MILAN, April 16 (Reuters) – Italian premium tyremaker Pirelli said on Thursday it had activated a “mitigation plan” to limit the effects of the ongoing Middle East crisis, which includes price increases and additional cost cuts.
Presenting its final full-year 2025 results, the company said actions taken, along with the expectation of a progressive normalisation of input costs and raw material volatility in the second half, allowed it to confirm forecasts for this year, although with an adjusted operating income (EBIT) at the lower end of guidance.
• Full-year forecasts Pirelli provided in February included an adjusted EBIT margin at around 16%, a slight improvement versus 2025
• On Thursday Pirelli did not provide details about price increases it is implementing
• Analysts at Bank of America said in a report earlier on Thursday, after attending a pre-close call on Wednesday with Pirelli’s investor relation team, that the tyremaker’s price actions would have full impact from May.
• Price cuts and cost reductions are expected to partly offset raw material cost inflation from the Middle East crisis, the net impact of which the company currently estimates at around 20 million euros ($23.5 million) on 2026 results, Bank of America said.
• Bank of America added a 2026 adjusted EBIT at the lower end of Pirelli’s guidance would amount to around 1.07 billion euros.
($1 = 0.8494 euros)
(Reporting by Giulio Piovaccari. Editing by Jane Merriman)
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