Pirelli & C Spa Azioni (PLLIF) Q2 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 half 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. Good evening, ladies and gentlemen. The first half results confirm Pierelli's ability to generate value in an uncertain environment marked by growing geopolitical tensions. We have further consolidated our leadership in the high-value segment by leveraging on the strength of our brand, technological innovation, and a distinctive product portfolio. The resilience of our business model and implementation of strategic priorities allowed us to maintain a profitability among the best in the industry, offsetting the negative effects of pension in the Middle East, U.S. tariffs and exchange rate volatility. Cash flow generation remains in line with the seasonality of the business and with the expectations for the full year reflecting the group's financial discipline. The second half of the year, the macroeconomic and geopolitical picture is expected to remain volatile. The resumed conflicts in the Middle East has further pressure on energy costs, with Brent price back at about $90 per barrel, and the TTF gas approaching 60 euros per megawatt hour. Furthermore, there are persistent signs of weak demand, especially in car manufacturing and the standard segment. while demanding a high value replacement is proving resilient to a single digit growth rate. Despite the challenging external environment that I described, based on the quality of our first half resu...