |
| Amortisation and depreciation | (8.3) | |
| Efficiencies | 25.0 | |
| Other | (5.2) | |
| - External levers: | ||
| Cost of production factors (commodities) | (22.2) | |
| Cost of production factors (labour/energy/other) | (24.5) | |
| Total exchange rate effect * | 4.4 | |
| Total change | 17.2 | |
| 2025 EBIT adjusted | 279.8 |
EBIT for the first quarter of 2025 amounted to euro 239.9 million (an increase of euro 13.4 million, compared to euro 226.5 million for the first quarter of 2024), and included the amortisation of intangible assets identified in the PPA to the amount of euro 28.4 million, consistent with the first quarter of 2024, and one-off, non-recurring and restructuring expenses to the amount of euro 11.5 million.
Net income/(loss) from equity investments amounted to an income of euro 5.8 million, (positive to the amount of euro 6.0 million for the first quarter of 2024), and mainly refers to the pro-rata result of the investment in the joint venture Xushen Tyre (Shanghai) Co., Ltd., which was positive to the amount of euro 5.5 million (positive to the amount of euro 5.3 million for the first quarter of 2024).
Net financial expenses for the first quarter of 2025 amounted to euro 59.5 million, a decisive improvement compared to euro 110.1 million for the first quarter of 2024. This figure included the negative impact of the phenomena of currency depreciation and hyperinflation, with no impact on cash generation amounting to euro 46 million, compared to the negative impact of euro 6 million in the first quarter of 2025.
At March 31, 2025, the cost of debt, calculated as the average cost of debt for the last twelve months, stood at 4.96%, a reduction compared to 5.06% at December 31, 2024. This decrease was due to a fall in interest rates in the Eurozone, in conjunction with the optimisation of the local debt mix, which saw a lesser exposure to the weight of high-yield currencies.
Taxes for the first quarter of 2025 amounted to euro 59.0 million. The figure for the first quarter of 2024 of euro 22.0 million, included the benefits of the Patent Box and the impact of the successful resolution of tax disputes.
Net income/(loss) amounted to an income of euro 127.2 million, compared to an income of euro 100.4 million for the first quarter of 2024.
| Net income/(loss) adjusted amounted to an income of euro 155.6 million, (euro 126.2 million for the first quarter of 2024). The following table shows the calculations: |
||
|---|---|---|
| (in millions of euro) | 1 Q | |
| 2025 | 2024 | |
| Net income/(loss) | 127.2 | 100.4 |
| Amortisation of intangible assets included in PPA One-off, non-recurring and restructuring expenses |
28.4 11.5 |
28.4 7.7 |
| Taxes | (11.5) | (10.3) |
| Net income/(loss) attributable to the owners of the Parent Company amounted to an income of euro 118.8 million, compared to an income of euro 93.7 million for the first quarter of 2024. |
|||
|---|---|---|---|
| Equity went from euro 5,912.3 million at December 31, 2024 to euro 6,013.1 million at March 31, 2025. |
|||
| Equity attributable to the owners of the Parent Company at March 31, 2025 equalled euro | |||
| 5,842.4 million, compared to euro 5,756.1 million at December 31, 2024. | |||
| This change is shown in the table below: | |||
| (in millions of euro) | Group | Non-controlling | Total |
| Equity at 12/31/2024 | 5,756.1 | interests 156.2 |
5,912.3 |
| Translation differences | (67.4) | 5.0 | (62.4) |
| Net income/(loss) | 118.8 | 8.4 | 127.2 |
| Fair value adjustment of financial assets / derivative instruments | 12.6 | - | 12.6 |
| Actuarial gains/(losses) on employee benefits | (0.4) | - | (0.4) |
| Effect of hyperinflation in Turkey | 4.4 | - | 4.4 |
| Effect of hyperinflation in Argentina | 19.6 | - | 19.6 |
| Other | (1.3) | 1.1 | (0.2) |
| Total changes | 86.3 | 14.5 | 100.8 |
| Net financial position showed a debt of euro 2,622.5 million, compared to a debt of euro 1,925.8 | |||||||
|---|---|---|---|---|---|---|---|
| million at December 31, 2024. It was composed as follows: | |||||||
| (in millions of euro) | 03/31/2025 | 12/31/2024 | |||||
| Current borrowings from banks and other financial institutions | 1,059.8 | 760.9 | |||||
| - of which lease liabilities | 107.4 | 105.2 | |||||
| Current derivative financial instruments (liabilities) | 31.8 | 3.5 | |||||
| Non-current borrowings from banks and other financial institutions | 2,765.7 | 3,068.6 | |||||
| - of which lease liabilities | 376.2 | 380.5 | |||||
| Non-current derivative financial instruments (liabilities) | - | - | |||||
| Total gross debt | 3,857.3 | 3,833.0 | |||||
| Cash and cash equivalents | (878.5) | (1,502.7) | |||||
| Other financial assets at fair value through Income Statement | (123.2) | (166.0) | |||||
| Current financial receivables ** | (103.8) | (113.3) | |||||
| Current derivative financial instruments (assets) | (21.4) | (16.6) | |||||
| Net financial debt * | 2,730.4 | 2,034.4 | |||||
| Non-current derivative financial instruments (assets) Non-current financial receivables ** |
- (107.9) |
(4.3) (104.3) |
|||||
| Total net financial (liquidity) / debt position | 2,622.5 | 1,925.8 | |||||
| * Pursuant to CONSOB Notice dated July 28, 2006 and in compliance with the ESMA guidelines regarding disclosure requirements pursuant | |||||||
| to the Prospectus Regulation applicable from May 5, 2021. | |||||||
| ** The item "financial receivables 2025 (euro 8.4 million at December 31, 2024). |
" is reported net of the relative provisions for impairment which amounted to euro 8.7 million at March 31, | ||||||
| The structure of gross debt which amounted to euro 3,857.3 million, was as follows: | |||||||
| (in millions of euro) | 03/31/2025 | within 1 year | Maturity date | between 1 and 2 between 2 and 3 between 3 and 4 between 4 and 5 more than 5 years | |||
| Club Deal EUR 600m ESG 2024 4.5y Club Deal EUR 1.6bn ESG 2022 5y |
598.1 598.9 |
- - |
- 598.9 |
- - |
598.1 - |
- - |
- - |
| Bond SLB EUR 600m 4.25% due 01/28 Bond SLB EUR 600m 3.875% due 07/29 |
596.3 594.1 |
- - |
- - |
596.3 - |
- - |
- 594.1 |
- - |
| Convertible bond | 492.6 299.8 |
492.6 299.8 |
- - |
- - |
- - |
- - |
- - |
| 111.5 | 111.5 | - | - | - | - | - | |
| Bilateral EUR 300m ESG 2023 2.5y facility Bank debt held by subsidiaries |
80.3 | 1.5 | 0.6 | - | - | - | |
| Other financial debt Lease liabilities |
82.4 483.6 |
107.4 | 88.9 | 74.0 | 55.9 | 38.0 | 119.4 |
| The structure of gross debt which amounted to euro 3,857.3 million, was as follows: | |
|---|---|
| ------------------------------------------------------------------------------------- | -- |
| * Pursuant to CONSOB Notice dated July 28, 2006 and in compliance with the ESMA guidelines regarding disclosure requirements pursuant to the Prospectus Regulation applicable from May 5, 2021. ** The item "financial receivables |
" is reported net of the relative provisions for impairment which amounted to euro 8.7 million at March 31, | ||||||
|---|---|---|---|---|---|---|---|
| 2025 (euro 8.4 million at December 31, 2024). The structure of gross debt which amounted to euro 3,857.3 million, was as follows: |
|||||||
| (in millions of euro) | 03/31/2025 | Maturity date | |||||
| Club Deal EUR 600m ESG 2024 4.5y | 598.1 | within 1 year - |
- | between 1 and 2 between 2 and 3 between 3 and 4 between 4 and 5 more than 5 years - |
598.1 | - | - |
| Club Deal EUR 1.6bn ESG 2022 5y | 598.9 | - | 598.9 | - | - | - | - |
| Bond SLB EUR 600m 4.25% due 01/28 | 596.3 | - | - | 596.3 | - | - | - |
| Bond SLB EUR 600m 3.875% due 07/29 | 594.1 | - | - | - | - | 594.1 | - |
| Convertible bond | 492.6 | 492.6 | - | - | - | - | - |
| Bilateral EUR 300m ESG 2023 2.5y facility | 299.8 | 299.8 | - | - | - | - | - |
| Bank debt held by subsidiaries | 111.5 | 111.5 | - | - | - | - | - |
| Other financial debt | 82.4 | 80.3 | 1.5 | 0.6 | - | - | - |
| Lease liabilities Total gross debt |
483.6 3,857.3 |
107.4 1,091.6 |
88.9 689.3 |
74.0 670.9 |
55.9 654.0 |
38.0 632.1 |
119.4 119.4 |
At March 31, 2025, the Group had a liquidity margin of euro 2,501.7 million consisting of euro 1,500.0 million in unutilised committed credit facilities, euro 878.5 million in cash and cash equivalents, and euro 123.2 million in financial assets at fair value through the Income Statement. The liquidity margin guarantees coverage for maturities for borrowings from banks and other financial institutions, until the fourth quarter of 2028.
