How Pirelli Navigated H1 2026 Challenges
According to Pirelli's interim report released on July 29, 2026, the company achieved revenue of €3.4945 billion (approximately RMB27.074 billion) in the first half of the year, a slight decrease of 0.1% compared to the same period in 2025, remaining basically stable.
Excluding the accounting effects of exchange rates and high inflation (-2.1%) and changes in the scope of consolidation (-0.5%), the organic growth rate was +2.5%. Adjusted EBIT was €557.8 million, basically flat compared to the same period last year, with a profit margin maintained at 16%. Net profit increased to €299 million, mainly benefiting from a decrease in financial expenses and an increase in equity investment income.
Second-quarter revenue was €1.7573 billion, a year-on-year increase of 1.0%, with price and product mix contributing +2.9%. The company offset the adverse effects of rising raw material costs and tariffs through product mix optimization and efficiency initiatives. Quarterly adjusted EBIT was €280.4 million, with a profit margin of 16%; net profit was €142.2 million, a year-on-year increase of 3.9%.
High-value tires accounted for 82% of total revenue, a 2 percentage point increase year-on-year, reflecting the company's continued strategic focus on high-tech, high-margin products. This strategy has also helped Pirelli expand its partnerships with major automakers in North America and the Asia-Pacific region.
In the original equipment market, approximately 90% of new certifications in the first half of the year were for 19-inch and larger rims, with specialty tires (including Run Flat and PNCS) accounting for 70% of new certifications, and about 60% targeting electric vehicles. Ferrari Luce, Rivian R2S, and the new Audi Q7 and Q9 SUVs all chose Pirelli as original equipment. The P Zero family has accumulated over 300 original equipment certifications since its refresh in 2023.
Cyber tire technology uses built-in tire sensors to collect data such as tire pressure, temperature, and wear. This data is processed by Pirelli's algorithms and transmitted to the vehicle control unit to optimize systems such as ESP and ABS. This system has been integrated into the vehicle's electronic architecture in collaboration with Bosch Engineering, with the first mass-produced vehicle to feature it being the Pagani Utopia Roadster. In September 2025, Aston Martin announced that it would incorporate this technology into future models.
Regarding production capacity, in May 2026, Pirelli announced the commencement of Cyber tire production at its Georgia plant. On June 30, the company announced an investment plan of approximately $1 billion to $1.2 billion for the US market, to expand domestic production capacity and introduce the latest MIRS manufacturing process. Pirelli also confirmed full-year revenue guidance of €6.75 billion to €6.95 billion, with an adjusted EBIT margin of approximately 16%.
Looking at the performance in the first half of 2026, Pirelli's growth logic is clear and sustainable: using high-value tires as the core engine, mitigating external cost pressures through product portfolio upgrades and pricing strategies, consolidating its technological barriers in the high-end original equipment market through cutting-edge R&D represented by Cyber tire technology; and responding to supply chain security demands amid trade policy uncertainties through US production capacity expansion.
The 13.3% increase in net profit did not come from a significant expansion in operating profit, but rather benefited more from the optimization of its financial structure—a point that deserves rational consideration.
Looking ahead to the second half of the year, Pirelli has raised its full-year organic growth forecast to approximately 4%. However, the evolving situation in the Middle East, the pace of implementation of US tariff policies, and the competitive landscape of the global automotive industry's electrification transformation will remain key variables affecting its performance.
Against the backdrop of the tire industry as a whole facing dual challenges of cost and demand, Pirelli has delivered a solid first-half performance. However, whether its strategic achievements can continue to translate into profitability remains to be seen and will require data from subsequent quarters.
