Pirelli & C Spa Azioni (PLLIF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good evening, ladies and gentlemen. The results for the first half of 2025 once again confirm the resilience of our business model, which continues to generate value in a complex and challenging external environment. We close the semester with strong results expected higher than our peers. We stand out for organic growth of... Grazie, ragazzi. It's okay? Organic growth of 4.4%, driven by solid commercial performance. Improved profitability thanks to the effectiveness of internal levers, which more than offset the negative impacts of the external environment. Solid cash generation, supported by the operational performance and disciplined working capital management. And finally, significant progress in sustainability a core element of our strategy. Geopolitical and trade tensions continue to wait on the outlook for 2025. Recent estimates point to a slowdown in global economic growth, which is even more pronounced in the United States. In addition, global inflation of 3.2% and 2.7% in the United States. High volatility is expected in exchange rates, concerns about U.S. economic outlook, uncertainties about Fed policies and high U.S. public debt pushed the dollar to its lowest level against the euro for years. This trend continues to be uncertain and The relation between the dollar and the different currencies remain volatile. We see now that there has been an evaluation of the dollars lately. The agreement on tariffs between the EU and the US, which is going to be ratified in the coming days, on the one hand reduces uncertainty and prevents a trade escalation, while on the other hand imposes significant costs on export and is expected to fuel inflationary pressures. In this context, the ability to react is crucial. As Minister Casalucci will illustrate, we are taking co...