Net cash flow for the year, in terms of change in the net financial position, can be summarised as follows:
| (in millions of euro) | 1 Q | |
|---|---|---|
| 2025 | 2024 | |
| EBIT adjusted | 279.8 | 262.6 |
| Amortisation and depreciation (excluding PPA amortisation) | 119.2 | 113.7 |
| Investments in intangible and owned tangible assets (CapEx) | (60.0) | (53.4) |
| Increases in right of use | (28.3) | (15.3) |
| Change in working capital and other | (865.7) | (845.8) |
| Operating net cash flow | (555.0) | (538.2) |
| Financial income / (expenses) paid | (49.1) | (63.2) |
| Taxes paid | (31.6) | (24.7) |
| Cash-out for one-off, non-recurring and restructuring expenses | (12.6) | (20.4) |
| Dividends paid to minority shareholders | - | (1.3) |
| Differences from foreign currency translation and other | (29.8) | (2.6) |
| Net cash flow before dividends, extraordinary transactions and investments |
(678.1) | (650.4) |
| Hevea-Tec acquisition | - | (23.0) |
| Capital subscription Middle East and North Africa Tyre Company | (12.8) | - |
| Other extraordinary transactions | (5.8) | - |
| Net cash flow before dividends paid by the Parent Company | (696.7) | (673.4) |
| Dividends paid by the Parent Company | - | - |
| Net cash flow | (696.7) | (673.4) |
Operating net cash flow for the first quarter of 2025 was negative to the amount of euro 555.0 million, (euro 538.2 million for the first quarter of 2024), and reflected:
- the improvement in the operating performance compared to the previous year, (the EBITDA adjusted for the first quarter of 2025 amounted to euro 399.0 million, compared to euro 376.3 million for the first quarter of 2024);
- investments in property, plant and equipment and intangible assets to the amount of euro 60.0 million in the first quarter of 2025, (euro 53.4 million in first quarter of 2024), aimed mainly at High Value activities, at technology upgrades and at the automation of factories;
- "increases in the right of use" to the amount of euro 28.3 million for the first quarter of 2025, (euro 15.3 million for the first quarter of 2024). The difference compared to the first quarter of 2024, was mainly due to projects aimed at improving warehouse efficiency in Romania;
- the lower contribution to cash generation, by euro 19.9 million due to the "change in working capital and other", (which was negative due to the usual seasonality of the business and amounted to euro -865.7 million, compared to euro -845.8 million in the first quarter of 2024), was mainly linked to the creation of a higher level of inventories in the United States aimed at anticipating the impacts resulting from the tariffs.
Net cash flow for the first quarter of 2025, also highlighted the following main performances, compared to the same period of 2024:
- financial expenses paid were lower by euro 14.1 million;
-
taxes paid were higher by euro 6.9 million;
-
payments related to non-recurring and restructuring expenses which were lower by euro 7.8 million, had been higher for the first quarter of 2024 due to the restructuring programmes of the 2023 financial year;
- extraordinary transactions with a total negative impact of euro 18.6 million, of which euro 5.8 million was due to the acquisition of the company Telco S.r.l. which occurred at the beginning of January 2025, and euro 12.8 million for the payment into the capital account of the Middle East and North Africa Tyre Company, a joint venture with Saudi Arabia's Public Investment Fund (PIF). In the first quarter of 2024, the consolidation of Hevea-Tec, following its acquisition, had had an impact of euro 23.0 million.
OUTLOOK FOR 2025
| OUTLOOK FOR 2025 | ||
|---|---|---|
| (in billions of euro) | 2024 | 2025E |
| Revenues | 6.77 | ~6.8 ÷ ~7.0 |
| EBIT margin adjusted | 15.7% | ~16% |
| Investments (CapEx) | 0.42 | ~0.42 |
| % of revenues | 6.1% | ~6% |
| Net cash flow before dividends |
0.53 | ~0.55 ÷ ~0.57 |
| Net Financial Position NFP/EBITDA adj. |
-1.93 1.27 |
~-1.6 ~1.0x |
| ROIC post taxes |
23.2% | ~23% |
Market outlook
Pirelli confirms the forecast – already announced on February 26 – of a substantially flat (~-1% ÷ +1%) Car tyre market with a more resilient High Value, driven by the replacement channel, and with an estimated fall in Standard. Nevertheless, the uncertainty of the economic context could translate, especially in the second part of the year, into a slowdown in demand compared with estimates.
Introduction of USA tariffs
The United States generates over 20% of group revenues with 5% of demand in the country served locally, in Georgia, thanks to one of the most highly automated factories in the group, 55% through imports from Mexico and the remaining roughly 40% from Brazil and Europe The current tariff scenario entails:
- 25% on imported Car tyres from Europe and Brazil from May 3;
- No tariff on imports from Mexico (in that Pirelli is a "USMCA compliant" producer);
- Universal and reciprocal tariffs on imports of motorcycle and bicycle tyres from all countries with different percentages depending on the source.
Based on this scenario, Pirelli has remodulated its mitigation plan, compared with that which was anticipated on February 26, forecasting a revision of commercial flows, temporary increase of
inventories, adjustment of commercial policy and program of cost reductions on top of the existing plan
Given the first quarter results, Pirelli confirms the targets announced on February 26 which foresee:
- Revenues between ~6.8 and ~7.0 billion euro, with:
- o Volumes forecast to grow by between ~+1% and ~+2%;
o price/mix improving by between ~+2% / ~+3% driven mainly by the product mix;
- o forex impact between ~-2.5% / ~-1.5%;
- Profitability improving on an annual basis with an Adjusted Ebit Margin of ~16%
- Net cash generation before dividends between ~550 and ~570 million euro;
- Investments of ~420 million euro (~6% of revenues)
- NFP/Adjusted Ebitda ratio of ~1 times with a Net financial position of ~-1.6 billion euro
The tariff scenario continues to evolve with negotiations ongoing between the United States and its main commercial partners. Uncertainty persists regarding the effective impact and duration of these tariffs.
Should current tariffs remain in force for the whole year, the mitigation plan already being implemented will guarantee the Adjusted Ebit target and cash generation at the lower end of guidance, therefore achieving the deleveraging target.
SIGNIFICANT EVENTS SUBSEQUENT TO THE END OF THE QUARTER
In April 2025, the US administration announced the introduction of tariffs for the Auto&Parts sector starting from May 3, 2025. These include universal tariffs and reciprocal tariffs on various countries, the latter being temporarily suspended. Additionally, tariffs on products compliant with the USMCA agreements from Mexico and Canada are also temporarily suspended.
