Pirelli & C. S.p.A.: Comprehensive Corporate Profile

Quick Facts / Company Snapshot

• Company Name: Pirelli & C. S.p.A.
• Founded: 1872
• Headquarters: Viale Piero e Alberto Pirelli 25, Milan, Italy
• Total Revenues (2024): 6,773.3 million euro
• Adjusted EBIT (2024): 1,060.5 million euro
• Net Income (2024): 501.1 million euro
• Total Employees: 31,219
• Manufacturing Plants: 18 production sites
• Industrial Presence: 12 countries
• Commercial Presence: Over 160 countries
• Points of Sale: Approximately 20,200
• R&D Expenditure (2024): 289.5 million euro
• R&D % of Sales: 4.3%
• Chairman: Jiao Jian
• Executive Vice Chairman: Marco Tronchetti Provera
• Chief Executive Officer: Andrea Casaluci

Company Overview

Pirelli & C. S.p.A. stands as a prominent global tyre manufacturer with a distinguished industrial tradition spanning over 150 years. The company is characterized by its exclusive specialization in the Consumer market, encompassing tyres for cars, motorcycles, and bicycles. This specific focus distinguishes Pirelli as a “Pure Consumer Tyre Company.”

The organization positions itself primarily in the High Value segment, which accounted for 76% of total turnover in 2024. This segment features products designed to achieve the highest levels of performance, safety, quietness, and road grip, supported by a significant technological component. The company’s operational model integrates a long industrial tradition with a capacity for innovation, product quality, and brand strength. Internationally, the brand is recognized as an icon of Italian technology, style, and excellence.

Pirelli operates through an integrated supply chain model that extends from product development to marketing. The company maintains a vast commercial presence with a network of approximately 20,200 loyal retailer points of sale in about 50 countries. The geographic exposure is heavily weighted towards the three main High Value markets: Europe, North America, and APAC, which together accounted for 81% of revenues as of December 31, 2024.

Business Segments and Revenue Breakup %

Pirelli’s business is identifiable in a single operating segment: Consumer Activities.

• Consumer Segment: This segment encompasses the development, production, and marketing of tyres for cars, motorcycles, and bicycles. It focuses on the High Value market, including products with rim diameters equal to or greater than 18 inches, Specialties, Super Specialties, and Premium Motorcycle tyres.
  • High Value Revenues: 76% of total group revenues.
  • Original Equipment (OE): 23% of total revenues. This channel involves direct supply to vehicle manufacturers.
  • Replacement Channel: 77% of total revenues. This channel serves the aftermarket for tyre replacement on vehicles already in circulation.

The company does not report separate revenue percentages for other distinct business lines outside of this single operating segment structure, focusing entirely on the Consumer tyre market.

History and Evolution

Founded in 1872, Pirelli has established itself as one of the world’s leading tyre manufacturers. Over its history of more than a century and a half, the company has combined industrial tradition with innovation.

The company has evolved into a pure player in the Consumer tyre market, divesting from industrial segments to focus solely on car, motorcycle, and bicycle tyres. A significant milestone in its recent history includes the celebration of 150 years of operation, reinforcing its status as an icon of Italian technology.

The company’s evolution is also marked by its deep involvement in motorsports. Pirelli has been present in rally racing since the inaugural season of the World Championship in 1973. It is the Global Tyre Partner for Formula One, a partnership confirmed until at least 2027. This involvement underscores the company’s commitment to using motorsport as an open-air laboratory for technological innovation.

Products and Services with Revenue Breakup %

Pirelli’s product offering is centered on the High Value segment, which delivers products with advanced technical characteristics.

Car Tyres

• High Value Tyres (≥18 inches): This category includes tyres designed for Prestige and Premium vehicles.
• Specialties: This includes Run Flat, Seal Inside, and Pirelli Noise Cancelling System (PNCS) technologies.
• Elect Technology: Specific product lines developed for electric vehicles (BEVs) and plug-in hybrids (PHEVs). Pirelli holds a market share of roughly 30% among Premium EV Original Equipment Manufacturers.
• Product Families: Key product families include P Zero, Cinturato, Scorpion, and Winter lines.

Motorcycle Tyres

• Premium Motorcycle Tyres: High-performance tyres for the motorcycle segment.
• New Products (2024/2025): Recent introductions include the DIABLO POWERCRUISER and the SCORPION MX32 MID SOFT.

