Pirelli 2025 Financial Report
On February 25, 2026, Pirelli, a renowned Italian tire manufacturer, officially released its 2025 full-year performance report, comprehensively showcasing its operational achievements during a critical period of strategic transformation. As a technology benchmark focusing on two-wheeled vehicle and passenger car tires, Pirelli demonstrated robust performance amidst the complex and volatile global tire market in 2025.
It not only successfully achieved its annual performance targets but also became the only major European and American tire manufacturer to achieve positive sales growth, demonstrating the effectiveness of its transformation strategy and market resilience with solid data.
The financial report shows that Pirelli achieved total revenue of €6.776 billion (approximately RMB 54.9 billion) in 2025, precisely within the initial target range of €6.7 billion to €6.8 billion. Against the backdrop of overall pressure on the global tire industry and widespread declines among major European and American giants, this achievement particularly highlights its strategic focus.
During the same period, Michelin, Bridgestone, and Goodyear all experienced varying degrees of sales decline—Michelin's sales in the first three quarters decreased by 4.4% year-on-year, Bridgestone's revenue decreased by 1.1% during the same period, and Goodyear suffered a net loss. Pirelli achieved a slight year-on-year increase of 0.04%, making it the only leading tire company in Europe and the US to achieve revenue growth.
The steady improvement in profitability was another highlight of Pirelli's 2025 performance. The report shows that the company's adjusted EBIT for the full year reached €1.0814 billion (approximately RMB 8.8 billion), a year-on-year increase of 2%; net profit saw an even more significant year-on-year increase of 5.9%, ultimately reaching €530.7 million.
This growth was attributed to the continuous strengthening of internal operational efficiency and cost control capabilities, effectively offsetting external uncertainties such as raw material price fluctuations and exchange rate changes, demonstrating strong profitability resilience.
Looking at the quarterly performance, Pirelli continued its steady momentum in the fourth quarter of 2025, laying a solid foundation for a successful conclusion to the full year's results. Adjusted EBIT for the quarter was €245.9 million, a slight increase from €244.6 million in the same period of 2024. Benefiting from continued product portfolio optimization, the adjusted EBIT margin also improved from 15.4% in the same period last year to 15.6%, reflecting the substantial positive impact of product structure upgrades on profitability.
Pirelli's key to its success against the trend lies in its unwavering focus on the high-end market and its continuous drive for product innovation. In 2025, the company further strengthened its presence in the high-value tire sector, with high-end product sales accounting for 79%, up from 76% in 2024.
During the year, Pirelli launched several innovative products, including the fifth-generation P ZERO flagship tire built on artificial intelligence and virtual development technology, and the Cinturato P9 AS all-season tire, which balances anti-skid performance and fuel efficiency, significantly enhancing product competitiveness and market adaptability.
Meanwhile, Pirelli continues to invest heavily in technological research and development and sustainable development, injecting momentum into long-term growth. Its Cyber Tyre technology won the 2025 Breakthrough in Automotive Technology Award for "Most Innovative Connected Vehicle Technology," and in collaboration with Bosch Engineering, it will be applied to future Aston Martin luxury models.
Regarding its green transformation, the company uses over 70% bio-based and recycled materials in its high-end products, and all its factories are 100% powered by renewable electricity, further solidifying its sustainable brand image in the global market.
Cash flow and financial structure also demonstrate robust performance. In 2025, Pirelli's net cash flow, excluding the impact of bond conversion, reached €577 million, and its net debt-to-adjusted EBIT ratio decreased to 0.71, indicating continued optimization of its financial structure.
Looking ahead to 2026, the company has set a revenue target of €6.7 billion to €6.9 billion, continuing its robust development strategy. Against the backdrop of intensifying competition in the global tire industry, Pirelli is expected to leverage product innovation, structural optimization, and sound finances to further solidify its leading position in the industry and drive its transformation in depth.