The tariff scenario is continuously evolving with ongoing negotiations between the United States and major trading partners. Uncertainties remain regarding the actual impacts and the duration of these tariffs.
If the current tariff scenario is confirmed and remains in effect throughout the year, the mitigation plan already in place and described in the paragraph "Outlook for 2025" will ensure the targets of Adjusted Ebit and cash generation at the lower end of the guidance, thereby achieving the deleverage objective.
On April 23, 2025, Pirelli and CTS, an independent operator specialising in retail and services for the tyre industry, active in Northern Europe, signed a preliminary agreement for a long-term strategic partnership that will allow Pirelli to strengthen its commercial presence and its High Value strategy in the region, and for CTS to further strengthen its ability to serve customers throughout Sweden. Under the terms of the transaction, CTS will acquire Däckia AB from Pirelli, which currently consists of a network of 60 directly owned points of sale, and 42 affiliated points of sale, operating in Sweden. The preliminary value of the acquisition is approximately SEK 260 million (approximately euro 24 million). The transaction, which is subject to the customary closing conditions and the attainment of regulatory approvals, is expected to be finalised by July 2025.
At the same time, an agreement between Pirelli and Däckia will come into effect for the supply of tyres until 2030, which will guarantee the distribution of Pirelli products and its role as a main supplier. This alliance will allow Pirelli to rely on an even more structured distribution system with an expected greater market coverage, and on CTS's retail specialisation, which distinguishes it in the region.
On April 28, 2025, the Pirelli & C. S.p.A. Board of Directors approved the Financial Statements at December 31, 2024 by majority vote, with nine out of 15 directors voting in favour. Chairman Jiao Jian and Directors Chen Aihua, Zhang Haitao, Chen Qian and Fan Xiaohua voted against, while Grace Tang abstained.
The financial Report, submitted on the proposal of Chief Executive Andrea Casaluci, includes a disclosure stating that, following the issuance of the DPCM Golden Power, MPI Italy (and, to that effect, Sinochem), no longer exercises control over Pirelli pursuant to IFRS 10. At the same time Pirelli, pursuant to the aforementioned accounting standard, is not deemed to be under the control of any entity.
The verification of the existence of control by the Sinochem Group through Marco Polo Italy (MPI Italy), had been raised by the Board of Statutory Auditors and by management following the issuance of the DPCM Golden Power, and the matter was examined in depth with the assistance of audit firms and leading law firms. The decision was also made in compliance with the CONSOB order, which had referred the matter to the Board of Directors for an assessment be conducted in accordance
with the International Accounting Standard IFRS 10. The Directors who had voted against the Financial Statements or had abstained, justified their dissent solely on the basis of the declaration the termination of Sinochem's control over Pirelli pursuant to IFRS 10, and disagreed with the related reasons also in consideration of the fact that the Shareholders' Agreement between Camfin and the CNRC/MPI Italy is still in force, and therefore, in their opinion, the CNRC/MPI Italy retains control over Pirelli pursuant to Article 93 of the TUF (Testo Unico della Finanza, Italy's Consolidated Law on Finance).
Management recalled that the decision regarding the absence of control by the shareholder Sinochem represented a first, though not conclusive, step in the necessary process of aligning the Company's corporate governance with regulatory requirements in the United States, which is a key market in the High Value tyre segment and in the development and deployment of Cyber Tyre technology. Management therefore reiterated that it will continue its dialogue with the main Shareholders, in order to align Pirelli's corporate governance with US regulations, particularly those concerning connected vehicles, in the interest of the Company and all its stakeholders.
The 2024 financial year closed with a consolidated net income of euro 501.1 million, which had increased by +1% compared to euro 495.9 million for the 2023 financial year, and with revenues which had increased by +1.9% to euro 6,773.3 million. The financial year also saw a further improvement in sustainability performance.
The Board of Directors also approved the results of the Parent Company, Pirelli & C. S.p.A., which reported a net income of euro 302.0 million for 2024, an increase of +24.3% compared to euro 242.9 million for the 2023 financial year. The Board of Directors, in keeping with the dividend policy of the 2024-2025 Industrial Plan Update, which for the 2024 financial year provides for a distribution of approximately 50% of the consolidated net income, will propose to the Shareholders' Meeting, the distribution of a dividend of euro 0.25 per share (euro 0.198 per share for the 2023 financial year), for a total amount of euro 250 million. The dividend relative to the 2024 financial year, will be placed in payment as of June 25, 2025 (with an ex-dividend date of June 23, 2025 and a record date of June 24, 2025).
Also on April 28, 2025, Pirelli announced that the Shareholders' Meeting will be held in an Ordinary Session in a single call, on June 12, 2025, to approve the 2024 Financial Statements and the related resolutions concerning the distribution of the dividend; to approve the Remuneration Policy and, for the part related to the Total Shareholder Return, the adoption of the medium-long term monetary incentive plan for the Group's management for the 2025-2027 three-year period (2025-2027 LTI); and to cast an advisory vote on the remuneration paid for the 2024 financial year. The annual "Report on Corporate Governance and Ownership Structure" will also be presented to the Shareholders' Meeting. The Shareholders' Meeting was convened on May 6, 2025.
Also on April 28, 2025, following the release of Pirelli's press statement, Marco Polo International Italy S.r.l. issued a note stating the following:
"The press release issued by Pirelli's Board of Directors on 28 April 2025 states that Pirelli no longer has a controlling shareholder under IFRS 10.
Marco Polo International Italy S.r.l. ("MPI") expresses its deep disappointment and strong opposition to the assessment regarding control made by Pirelli.
According to Pirelli's press release, this conclusion would be due to the Golden Power Decree (DPCM) of 16 June 2023. However, this assessment is not acceptable, particularly considering that the DPCM in question does not contain any provision depriving MPI of control over Pirelli; on the contrary, it presupposes it.
Furthermore, MPI continues to hold a significant stake allowing it to exercise dominant influence over Pirelli's ordinary shareholders' meeting pursuant to Article 2359, paragraph 1, no. 2 of the Italian Civil Code, and therefore continues to control Pirelli & C. S.p.A., even though, in compliance with the aforementioned Decree, it does not exercise management and coordination activities pursuant to Article 2497 et seq. of the Italian Civil Code, as required by the DPCM.
Moreover, as a listed company, Pirelli should have provided adequate and complete disclosure regarding MPI's control pursuant to Article 93 of the Consolidated Law on Finance (TUF), without prejudice to the fact that MPI has valid grounds to assert the continued existence of its control even under IFRS 10.
As a responsible shareholder of Pirelli, we have always strictly complied with Italian and foreign laws, and we will continue to do so, working collaboratively with all competent authorities, while ensuring the protection of MPI's interests and always supporting Pirelli's growth and development."
Following the aforementioned statement by Marco Polo International Italy, Pirelli on the same date responded as follows:
"In reference to the statement from Marco Polo International Italy, Pirelli rejects its content and confirms the correctness of the analysis conducted by the management and approved by the Board of Directors. The Company notes, also in view of Consob's provision, that the Board of Directors was called upon to carry out an evaluation regarding the existence of control in accordance with the IFRS 10 following the adoption of the DPCM of June 16, 2023 and include it in the financial report. These evaluations and the relative conclusions are reported in detail in the Directors' Report on Operations which will be available by April 30, 2025. It should also be noted that the Board voted on the proposal of management, which in 2024 achieved the best results in the Tyre sector. The DPCM Golden Power defined a web of measures operating overall to protect the autonomy of Pirelli & C. SpA and its management. A management not nominated by the shareholder Sinochem and whose autonomy and continuity protect the industrial culture of Pirelli".
ALTERNATIVE PERFORMANCE INDICATORS
This document, in addition to the financial measures provided for by the International Financial Reporting Standards (IFRS), also includes measures derived from the latter, even though not provided for by the IFRS (Non-GAAP Measures), in compliance with the ESMA Guidelines on Alternative Performance Indicators (ESMA/2015/1415 Guidelines) published on October 5, 2015. These measures are presented to allow for a better assessment of the results of the Group's operations, and should not be considered as alternatives to those required by the IFRS.
