Finance
Brembo Sees No Growth in 2026 Earnings and Revenue, Shares Fall
Published by Global Banking & Finance Review®
Posted on March 18, 2026
2 min readLast updated: March 18, 2026
Quick Summary
Brembo expects flat revenue and unchanged EBITDA margin in 2026, citing weak automotive recovery and worsening geopolitical conditions. Its 2025 net profit dropped 20% to €209.3m, dividend set at €0.30/share, and shares tumbled roughly 10%.
Brembo shares fall as it guides for no revenue, margin growth in 2026
Brembo's Financial Performance and Market Outlook
MILAN, March 18 (Reuters) - Italian premium brake maker Brembo sees no growth this year in its revenue and core profit margins, and they could dip if the global geopolitical scenario deteriorates further, it said on Wednesday, sending shares down.
Impact of Geopolitical Tensions
U.S.-Israeli strikes on Iran and Tehran's response have led to a broader regional conflict, drawing in several Gulf countries and sending oil and other commodity prices sharply higher while disrupting trade and shipping routes.
Exposure to Middle Eastern Markets
Brembo supplies premium and luxury carmakers such as Ferrari, Maserati, Tesla and BMW, many of which have long relied on Middle Eastern markets as a source of high-margin sales.
2026 Guidance and Financial Results
The company said that for 2026 it expected both revenues and margin on core earnings (EBITDA) to be in line with those of 2025 "in the absence of further geopolitical deterioration and given the automotive sector context that remains challenging".
Milan-traded shares in the company erased earlier gains after it published its final 2025 results, dropping by as much as 11%. At around 1300 GMT they were down 8%.
Gloomy Outlook
Executive Commentary
"Looking towards 2026, the geopolitical scenario has further deteriorated and the global automotive market has yet to show signs of recovery", Executive Chairman Matteo Tiraboschi said in a statement.
2025 Financial Performance
In 2025, revenues at the Bergamo-based group fell almost 4% to 3.70 billion euros ($4.26 billion), with an EBITDA margin of 16.5%, down from 17.2% a tear earlier.
Future Monitoring and Guidance
The company will continue to monitor both geopolitical and industry developments, and will update its guidance accordingly, it said.
Dividends and Net Profit
Brembo also said net profit fell 20% last year to 209 million euros, and pledged to pay dividends this year of 0.30 euro per share.
($1 = 0.8679 euros)
(Reporting by Romolo Tosiani in Gdansk and Giulio Piovaccari in Milan; Editing by Milla Nissi-Prussak and Alvise Armellini)
Key Takeaways
- •Brembo projects no growth in core profit margin or revenue for 2026 amid ongoing industry and geopolitical challenges.
- •In 2025, core profit margin stood at 16.5% on €3.704 billion in revenue; net profit fell 20% to €209.3 million, with a €0.30/share dividend announced.
- •Shares fell about 10% after the announcement, underscoring investor concern over lack of auto sector recovery
Frequently Asked Questions about Brembo sees no growth in 2026 earnings and revenue, shares fall
1Why did Brembo shares fall by 10%?
Brembo shares fell after the company projected no growth in earnings or revenue for 2026, citing continued weakness in the global automotive market.
2How did Brembo perform financially in 2025?
In 2025, Brembo's net profit fell by 20% to 209.3 million euros.
3What dividend did Brembo announce from its 2025 earnings?
Brembo pledged to distribute a dividend of 0.30 euro per share to investors from its 2025 earnings.
4What reasons did Brembo cite for the lack of growth outlook?
Brembo cited a deteriorating geopolitical scenario and continued weakness in the global automotive market as reasons for the lack of growth.