Bicycle Tyres

• Cycling: High-end tyres for road and off-road cycling. New products include the P Zero Race TLR RS, the P4 Sport, and the Cinturato Road.

Services

• Pirelli CARE: A service model for tyre purchase and car care.
• CYCL-e around: An electric bicycle rental and management service eligible under Taxonomy activity 6.4.

Revenues are primarily categorised by channel:

• Replacement Channel: 77%
• Original Equipment Channel: 23%

Brand Portfolio with Revenue %

The company operates primarily under the Pirelli brand, which is a globally recognized asset representing technology and style.

In the motorcycle segment, the company also operates the Metzeler brand.

The financial reporting consolidates revenues under the single operating segment of Consumer Activities without explicit revenue breakup percentages for individual sub-brands beyond the primary distinction of the Pirelli master brand’s dominance in the High Value segment.

Geographical Presence and Region-wise Revenue %

Pirelli boasts a geographically diversified production and commercial footprint.

Manufacturing Footprint

• Total Plants: 18 tyre production sites.
• Countries with Production: 12 countries.
• Joint Ventures: Includes plants in Subang (Indonesia) and Shenzhou (China).

Commercial Footprint

• Global Presence: Over 160 countries.
• Points of Sale: Approximately 20,200.

Region-wise Revenue Breakup (2024):

• Europe: 39.0% of total revenues (2,643.8 million euro).
• North America: 25.2% of total revenues (1,706.3 million euro).
• APAC (Asia-Pacific): 17.0% of total revenues (1,149.0 million euro).
• South America: 11.8% of total revenues (798.8 million euro).
• Russia and MEAI (Middle East, Africa, India): 7.0% of total revenues (475.4 million euro).

Financial Performance Analysis

In 2024, Pirelli demonstrated solid growth and operational efficiency, exceeding targets announced during the year. The results confirm the effectiveness of the business model and the implementation of key Industrial Plan programmes.

Multi-Year Trend Analysis:

• Revenues: Increased from 6,650.1 million euro in 2023 to 6,773.3 million euro in 2024, representing a +1.9% growth. Organic growth was +4.4%.
• EBIT Adjusted: Rose from 1,001.8 million euro in 2023 to 1,060.5 million euro in 2024, a growth of +5.9%.
• Net Income: Increased slightly from 495.9 million euro in 2023 to 501.1 million euro in 2024 (+1.0%).
• Net Financial Position: Improved from a debt of 2,261.7 million euro in 2023 to a debt of 1,925.8 million euro in 2024.

Profit and Loss Analysis

Revenue Metrics

• Net Sales: 6,773.3 million euro.
• Organic Growth: +4.4% (excluding exchange rate effects).
• Price/Mix Effect: +2.5% improvement.
• Volume Effect: +1.9% positive performance.
• Exchange Rate Effect: -2.5% negative impact.

Profitability Metrics

• EBITDA Adjusted: 1,519.5 million euro (22.4% of net sales).
• EBITDA: 1,475.7 million euro (21.8% of net sales).
• EBIT Adjusted: 1,060.5 million euro (15.7% of net sales). This margin improved by +0.6 percentage points year-on-year.
• EBIT: 903.0 million euro (13.3% of net sales).
• Net Income: 501.1 million euro.
• Net Income Attributable to Owners of Parent: 468.0 million euro.
• Earnings Per Share (Basic): 0.47 euro.

Expenses

• Research and Development Expenses: 289.5 million euro (4.3% of net sales).
• High Value R&D Expenses: 272.8 million euro (5.3% of High Value sales).
• Personnel Expenses: 1,301.3 million euro.
• Raw Materials and Consumables Used: 2,177.4 million euro.
• Amortisation, Depreciation, and Impairment: 574.9 million euro.
• Other Costs: 2,227.4 million euro.
• Financial Expenses: 422.9 million euro.
• Taxes: 146.7 million euro (Tax rate: 22.6%).

Balance Sheet Analysis

Assets

• Total Assets: 13,680.6 million euro.
• Non-Current Assets: 9,418.0 million euro.
  • Property, Plant, and Equipment: 3,427.8 million euro.
  • Intangible Assets: 5,159.7 million euro.
  • Goodwill: 1,886.7 million euro (allocated to Consumer Activities).
  • Pirelli Brand: 2,270.0 million euro (indefinite useful life).
• Current Assets: 4,262.7 million euro.
  • Inventories: 1,467.7 million euro.
  • Trade Receivables: 622.9 million euro.
  • Cash and Cash Equivalents: 1,502.7 million euro.
  • Other Financial Assets at Fair Value (Current): 166.0 million euro.