Specifically, the Non-GAAP Measures used were as follows:
- EBITDA: equal to the EBIT but excludes the depreciation and amortisation of property, plant and equipment and intangible assets. The EBITDA is used to measure the ability to generate earnings, excluding the impacts deriving from investments;
- EBITDA adjusted: an alternative measure to the EBITDA which excludes non-recurring, restructuring and one-off expenses;
- EBITDA margin: calculated by dividing the EBITDA by revenues from sales and services. This measure is used to evaluate operating efficiency, excluding the impacts deriving from investments;
- EBITDA margin adjusted: calculated by dividing the EBITDA adjusted by revenues from sales and services. This measure is used to evaluate operating efficiency, excluding the impacts deriving from investments and the operating costs attributable to non-recurring, restructuring and one-off expenses.
- EBIT: an intermediate measure which is derived from the net income/(loss), but which excludes taxes, financial income and financial expenses and the net income/(loss) from equity investments. The EBIT is used to measure the ability to generate earnings, including the impacts deriving from investments;
- EBIT adjusted: an alternative measure to the EBIT which excludes the amortisation of intangible assets relative to assets recognised as a consequence of Business Combinations and the operating costs attributable to non-recurring, restructuring and one-off expenses;
- EBITDA margin: calculated by dividing the EBITDA by revenues from sales and services. This measure is used to evaluate operating efficiency;
- EBITDA margin adjusted: calculated by dividing the EBITDA adjusted by revenues from sales and services. This measure is used to evaluate operating efficiency, excluding the amortisation of intangible assets relative to assets recognised as a consequence of Business Combinations and the operating costs attributable to non-recurring, restructuring and one-off expenses;
- Net income/(loss) adjusted: calculated by excluding the following items from the net income/(loss):
- o the amortisation of intangible assets relative to assets recognised as a consequence of Business Combinations, and the operating costs attributable to non-recurring, restructuring and one-off expenses;
- o non-recurring expenses/income recognised under financial income and financial expenses;
- o non-recurring expenses/income recognised under taxes, as well as the tax impact relative to the adjustments referred to in the previous points;
- Fixed assets: this measure is constituted by the sum of the Financial Statement items, "Property, plant and equipment", "Intangible assets", "Investments in associates and joint ventures", "Other financial assets at fair value through other Comprehensive Income" and "Other non-current financial assets at fair value through the Income Statement". Fixed assets represent the non-current assets included in the net invested capital;
- Net operating working capital: this measure is constituted by the sum of "Inventory", "Trade receivables" and "Trade payables";
- Net working capital: this measure is constituted by the net operating working capital and by other receivables and payables, including tax receivables and payables, and by the derivative financial instruments not included in the net financial position. This measure represents the short-term assets and liabilities included in the net invested capital, and is used to measure short-term financial stability;
- Net invested capital: this measure is constituted by the sum of (i) fixed assets, and (ii) net working capital. Net invested capital is used to represent the investment of financial resources;
- Provisions: this measure is constituted by the sum of "Provisions for liabilities and charges (current and non-current)", "Provisions for employee benefit obligations (current and non-current)", "Other non-current assets", "Deferred tax liabilities" and "Deferred tax assets";
- Net financial debt: calculated pursuant to the CONSOB Notice dated July 28, 2006 and in compliance with the ESMA Guidelines regarding disclosure requirements pursuant to the Prospectus Regulation applicable as of May 5, 2021. Net financial debt represents borrowings from banks and other financial institutions net of cash and cash equivalents, of other current financial assets at fair value through the Income Statement, of current financial receivables (included in the Financial Statements under "Other receivables"), and of the derivative hedging instruments for items included in the net financial position and included in the Financial Statements under "Derivative financial instruments" as current assets, current liabilities and noncurrent liabilities;
- Net Financial Position: this measure represents the net financial debt less the non-current financial receivables (included in the Financial Statements under "Other receivables") and the non-current derivative financial hedging instruments for items included in the net financial position and included in the Financial Statements under "Derivative financial instruments" as non-current assets. The net financial position is an alternative measure to net financial debt but which includes non-current financial assets;
- Liquidity margin: this measure is constituted by the sum of the Financial Statement items, "Cash and cash equivalents", "Other financial assets at fair value through the Income Statement" and the committed but unutilised credit facilities;
- Operating net cash flow: calculated as the change in the net financial position relative to operations management;
- Net cash flow before dividends, extraordinary transactions and investments: calculated by adding the change in the net financial position due to financial and tax management, to the operating net cash flow;
- Net cash flow before dividends paid by the Parent company: calculated by adding the change in the net financial position due to extraordinary transactions and the management of investments, to the net cash flow before dividends, extraordinary transactions and investments;
- Net cash flow: calculated by subtracting the dividends paid by the Parent company from the net cash flow before dividends paid by the Parent company;
- Investments in intangible and owned tangible assets (CapEx): calculated as the sum of investments (increases) in intangible assets and investments (increases) in property, plant and equipment excluding any increases relative to the right of use;
- Increases in the right of use: calculated as the increases in the right of use relative to lease contracts;
- ROIC: calculated as the ratio between the EBIT adjusted net of tax effects and the average net invested capital net of provisions which does not include, "Investments in associates and joint ventures", "Other financial assets at fair value through Other Comprehensive Income", "Other non-current financial assets at fair value through the Income Statement", "Other non-current assets", the intangible assets relative to assets recognised as a consequence of Business Combinations, the deferred tax liabilities relative to the latter and the "Provisions for employee benefit obligations current and non-current".
OTHER INFORMATION
ROLE OF THE BOARD OF DIRECTORS
For more information on the role of the Board of Directors, reference should be made to the Report on Corporate Governance and Ownership Structure contained in the 2024 Annual Report group of documents, as well as to the additional information published on the Pirelli website (www.pirelli.com) in the Governance section.
INFORMATION ON THE SHARE CAPITAL AND OWNERSHIP STRUCTURE
The subscribed and paid-up share capital at the date of approval of this Financial Report amounted to euro 1,904,374,935.66, represented by 1,000,000,000 ordinary registered shares without indication of nominal value. Each share entitles the holder to one vote. There are no other classes of shares.
The Extraordinary Pirelli Shareholders' Meeting held on March 24, 2021, resolved to increase the share capital in cash, by payment in one or more tranches, excluding option rights pursuant to Article 2441, paragraph 5, of the Italian Civil Code, for a total countervalue, including any share premium, of euro 500,000,000.00 to service the conversion of the "EUR 500 million Senior Unsecured Guaranteed Equity-linked Bonds due 2025", to be paid in one or more tranches through the issue of ordinary shares of the Company, with regular dividend entitlements, up to a maximum amount of euro 500,000,000.00, to exclusively service the "EUR 500 million Senior Unsecured Guaranteed Equity-linked Bonds due 2025" issued by the Company, in accordance with the criteria provided for in the relevant Regulation, with the understanding that the final subscription date for the newly issued shares is set as December 31, 2025 and that, in the event that the capital increase has not been fully subscribed by that date, the same shall in any case be deemed to have been increased by an amount equal to the subscriptions received and as of that date, with the express authorisation for the Directors to issue the new shares as they are subscribed. No fractions of shares will be issued or delivered and no cash payments or adjustments shall be made in lieu of any such fractions.
Updated excerpts of the existing agreements between some of the Shareholders, including the indirect Shareholders of the Company, which contain the provisions of the Shareholders' Agreements regarding, amongst other things, the corporate governance of Pirelli, are available on the Company's website. For further details on the Company's corporate governance and ownership structure, reference should be made to the Report on Corporate Governance and Ownership Structure contained in the 2024 Annual Report group of documents, as well as to the additional information available on the Pirelli website (www.pirelli.com), in the Governance and Investor Relations sections.
