Pirelli & C SpA (BIT:PIRC) reported second-quarter 2026 results broadly in line with market expectations, with revenue and operating profit both slightly ahead of analyst forecasts. The Italian tire manufacturer also reaffirmed its full-year guidance while updating several assumptions underpinning its outlook.
Revenue for the quarter came in around 1% above market consensus, while operating profit also exceeded analyst estimates by approximately 1%.
Outlook Updated as Currency Offsets Volume Pressure
Although Pirelli left its full-year guidance unchanged, the company revised its revenue assumptions to reflect changing market conditions.
Management now expects foreign exchange movements to contribute a positive 1% impact during 2026, offsetting an anticipated 1% drag from lower sales volumes.
The company also warned that raw material costs will become less favourable in the second half of the year. After providing a €30 million benefit during the first six months, raw material prices are now expected to create a €70 million headwind in the second half, with the impact beginning in the third quarter.
U.S. Demand and Pricing Expected to Support Growth
Pirelli expects stronger sales volumes in the United States during the second half of 2026, supported by easier year-over-year comparisons and existing customer orders that provide visibility for the next three to four months.
The company also expects pricing and product mix to improve following price increases introduced during May and June.
Organic growth is forecast at approximately 4% in the second half, made up of around 3% from pricing and product mix improvements and about 1% from higher volumes. That compares with organic growth of 2.5% in the first half and 1.4% in the second quarter.
Efficiency Measures Continue to Deliver Savings
Pirelli’s cost-efficiency programme generated savings of €81 million during the first half and is expected to contribute a further €69 million in the second half, bringing total savings for 2026 to around €150 million.
Management also expects an additional €20 million to €30 million in benefits from other mitigation initiatives designed to offset inflationary and cost pressures.
Financial Outlook
The company expects financial expenses for 2026 to total between €190 million and €200 million, with the second half likely to be affected by higher costs related to hyperinflation accounting.
Pirelli also forecasts an effective tax rate of between 32% and 34% for the full year.
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