Liabilities

• Total Equity: 5,912.3 million euro.
  • Attributable to Owners of Parent: 5,756.1 million euro.
  • Attributable to Non-Controlling Interests: 156.2 million euro.
• Non-Current Liabilities: 4,428.0 million euro.
  • Non-Current Borrowings: 3,068.6 million euro.
• Current Liabilities: 3,340.4 million euro.
  • Current Borrowings: 760.9 million euro.
  • Trade Payables: 2,081.6 million euro.

Debt and Liquidity

• Gross Debt: 3,833.0 million euro.
• Net Financial Position: 1,925.8 million euro.
• Liquidity Margin: 3,168.7 million euro. This covers debt maturities until the third quarter of 2029.

Cash Flow Analysis

Operating Activities

• Net Cash Flow Provided by Operating Activities: 1,292.6 million euro.
• Operating Net Cash Flow: 988.8 million euro. This reflects improved operating performance (EBITDA adjusted).

Investing Activities

• Net Cash Flow Used in Investing Activities: (421.3) million euro.
• Investments in Property, Plant, and Equipment and Intangible Assets (CapEx): 414.9 million euro.

Financing Activities

• Net Cash Flow Used in Financing Activities: (610.7) million euro.
• Dividends Paid: (204.4) million euro.
• Financial Expenses Paid: (206.2) million euro.

Free Cash Flow Insights

• Net Cash Flow Before Dividends: 533.9 million euro. This exceeded the target range of 500-520 million euro.
• Net Cash Flow (Total): 335.9 million euro.

Management Discussion & Analysis (MD&A)

Operating Results Narrative Management highlights that 2024 closed with results showing growth that exceeded targets announced in November. The results demonstrate the effectiveness of the business model and the implementation of key Industrial Plan programmes. The commercial front saw strengthened positioning in Car High Value, with volume growth for Car ≥18” at +5%, outperforming the market’s +4%. There was a deliberate reduction in exposure to Standard volumes (-4%), consistent with a selectivity strategy.

Macro Environment Impacts The global economy grew by +2.7% in 2024, despite geopolitical tensions. Global inflation stood at 4.5%, improving in the fourth quarter.

• Europe: Growth was contained (+1.0%), with varying trends across countries.
• USA: GDP grew by +2.8%, supported by the labour market and consumption.
• China: GDP growth was +5.0%, slightly down due to real estate crisis effects.
• Exchange Rates: The euro averaged US$ 1.08, stable compared to 2023. However, volatility affected emerging market currencies.
• Raw Materials: Brent crude averaged US$ 79.8 per barrel (-3%). Natural rubber prices rose significantly by +27% to US$ 1,744 per tonne.

Future Projections For 2025, management confirms the targets set in the Industrial Plan despite high uncertainties regarding US tariffs.

• Revenues: Expected between ~6.8 and ~7.0 billion euro.
• EBIT Margin Adjusted: Expected at ~16%.
• Net Cash Flow Before Dividends: Expected between ~550 and ~570 million euro.
• Net Financial Position: Expected at ~-1.6 billion euro.
• Investments: Expected at ~420 million euro.

Board of Directors and Leadership Team

Board of Directors

• Chairman: Jiao Jian
• Executive Vice Chairman: Marco Tronchetti Provera
• Chief Executive Officer: Andrea Casaluci
• Directors: Chen Aihua, Zhang Haitao, Chen Qian, Alberto Bradanini (Independent), Michele Carpinelli (Independent), Domenico De Sole (Independent), Fan Xiaohua (Independent), Marisa Pappalardo (Independent), Grace Tang (Independent), Roberto Diacetti (Independent), Paola Boromei (Independent), Giovanni Lo Storto (Independent).
• Secretary of the Board: Alberto Bastanzio