WAIVER OF THE PUBLICATION OF INFORMATION DOCUMENTS
The Board of Directors, taking into account the simplification of the regulatory requirements introduced by CONSOB, with CONSOB Regulation No. 11971 of May 14, 1999, as subsequently amended and supplemented ("Issuers Regulation"), resolved to exercise the option to derogate, pursuant to the provisions of Article 70, paragraph 8, and Article 71, paragraph 1-bis of the aforesaid
Regulation, from the obligation to publish the prescribed disclosure documents at the time of significant mergers, de-mergers, capital increases through contributions of assets in kind, acquisitions and disposals.
RELATED PARTY TRANSACTIONS
Pirelli, in compliance with CONSOB Regulation 17221 of March 12, 2010, as subsequently amended and supplemented, has adopted a specific procedure for Related Party Transactions, which was most recently updated on May 9, 2024 during the periodic reviews of the existing procedures ("RPT Procedure").
The RPT Procedure is available on the Company's website (www.pirelli.com). For further details, reference should be made to the section on the Directors' Interests and Related Party Transactions, included in the Report on Corporate Governance and Ownership Structure, contained in the 2024 Annual Report.
Related Party Transactions do not qualify as either atypical or unusual, but are instead part of the ordinary course of business for the companies of the Group, and are carried out in the interest of the individual companies. These transactions are conducted in accordance with conditions that are standard or equivalent to those of the market. Furthermore, they are carried out in compliance with the RPT Procedure.
The effects of the Related Party Transactions, contained in the Income Statement and the Statement of Financial Position, on the consolidated data of the Group, were as follows:
| The effects of the Related Party Transactions, contained in the Income Statement and the Statement | ||||||||
|---|---|---|---|---|---|---|---|---|
| of Financial Position, on the consolidated data of the Group, were as follows: | ||||||||
| STATEMENT OF FINANCIAL POSITION | 03/31/2025 | 12/31/2024 | ||||||
| (in millions of euro) | Associates and joint ventures |
Other related parties | Remuneration for Directors and Key | Total related parties | Associates and joint ventures |
Other related parties | Remuneration for Directors and Key | Total related parties |
| Managers | Managers | |||||||
| Other non-current receivables of which financial |
7.4 7.4 |
- - |
- - |
7.4 7.4 |
7.8 7.8 |
- - |
- - |
7.8 7.8 |
| Trade receivables | 6.6 | 5.6 | - | 12.2 | 9.4 | 1.6 | - | 11.0 |
| Other current receivables | 83.6 | 0.9 | - | 84.5 | 87.1 | 3.9 | - | 91.0 |
| of which financial | 76.1 | - | - | 76.1 | 78.6 | - | - | 78.6 |
| 5.4 - |
8.9 | - | 14.3 | 6.3 | 9.5 | - | 15.8 | |
| Borrowings from banks and other financial institutions non-current | - - |
- 16.9 |
- 16.9 |
- - |
- - |
- 19.4 |
- 19.4 |
|
| Other non-current payables | - | - | 7.8 | 7.8 | ||||
| Provisions for liabilities and charges non-current | - | |||||||
| Provisions for employee benefit obligations non-current | - | - | 9.1 | 9.1 | ||||
| Borrowings from banks and other financial institutions current Trade payables |
2.3 54.3 |
1.4 24.1 |
- - |
3.7 78.3 |
2.4 69.5 |
1.3 59.5 |
- - |
3.7 129.0 |
| Other current payables | 0.0 | 0.5 | 23.6 | 24.1 | - | 0.4 | 22.5 | 22.9 |
| INCOME STATEMENT | 01/01 - 03/31/2025 | 01/01 - 03/31/2024 | ||||||
| (in millions of euro) | Associates and joint ventures |
Other related parties | Remuneration for Directors and Key | Total related parties | Associates and joint ventures |
Other related parties | Remuneration for Directors and Key | Total related parties |
| Revenues from sales and services | 11.2 | 0.8 | Managers - |
12.0 | 14.0 | 0.5 | Managers - |
14.5 |
| Other income | 14.5 | 9.4 | - | 23.9 | 5.5 | 7.4 | - | 12.9 |
| Raw materials and consumables used (net of change in inventories) |
(4.8) | (2.2) | - | (7.0) | (1.0) | (2.0) | - | (2.9) |
| Personnel expenses | - | - | (3.3) | (3.3) | - | - | (4.2) | (4.2) |
| Other costs | (64.6) | (21.0) | (5.0) | (90.5) | (54.0) | (21.6) | (4.1) | (79.6) |
| Financial income Financial expenses |
0.6 (0.1) |
0.0 (0.1) |
- - |
0.7 (0.2) |
0.7 (0.1) |
0.2 (0.1) |
- - |
0.9 (0.2) |
| 01/01 - 03/31/2025 | 01/01 - 03/31/2024 | ||||||
|---|---|---|---|---|---|---|---|
| (in millions of euro) | Associates and joint ventures |
Other related parties | Remuneration for Directors and Key Managers |
joint ventures | Other related parties | Total related parties | |
TRANSACTIONS WITH ASSOCIATES AND JOINT VENTURES
Transactions - Statement of Financial Position
The item other non-current receivables refers to a loan granted by Pirelli Tyre S.p.A. to the Indonesian joint venture PT Evoluzione Tyres.
The item trade receivables includes receivables for the purchase of raw material and for services rendered, mainly to the Chinese joint venture Jining Shenzhou Tyre Co., Ltd., to the amount of euro 5.8 million.
The item other current receivables mainly refers to receivables from the Jining Shenzhou Tyre Co., Ltd., for royalties to the amount of euro 3 million, and to the amount of euro 4.1 million, for various services.
The financial portion refers to the financing granted by the Pirelli Tyre Co., Ltd. to the Jining Shenzhou Tyre Co., Ltd.
The item borrowings from banks and other financial institutions non-current refers to the payables of the company Pirelli Deutschland GmbH to the company Industriekraftwerk Breuberg GmbH, for the hire of machinery.
The item borrowings from banks and other financial institutions current refers to a portion of the aforementioned short-term debt.
The item trade payables mainly refers to trade payables to the Jining Shenzhou Tyre Co., Ltd.
Transactions - Income statement
The item revenues from sales and services mainly refers to the sales of raw materials and semi-finished products to the Jining Shenzhou Tyre Co., Ltd.
The item other income includes royalties to the amount of euro 11.6 million, mainly from the joint venture the Middle East and North Africa Tyre Company.
The item other costs mainly refers to costs for:
- the purchase of tyres from the Jining Shenzhou Tyre Co., Ltd. to the amount of euro 43.1 million;
- the purchase of Motorcycle products from PT Evoluzione Tyres to the amount of euro 13.6 million;
- the purchase of energy and payment of an operational management fee to Industriekraftwerk Breuberg GmbH, totalling euro 7.4 million.
The item financial income refers mainly to interest on loans disbursed to the two joint ventures.
OTHER RELATED-PARTY TRANSACTIONS
The transactions detailed below refer mainly to transactions with the Aeolus Tyre Co., Ltd. and to transactions with the Prometeon Group, companies belonging to the Sinochem group.
Transactions - Statement of Financial Position
The items trade receivables and other current receivables refer mainly to receivables from companies of the Prometeon Group.
The item borrowings from banks and other financial institutions current refers to the payables of Pirelli Otomobil Lastikleri A.S. to Prometeon Turkey Endüstriyel ve Ticari Lastikler A.S. for the hire of machinery.
The item trade payables mainly refers to payables to companies of the Prometeon Group to the amount of euro 21.4 million
Transactions - Income statement
The item other income comprises amounts from the companies of the Prometeon Group, mainly:
- the licence fee for know-how charged by Pirelli Tyre S.p.A. to the amount of euro 2.8 million;
- royalties recorded by Pirelli Tyre S.p.A. in respect of the license agreement for the use of the Pirelli trademark, to the amount of euro 3.2 million.
