Pirelli & C Spa Azioni (PLLIF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Ladies and gentlemen, welcome to Pirelli's conference call in which Pirelli top management will present companies first quarter 2026 results. A live webcast of the event and the presentation slides are available in the investor relations section of the Pirelli website. I remind you that the Q&A session will follow the presentation. Now I would like to introduce Mr. Marco Tronchetti-Provera. Please go ahead, sir. Thank you and good evening, ladies and gentlemen. The results for the first quarter of 2026 confirm the resilience of Pirelli business model in a highly challenging environment. In line with the strategic priorities, we consolidated the position in the high value segment, leveraging our brand strength technological leadership, and a broad and distinct in-product portfolio. By doing so, we gained market share in both the car and motorcycle business. Profitability remains among the best in the industry, the highest among Tier 1 players, with just a dividend margin of 16%, despite the negative impact of exchange rates, inflation, and U.S. tariffs. Thanks to the rigorous financial management, we closed the first quarter with a cash flow trend in line with last year and with the usual seasonality of the business. External environment remains complex and characterized by the high uncertainty. The crisis in the Middle East is a significant macroeconomic risk with growing pressures on input cost inflation. The closure of the Strait of Hormuz is already impacting energy and logistic prices with effects that are gradually spreading the value chain and economic growth. In this context, demand in the high value segment is proving resilient, with growth expected to be in the mid-single digits. In response to this scenario, we acted promptly by implementing a mitigation pl...