Finance
Pirelli trims 2025 revenue guidance due to forex impact
Published by Global Banking & Finance Review®
Posted on July 31, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 31, 2025
2 min readLast updated: January 22, 2026
Pirelli reduces its 2025 revenue forecast due to currency fluctuations, citing a 2.9% revenue loss. Despite this, the company maintains a 16% EBIT margin target.
(Reuters) -Italian tyremaker Pirelli trimmed its 2025 revenue forecast on Thursday due to the expected impact of adverse currency movements.
The company lowered its guidance to a range of around 6.7-6.8 billion euros ($7.66-7.78 billion) from its previous target of around 6.8-7.0 billion euros.
Pirelli said that adverse currency movements accounted for a 2.9% revenue loss compared to last year's first-half due to the weakness of the U.S. dollar and the volatility of emerging country currencies against the euro.
However, the firm confirmed its target to achieve an around 16% adjusted EBIT margin for the whole year.
WHY IT’S IMPORTANT
Pirelli flagged that the results were approved with 9 out of 15 votes from board members, with opposition from the Sinochem-linked members, including the Chairman Jiao Jian.
Chinese and Italian shareholders are in a dispute over the group's governance. China's state-controlled Sinochem is Pirelli's largest investor with a 37% stake, while Camfin, the vehicle of Italian businessman Marco Tronchetti Provera, holds 27.4%.
Camfin claims that a large Chinese presence in Pirelli poses a threat to its ambitions to expand its business in the United States. The firm makes over 20% of its revenues in North America.
BY THE NUMBERS
Pirelli, the sole supplier of tyres for Formula One cars, posted a second-quarter core profit (adjusted EBIT) of 278.5 million euros, up 0.7% year-on-year, topping analysts' consensus forecast of 274 million euros, according to data provided by the company. The core profit margin for the quarter came in at 16%.
The Milan-based firm's second-quarter net profit came in at 136.8 million euros, above a 123 million euros consensus, while its revenues totalled 1.74 billion euros, matching estimates.
($1 = 0.8742 euros)
(Reporting by Romolo Tosiani in Gdansk; Editing by Matt Scuffham)
Pirelli has lowered its revenue guidance for 2025 to a range of around 6.7-6.8 billion euros, down from a previous target of 6.8-7.0 billion euros.
Pirelli indicated that adverse currency movements accounted for a 2.9% revenue loss compared to last year's first half.
The firm confirmed its target to achieve an adjusted EBIT margin of around 16% for the whole year.
Pirelli is experiencing a dispute between Chinese and Italian shareholders, with Sinochem, the largest investor, holding a 37% stake.
Pirelli reported a second-quarter net profit of 136.8 million euros, exceeding the consensus estimate of 123 million euros.
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