Finance
Pirelli Raises Prices as Part of Middle East Crisis Mitigation Plan
Published by Global Banking & Finance Review®
Posted on April 16, 2026
2 min readLast updated: April 16, 2026
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Pirelli has initiated a mitigation plan in response to the Middle East crisis, implementing price increases and cost reductions to offset raw material inflation (~€20 m impact on 2026) and maintains its 2026 EBIT forecast at the lower end of guidance.
Pirelli Raises Tyre Prices, Implements Crisis Mitigation Strategy for 2025
Pirelli's Response to the Middle East Crisis and Financial Outlook
Mitigation Plan Activation
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.
2025 Full-Year Results and Forecasts
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.
Financial Projections
• Full-year forecasts Pirelli provided in February included an adjusted EBIT margin at around 16%, a slight improvement versus 2025
Details on Price Increases
• On Thursday Pirelli did not provide details about price increases it is implementing
Analyst Insights and Market Impact
Bank of America Analysis
• 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.
Offsetting Cost Inflation
• 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.
2026 EBIT Guidance
• 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)
Key Takeaways
- •Pirelli activated a mitigation plan amid Middle East energy instability, which includes raising tyre prices and cutting costs, to contain supply‑side disruptions.
- •Bank of America projects that raw material volatility from the crisis could shave around €20 million from Pirelli’s 2026 results, with price actions fully effective starting May.
- •Despite headwinds, Pirelli confirmed its 2026 adjusted EBIT target—estimated at about €1.07 billion—albeit at the lower boundary of its guidance.
Frequently Asked Questions about Pirelli raises prices as part of Middle East crisis mitigation plan
1Why is Pirelli increasing its tyre prices?
Pirelli is raising tyre prices as part of a mitigation plan to limit financial impacts from the ongoing Middle East crisis.
2What does Pirelli's mitigation plan include?
The plan involves price increases and additional cost cuts to offset raw material cost inflation due to the Middle East crisis.
3How will the Middle East crisis affect Pirelli's financial results?
Pirelli estimates a net impact of around 20 million euros on its 2026 results due to increased raw material costs.
4When will Pirelli's price increases take effect?
According to analysts, the tyremaker's price actions will have full impact starting in May.