Board Committees

• Audit, Risk and Corporate Governance Committee: Fan Xiaohua (Chairman), Giovanni Lo Storto, Roberto Diacetti, Michele Carpinelli, Chen Aihua.
• Remuneration Committee: Grace Tang (Chairman), Michele Carpinelli, Paola Boromei, Alberto Bradanini, Chen Aihua.
• Nominations and Successions Committee: Marco Tronchetti Provera (Chairman), Domenico De Sole, Chen Aihua, Zhang Haitao.
• Strategies Committee: Marco Tronchetti Provera (Chairman), Jiao Jian, Andrea Casaluci, Domenico De Sole, Alberto Bradanini, Roberto Diacetti, Chen Qian, Zhang Haitao.
• Sustainability Committee: Marco Tronchetti Provera (Chairman), Jiao Jian, Andrea Casaluci, Giovanni Lo Storto.
• Committee for Related Party Transactions: Marisa Pappalardo (Chairman), Giovanni Lo Storto, Michele Carpinelli.

Corporate General Management

• Corporate General Manager: Francesco Tanzi

Subsidiaries, Associates, Joint Ventures and Revenue %

The group includes 86 legal entities. Significant subsidiaries include:

Subsidiaries (Wholly Owned 100% unless stated)

• Pirelli Tyre S.p.A. (Italy): 100% owned.
• Pirelli Deutschland GmbH (Germany): 100% owned.
• Pirelli Tyre Co. Ltd. (China): 90% Group interest.
• Pirelli Neumaticos S.A. de C.V. (Mexico): 100% owned.
• Pirelli Pneus Ltda. (Brazil): 100% owned.
• Pirelli Tire LLC (USA): 100% owned.
• Pirelli UK Tyres Ltd. (UK): 100% owned.
• S.C. Pirelli Tyres Romania S.r.l. (Romania): 100% owned.
• Limited Liability Company “Pirelli Tyre Russia” (Russia): 65% Group interest.
• Pirelli Tyre (Jiaozuo) Co., Ltd. (China): 80% Group interest.

Joint Ventures

• Xushen Tyre (Shanghai) Co., Ltd.: 49% stake. Owns a Consumer tyre manufacturing plant in China.
• PT Evoluzione Tyres (Indonesia): 63.04% stake. Operates in motorcycle tyre production.
• Middle East and North Africa Tyre Company: 25% stake. Incorporated in 2024 in Saudi Arabia.

Associates

• Eurostazioni S.p.A.: 32.71% holding.
• Corimav (Consortium for Research into Advanced Materials): 100% holding (classified as associate due to governance).
• Fenice S.r.l.: Associated company.

Physical Properties (Offices, Plants, Factories, etc.)

Pirelli operates a global industrial footprint consisting of 18 production plants located in 12 countries.

Key Manufacturing Locations:

• Italy: Settimo Torinese, Bollate.
• Germany: Breuberg.
• Romania: Slatina.
• United Kingdom: Burton-on-Trent, Carlisle.
• USA: Rome (Georgia).
• Mexico: Silao.
• Brazil: Campinas, Feira de Santana.
• Argentina: Merlo.
• China: Yanzhou, Jiaozuo, Shenzhou (JV).
• Turkey: Izmit.
• Russia: Voronezh, Kirov.
• Indonesia: Subang (JV).

Other Properties:

• Headquarters: Milan, Italy.
• Virtual Development Centers: 3 centers located in Italy, Germany, and China.
• R&D Centers: 12 technology centers worldwide.
• Warehouses: New leases in 2024 included a warehouse in Romania and two in Canada.

Segment-wise Performance

The company reports under a single operating segment: Consumer Activities.

Consumer Segment Performance (2024):

• Net Sales: 6,773.3 million euro.
• Sales Growth: +1.9% YoY.
• EBIT Adjusted: 1,060.5 million euro.
• EBIT Adjusted Margin: 15.7% (up from 15.1% in 2023).

Sub-Segment Performance Indicators:

• Car ≥18” Volumes: +5% growth (market +4%).
• Car ≤17” Volumes: -4% reduction (market stable).
• High Value Revenues: 76% of total revenues.
• Original Equipment Channel: -1% volume performance.
• Replacement Channel: +2% volume performance.

Founders

Pirelli & C. S.p.A. was founded in 1872. The historical founder was Giovanni Battista Pirelli, who established the company in Milan to produce elastic rubber items.

Shareholding Pattern

As of the date of the report, the share capital amounts to 1,904,374,935.66 euro divided into 1,000,000,000 ordinary shares.

