Pirelli 9M revenue, net profit rise on price/mix gains, high-value tyre growth

Overview

• Italy tire maker's nine-month revenue grew 1.6% yr/yr, driven by organic growth and price/mix

• Net profit for nine months rose 7.4% yr/yr

• Adjusted EBIT margin stable at 15.9%, supported by improved product mix and cost containment

Outlook

• Pirelli confirms 2026 adjusted EBIT margin target of around 16%

Result Drivers

• PRICE/MIX IMPROVEMENT - Co said growth was driven by improved product mix and price increases, particularly in high value segments

• COST CONTAINMENT - Co said cost containment measures and structural efficiencies helped offset higher input costs and inflation

• HIGH VALUE SEGMENT - Co highlighted continued growth and market share gains in high value car and moto tires, especially in replacement channels

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the tires & rubber products peer group is "buy"

• Wall Street's median 12-month price target for Pirelli & C. S.p.A. is €7.30, about 8% above its November 4 closing price of €6.76

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Nov 5 - Brembo third quarter core earnings slip on tougher comparison, confirms outlook

• Nov 4 - German tire maker Continental revenue misses on portfolio changes

• Nov 3 - Germany's Schaeffler 9-month sales flat on China hit, EBIT margin rises

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)