The item raw materials and consumables used refers mainly to costs payable to companies of the Sinochem Group for the purchase of direct materials, consumables and compounds, of which euro 2.2 million were costs to payable the Chinese company, Pirelli Tyre Co., Ltd.
The item other costs mainly includes the purchase of truck products for a total amount of euro 19.5 million from the Prometeon Group, of which euro 17 million was carried out by the Brazilian company Comercial e Importadora de Pneus Ltda., and subsequently resold to retail customers.
REMUNERATION FOR DIRECTORS AND KEY MANAGERS
Remuneration for Directors and Key Managers can be summarised as follows:
- the Statement of Financial Position items provisions for liabilities and charges non-current and provisions for employee benefit obligations non-current, include the provisions for the monetary three-year 2023-2025, 2024-2026 and 2025-2027 Long Term Incentive Plans (LTI) to the amount of euro 10.4 million, (euro 8.6 million at December 31, 2024), the provisions for the Short Term Incentive Plan (STI) to the amount of euro 7.9 million (euro 6.4 million at December 31, 2024), as well as severance indemnities to the amount of euro 7.7 million (euro 12.2 million at December 31, 2024);
- the Statement of Financial Position item other current payables, includes the short-term portion related to the 2022-2024 STI and LTI Plans;
- the items personnel expenses and other costs include euro 0.6 million related to employees' leaving indemnities (TFR) and severance indemnities (euro 0.6 million for the first quarter of 2024), as well as provisions for short-term benefits to the amount of euro 2.5 million (euro 3.2 million for the first quarter of 2024) and for long-term benefits to the amount of euro 1.9 million (euro 1.5 million for the first quarter of 2024).
ATYPICAL AND/OR UNUSUAL OPERATIONS
Pursuant to CONSOB Notice No. DEM/6064293 of July 28, 2006, it should be noted, that during the first quarter of the 2025 financial year, the Company did not carry out any atypical and/or unusual transactions, as defined in the aforementioned Notice.
The Board of Directors Milan, May 14, 2025
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (in thousands of euro)
| (in thousands of euro) CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
03/31/2025 | 12/31/2024 |
|---|---|---|
| Property, plant and equipment | 3,385,337 | 3,427,756 |
| Intangible assets | 5,132,810 | 5,159,729 |
| Investments in associates and joint ventures | 132,478 | 120,790 |
| Other financial assets at fair value through other Comprehensive Income | 72,434 | 63,294 |
| Deferred tax assets | 231,791 | 228,740 |
| Other receivables | 323,444 | 309,526 |
| Tax receivables | 10,227 | 9,973 |
| Other assets Derivative financial instruments |
94,311 - |
93,838 4,326 |
| Non-current assets | 9,382,832 | 9,417,972 |
| Inventories | 1,503,313 | 1,467,707 |
| Trade receivables | 1,001,220 | 622,915 |
| Other receivables | 422,942 | 444,010 |
| Other financial assets at fair value through Income Statement Cash and cash equivalents |
123,178 878,525 |
165,965 1,502,741 |
| Tax receivables | 30,167 | 36,989 |
| Derivative financial instruments | 36,309 | 22,323 |
| Current assets | 3,995,654 | 4,262,650 |
| Total Assets | 13,378,486 | 13,680,622 |
| Equity attributable to the owners of the Parent Company: | 5,842,395 | 5,756,071 |
| Share capital | 1,904,375 | 1,904,375 |
| Reserves | 3,819,220 | 3,383,715 |
| Net income / (loss) | 118,800 | 467,981 |
| Equity attributable to non-controlling interests: | 170,669 | 156,183 |
| Reserves | 162,294 | 123,060 |
| Net income / (loss) | 8,375 | 33,123 |
| Total Equity | 6,013,064 | 5,912,254 |
| Borrowings from banks and other financial institutions | 2,765,696 | 3,068,598 |
| Other payables | 78,484 | 79,947 |
| Provisions for liabilities and charges | 98,405 | 101,123 |
| Deferred tax liabilities | 984,873 | 990,250 |
| Provisions for employee benefit obligations | 189,482 | 184,040 |
| Tax payables | 4,188 | 4,001 |
| Derivative financial instruments | - | - |
| Non-current liabilities | 4,121,128 | 4,427,959 |
| Borrowings from banks and other financial institutions | 1,059,800 | 760,857 |
| Trade payables | 1,606,449 | 2,081,617 |
| Other payables | 417,364 | 392,744 |
| Provisions for liabilities and charges | 28,976 | 31,363 |
| Provisions for employee benefit obligations | 1,531 | 557 |
| Tax payables | 90,835 | 63,150 |
| Derivative financial instruments | 39,339 | 10,121 |
| Current liabilities | 3,244,294 | 3,340,409 |
CONSOLIDATED INCOME STATEMENT (in thousands of euro)
| CONSOLIDATED INCOME STATEMENT (in thousands of euro) | ||
|---|---|---|
| 01/01 - 03/31/2025 | 01/01 - 03/31/2024 | |
| Revenues from sales and services | 1,758,640 | 1,695,529 |
| Other income | 89,621 | 77,835 |
| Changes in inventories of unfinished, semi-finished and finished products | 33,965 | 16,243 |
| Raw materials and consumables used (net of change in inventories) Personnel expenses |
(589,782) (334,056) |
(549,193) (319,030) |
| Amortisation, depreciation and impairment | (148,033) | (141,631) |
| Other costs | (567,456) | (548,266) |
| Net impairment of financial assets | (3,477) | (5,692) |
| Increases in fixed assets due to internal works | 459 | 675 |
| Operating income/(loss) | 239,881 | 226,470 |
| Net income/(loss) from equity investments | 5,817 | 6,081 |
| - share of net income/(loss) of associates and joint ventures | 5,581 | 6,081 |
| - dividends | 236 | - |
| Financial income | 26,672 | 36,063 |
| Financial expenses | (86,170) | (146,195) |
| Net income / (loss) before taxes | 186,200 | 122,419 |
| Taxes | (59,025) | (22,002) |
| Net income / (loss) | 127,175 | 100,417 |
| Attributable to: | ||
| 118,800 | 93,751 | |
| Owners of the Parent Company | 8,375 | 6,666 |
| Non-controlling interests |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in thousands of euro)
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in thousands of euro) | |||
|---|---|---|---|
| 01/01 - 03/31/2025 | 01/01 - 03/31/2024 | ||
| A | Total Net income / (loss) | 127,175 | 100,417 |
| - Remeasurement of employee benefits | (385) | - | |
| - Tax effect | - | - | |
| - Fair value adjustment of other financial assets at fair value through Other | 9,601 | 6,589 | |
| B | Comprehensive Income Total items that may not be reclassified to Income Statement |
9,216 | 6,589 |
| Exchange rates differences from translation of foreign Financial Statements | |||
| - Gains / (losses) | (57,512) | 41,257 | |
| Fair value adjustment of derivatives designated as cash flow hedges: | |||
| - Gains / (losses) | 6,479 | 6,031 | |
| - (Gains) / losses reclassified to Income Statement | (2,539) | (4,718) | |
| - Tax effect | (953) | (320) | |
| Share of Other Comprehensive Income related to associates and joint ventures | (4,901) | 1,582 | |
| C | Total items reclassified / that may be reclassified to Income Statement | (59,426) | 43,832 |
| D | Total Other Comprehensive Income (B+C) | (50,210) | 50,421 |
| Total Comprehensive Income / (loss) | 76,965 | 150,838 | |
| A+D | |||
| Attributable to: - Owners of the Parent Company - Non-controlling interests |
63,623 13,342 |
142,457 8,381 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AT 03/31/2025
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AT 03/31/2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (in thousands of euro) | Share Capital | Translation reserve | Attributable to the Parent Company Other reserves with changes in the statement of Comprehensive Income * |
Other reserves/ retained earnings |
Total attributable to the Parent Company |
Non- controlling interests |
Total | ||
| Total at 12/31/2024 | 1,904,375 | (834,999) | (54,438) | 4,741,133 | 5,756,071 | 156,183 | 5,912,254 | ||
| Other components of Comprehensive Income | - | (67,381) | 12,203 | - | (55,178) | 4,968 | (50,210) | ||
| Net income / (loss) | - | - | - | 118,800 | 118,800 | 8,375 | 127,175 | ||
| Total Comprehensive Income / (loss) | - | (67,381) | 12,203 | 118,800 | 63,622 | 13,343 | 76,965 | ||
| Dividends approved | - | - | - | - | - | - | - | ||
| Effects of hyperinflation accounting in Turkey | - | - | - | 4,404 | 4,404 | - | 4,404 | ||
| Effects of hyperinflation accounting in Argentina | - | - | - | 19,618 | 19,618 | - | 19,618 | ||
| Other | - | - | (366) | (954) | (1,320) | 1,143 | (177) | ||
| Total at 03/31/2025 | 1,904,375 | (902,380) | (42,601) | 4,883,001 | 5,842,395 | 170,669 | 6,013,064 | ||
| (in thousands of euro) | BREAKDOWN OF OTHER RESERVES WITH CHANGES IN THE STATEMENT OF COMPREHENSIVE INCOME* | ||||||||
| Reserve for fair value adjustment of financial assets at fair value through Other Comprehensive Income |
Reserve for cash flow | Remeasurement of hedge employee benefits |
Tax effect | Income | Other reserves with changes in the statement of Comprehensive |
||||
| Total at 12/31/2024 | 3,156 | 16,160 | (30,398) | (43,356) | (54,438) | ||||
| 9,601 | 3,940 | (385) | (953) | 12,203 | |||||
| Other components of Comprehensive Income | |||||||||
| Other changes | - | - | (366) | - | (366) |
BREAKDOWN OF OTHER RESERVES WITH CHANGES IN THE STATEMENT OF COMPREHENSIVE INCOME*
| (in thousands of euro) | |||||
|---|---|---|---|---|---|
| Reserve for fair value adjustment of financial assets at fair value through Other Comprehensive Income |
Reserve for cash flow hedge |
Remeasurement of employee benefits |
Tax effect | Other reserves with changes in the statement of Comprehensive Income |
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AT 03/31/2024
| (in thousands of euro) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AT 03/31/2024 (in thousands of euro) |
Reserve for fair value adjustment of financial assets at fair value through Other Comprehensive Income |
BREAKDOWN OF OTHER RESERVES WITH CHANGES IN THE STATEMENT OF COMPREHENSIVE INCOME* Reserve for cash flow hedge |
Remeasurement of employee benefits |
Tax effect | Other reserves with changes in the statement of Comprehensive Income |
||
|---|---|---|---|---|---|---|---|
| Share Capital | Translation reserve | Attributable to the Parent Company Other reserves with changes in the statement of Comprehensive Income * |
Other reserves/ retained earnings |
Total attributable to the Parent Company |
Non- controlling interests |
Total | |
| Total at 12/31/2023 | 1,904,375 | (667,280) | (22,600) | 4,279,898 | 5,494,393 | 125,201 | 5,619,594 |
| Other components of Comprehensive Income | - | 41,123 | 7,583 | - | 48,706 | 1,715 | 50,421 |
| Net income / (loss) | - | - | - | 93,751 | 93,751 | 6,666 | 100,417 |
| Total Comprehensive Income / (loss) | - | 41,123 | 7,583 | 93,751 | 142,457 | 8,381 | 150,838 |
| Dividends approved | - | - | - | - | - | - | - |
| Effects of hyperinflation accounting in Turkey | - | - | - | 5,949 | 5,949 | - | 5,949 |
| Effects of hyperinflation accounting in Argentina | - | - | - | 92,637 | 92,637 | - | 92,637 |
| Other | - | - | (485) | (444) | (929) | 601 | (328) |
| Total at 03/31/2024 | 1,904,375 | (626,157) | (15,502) | 4,471,791 | 5,734,507 | 134,183 | 5,868,690 |
| (in thousands of euro) | BREAKDOWN OF OTHER RESERVES WITH CHANGES IN THE STATEMENT OF COMPREHENSIVE INCOME* | ||||||
| Reserve for fair value adjustment of financial assets at fair value through Other Comprehensive Income |
Reserve for cash flow hedge |
Remeasurement of employee benefits |
Tax effect | Other reserves with changes in the statement of Comprehensive Income |
|||
| Total at 12/31/2023 | (6,666) | 31,958 | 8,653 | (56,545) | (22,600) | ||
| Other components of Comprehensive Income | 6,589 | 1,313 | - | (321) | 7,583 | ||
| Other changes | 1 | - | (448) | (38) | (485) | ||
| Total at 03/31/2024 | (76) | 33,271 | 8,205 | (56,904) | (15,502) |
BREAKDOWN OF OTHER RESERVES WITH CHANGES IN THE STATEMENT OF COMPREHENSIVE INCOME*
| (in thousands of euro) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Reserve for fair value adjustment of financial assets at fair value through Other Comprehensive Income |
Reserve for cash flow hedge |
Remeasurement of employee benefits |
Tax effect | Other reserves with changes in the statement of Comprehensive Income |
||||
CONSOLIDATED STATEMENT OF CASH FLOWS (in thousands of euro)
| CONSOLIDATED STATEMENT OF CASH FLOWS (in thousands of euro) | |||
|---|---|---|---|
| 01/01 - 03/31/2025 | 01/01 - 03/31/2024 | ||
| Net income / (loss) before taxes | 186,200 | 122,419 | |
| Reversal of amortisation, depreciation, impairment losses and restatement of property, plant and equipment and intangible assets |
148,033 | 141,631 | |
| Reversal of Financial (income) / expenses | 59,498 | 110,132 | |
| Reversal of Dividends | (236) | - | |
| Reversal of share of net result from associates and joint ventures | (5,581) | (6,081) | |
| Reversal of accruals to provisions and other accruals | 24,074 | 14,813 | |
| Net Taxes paid | (31,598) | (24,727) | |
| Change in Inventories | (57,669) | (20,861) | |
| Change in Trade receivables | (387,609) | (294,465) | |
| Change in Trade payables | (407,628) | (485,135) | |
| Change in Other receivables | 8,109 | (63,986) | |
| Change in Other payables | 27,845 | 49,039 | |
| Uses of Provisions for employee benefit obligations | (481) | (5,477) | |
| Uses of Provisions for liabilities and charges | (11,540) | (9,832) | |
| A | Net cash flow provided by / (used in) operating activities | (448,583) | (472,530) |
| Investments in owned tangible assets Disposal of owned tangible assets |
(122,278) 1,756 |
(114,572) 755 |
|
| Investments in intangible assets | (2,175) | (1,736) | |
| Disposal of intangible assets | 1,971 | - | |
| Acquisition of investments in subsidiaries | (2,473) | (20,233) | |
| Acquisition of investments in associates and joint ventures | (12,838) | - | |
| Change in Financial receivables from associates and joint ventures | (171) | (9,804) | |
| Dividends received from other non-current financial assets at FVTOCI | 236 | - | |
| B | Net cash flow provided by / (used in) investing activities | (135,972) | (145,590) |
| Change in Borrowings from banks and other financial institutions due to draw downs | 56,586 | 704,894 | |
| Change in Borrowings from banks and other financial institutions due to repayments and | (46,129) | (500,332) | |
| other | |||
| Change in Financial receivables / Other current financial assets at fair value through Income Statement |
42,663 | 93,621 | |
| Financial income / (expenses) | (45,746) | (63,899) | |
| Dividends paid | - | (1,300) | |
| Repayment of principal and payment of interest for lease liabilities | (35,688) | (32,333) | |
| C | Net cash flow provided by / (used in) financing activities | (28,314) | 200,651 |
| D | Total cash flow provided / (used) during the period (A+B+C) | (612,869) | (417,469) |
| E | Cash and cash equivalents at the beginning of the financial year | 1,501,274 | 1,248,850 |
| F | Exchange rate differences from translation of cash and cash equivalents | (10,751) | 2,212 |
| G | Cash and cash equivalents at the end of the period (D+E+F) (°) | 877,654 | 833,593 |
| (°) | of which: | ||
| cash and cash equivalents | 878,525 | 836,497 | |
| bank overdrafts | (871) | (2,904) | |
FORM AND CONTENT
The publication of this Interim Financial Report at March 31, 2025 is carried out on a voluntary basis, pursuant to Article 82-ter of the Issuers' Regulation. The document is not prepared in accordance with IAS 34 (Interim Financial Reporting). For the recognition and measurement of the accounting values, reference is made to the International Accounting Standards (IAS) and the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and their relative interpretations, issued by the International Financial Reporting Interpretations Committee (IFRIC), as approved by the European Commission and in force at the time of the approval of this Interim Financial Report, which are the same as those used in the preparation of the Consolidated Financial Statements at December 31, 2024, to which reference should be made for more details, with the exception of:
- "Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability", which were applicable from January 1, 2025, but have had no impact on the Group;
- Income taxes, which are recognised based on the best estimate of the expected weighted average tax rate for the full financial year, and adjusted to include any non-recurring items in the relevant reporting period, consistent with the indications provided by IAS 34 for the preparation of Interim Financial Statements;
- IAS 36, with specific reference to the impairment testing of intangible assets with an indefinite useful life, such as goodwill and the Pirelli Brand, which is not applied to the Interim Financial Reports at March 31 and September 30.
EXCHANGE RATES
| EXCHANGE RATES | ||||||
|---|---|---|---|---|---|---|
| (local currency vs euro) | Period-end Exchanges Rates | Change | Average Exchange Rates 1Q | Change in | ||
| 03/31/2025 | 12/31/2024 | in % | 2025 | 2024 | % | |
| Thai Bhat | 36.7060 | 35.6760 | 2.89% | 35.7222 | 38.7190 | (7.74%) |
| Swedish Krona | 10.8490 | 11.4865 | (5.55%) | 11.2315 | 11.2792 | (0.42%) |
| Australian Dollar | 1.7318 | 1.6772 | 3.26% | 1.6772 | 1.6511 | 1.58% |
| Canadian Dollar | 1.5533 | 1.4948 | 3.91% | 1.5105 | 1.4639 | 3.18% |
| Singaporean Dollar | 1.4519 | 1.4164 | 2.51% | 1.4186 | 1.4552 | (2.51%) |
| US Dollar | 1.0815 | 1.0389 | 4.10% | 1.0523 | 1.0858 | (3.08%) |
| Swiss Franc | 0.9531 | 0.9412 | 1.26% | 0.9458 | 0.9491 | (0.34%) |
| 52.8872 | 3.52% | 53.2256 | 38.9540 | 36.64% | ||
| Egyptian Pound | ||||||
| 54.7509 | ||||||
| Turkish Lira (°) | 40.7019 | 36.7429 | 10.77% | 40.7019 | 34.8023 | 16.95% |
| Romanian Leu | 4.9771 | 4.9741 | 0.06% | 4.9764 | 4.9735 | 0.06% |
| Argentinian Peso (°) | 1,161.5310 | 1,072.1448 | 8.34% | 1,161.5310 | 927.5838 | 25.22% |
| Mexican Peso | 21.9741 | 21.0567 | 4.36% | 21.4924 | 18.4558 | 16.45% |
| South African Rand | 19.8782 | 19.6188 | 1.32% | 19.4580 | 20.5069 | (5.11%) |
| Brazilian Real | 6.1993 | 6.4363 | (3.68%) | 6.1608 | 5.3768 | 14.58% |
| Chinese Renminbi | 7.7632 | 7.4680 | 3.95% | 7.5515 | 7.7122 | (2.08%) |
| Saudi Arabian Riyal | 4.0569 | 3.9029 | 3.95% | 3.9477 | 4.0721 | (3.06%) |
| Russian Rouble British Pound Sterling |
89.6553 0.8354 |
106.1028 0.8292 |
(15.50%) 0.75% |
98.2017 0.8357 |
98.6211 0.8563 |
(0.43%) (2.40%) |
NET FINANCIAL POSITION
| NET FINANCIAL POSITION (in thousands of euro) |
03/31/2025 | 12/31/2024 |
|---|---|---|
| Current borrowings from banks and other financial institutions | 1,059,800 | 760,856 |
| Current derivative financial instruments (liabilities) | 31,754 | 3,503 |
| Non-current borrowings from banks and other financial institutions | 2,765,696 | 3,068,599 |
| Non-current derivative financial instruments (liabilities) | - | - |
| Total gross debt | 3,857,250 | 3,832,958 |
| Cash and cash equivalents | (878,525) | (1,502,741) |
| Other financial assets at fair value through Income Statement | (123,178) | (165,965) |
| Current financial receivables ** | (103,770) | (113,297) |
| Current derivative financial instruments (assets) Net financial debt * |
(21,373) 2,730,404 |
(16,577) 2,034,378 |
| Non-current derivative financial instruments (assets) | - | (4,326) |
| Non-current financial receivables ** | (107,874) | (104,288) |
| Total net financial (liquidity) / debt position | 2,622,530 | 1,925,764 |
| * Pursuant to CONSOB Notice of July 28, 2006 and in compliance with the ESMA guidelines regarding disclosure requirements pursuant to the Prospectus Regulation applicable from May 5, 2021. ** The item "financial receivables " is reported net of the relative provisions for impairment which amounted to euro 8,652 thousand at March 31, 2025 (euro 8,369 thousand at December 31, 2024). Net financial debt is summarised below, based on the format provided by the ESMA guidelines: |
||
| (in thousands of euro) | 03/31/2025 | 12/31/2024 |
| Cash and cash equivalents | (878,525) | (1,502,741) |
| Other current financial assets | (248,321) | (295,839) |
| of which Current financial receivables | (103,770) | (113,297) |
| of which Current derivative financial instruments (assets) | (21,373) | (16,577) |
| of which Other financial assets at fair value through Income Statement | (123,178) | (165,965) |
| Liquidity | (1,126,846) | (1,798,580) |
Net financial debt is summarised below, based on the format provided by the ESMA guidelines:
| pursuant to the Prospectus Regulation applicable from May 5, 2021. ** The item "financial receivables " is reported net of the relative provisions for impairment which amounted to euro 8,652 thousand at March 31, 2025 (euro 8,369 thousand at December 31, 2024). Net financial debt is summarised below, based on the format provided by the ESMA guidelines: |
|||||||
|---|---|---|---|---|---|---|---|
| (in thousands of euro) | 03/31/2025 | 12/31/2024 | |||||
| Cash and cash equivalents | (878,525) | (1,502,741) | |||||
| Other current financial assets | (248,321) | (295,839) | |||||
| of which Current financial receivables | (103,770) | (113,297) | |||||
| of which Current derivative financial instruments (assets) | (21,373) | (16,577) | |||||
| (123,178) | (165,965) | ||||||
| of which Other financial assets at fair value through Income Statement | |||||||
| Liquidity | (1,126,846) | (1,798,580) | |||||
| Current borrowings from banks and other financial institutions | 1,059,800 | 760,856 | |||||
| Current derivative financial instruments (liabilities) | 31,754 | 3,503 | |||||
| Current financial debt | 1,091,554 | 764,359 | |||||
| Current net financial debt | (35,292) | (1,034,221) | |||||
| Non-current borrowings from banks and other financial institutions | 2,765,696 | 3,068,599 | |||||
| Non-current derivative financial instruments (liabilities) Non-current financial debt |
- 2,765,696 |
- 3,068,599 |
|||||
| Total net financial debt * | 2,730,404 | 2,034,378 |