Significant Shareholdings (Voting Rights > 3%):

• Marco Polo International Italy S.r.l.: 37.015% (Indirectly controlled by Sinochem Holdings Corporation Ltd).
• Camfin S.p.A.: 14.825% (Controlled by Marco Tronchetti Provera).
• Camfin Alternative Assets S.r.l.: 7.878% (Controlled by Marco Tronchetti Provera).
• Longmarch Holding S.r.l.: 3.679% (Controlled by Marco Tronchetti Provera).

Total Marco Tronchetti Provera Indirect Holdings: 26.382% (Aggregated through Camfin, Longmarch, and Camfin Alternative Assets).

Parent

The company is not subject to the unilateral control of any entity pursuant to IFRS 10. The issuance of the Golden Power Prime Ministerial Decree resulted in the loss of unilateral control by Marco Polo International Italy S.r.l. (and consequently Sinochem) over Pirelli.

Investments and Capital Expenditure Plans

2024 Expenditure:

• Investments in Property, Plant, and Equipment and Intangible Assets (CapEx): 414.9 million euro.
• CapEx as % of Revenues: 6.1%.

Investment Priorities:

• High Value Activities: Investments were mainly aimed at High Value activities.
• Technology Upgrades: Constant technological upgrading of factories.
• Energy Efficiency: Projects to improve energy efficiency and electrify vulcanisation presses (euro 27.1 million for electrification in 2024).
• Digitalisation: Investments in application software for digitisation programmes (euro 23.5 million increase in 2024).

Future Plans (2025 Outlook):

• Planned Investments: Approximately 420 million euro (~6% of revenues).

Future Strategy

Pirelli’s strategy focuses on transforming challenges into opportunities for growth, resilience, and competitiveness through the “Eco-Safety Design” approach.

Strategic Pillars:

• Climate: Acceleration towards Net Zero by 2040.
• Product: Performance and innovative materials.
• Nature: Redefining interactions between business and natural capital.
• People: Safety first and talent development.
• Supply Chain: Responsible management and decarbonisation.

Market Focus:

• High Value: Continued strengthening in the High Value segment (Car ≥18”).
• Electrification: Leveraging the Elect technology portfolio (over 810 homologations) to serve the EV market.
• Connectivity: Development of CYBER™ Tyre technologies with sensors for real-time data.

Key Initiatives:

• Efficiency Plan: A strengthened efficiency plan estimated at approximately 150 million euro for 2025.
• Innovation: Joint development agreement with Bosch for software-based solutions.
• Acquisition: Preliminary agreement to acquire CTS (Comfort Tyres Service) in Sweden to strengthen High Value presence in Northern Europe.

Competitive Landscape

Pirelli operates in a competitive market characterized by numerous global players. The 2025-2027 Long Term Incentive (LTI) Plan identifies a specific panel of TIER 1 peers for relative Total Shareholder Return (TSR) comparison.

Explicitly Named Peers:

• Continental
• Michelin
• Nokian
• Goodyear
• Bridgestone

The report also mentions Prometeon Tyre Group, a former industrial segment now separate, with which Pirelli maintains commercial relations (e.g., license agreements).

Key Strengths

• High Value Leadership: 76% of revenues come from High Value products, with leadership positions in Prestige and Premium segments.
• Technological Innovation: 4.3% of revenues invested in R&D, with 5.3% of High Value revenues dedicated to High Value R&D.
• Homologation Portfolio: A massive portfolio of over 810 EV homologations and over 300 new technical homologations in 2024 alone.
• Brand Power: A globally recognized brand with over 150 years of history and strong association with motorsport (Formula One).
• Sustainability Leadership: Validation of Net Zero 2040 targets by SBTi; Top 1% ranking in S&P Global Sustainability Yearbook.
• Solid Financials: Strong cash generation (533.9 million euro before dividends) and a liquidity margin of 3.2 billion euro covering maturities until 2029.

Key Challenges and Risks

External Risks

• Macroeconomic Outlook: Global growth remains moderate; potential trade policies and tariffs (especially US tariffs) create uncertainty.
• Geopolitical Risks: Tensions in the Middle East and Russia-Ukraine war; potential worsening of US-China relations affecting logistics and prices.
• Regulatory Risks: Changes in regulations, particularly in the automotive sector (e.g., Euro 7, deforestation regulations EUDR).

Strategic Risks

• Raw Materials: Price volatility of natural rubber, synthetic rubber, and oil-related materials.
• Exchange Rates: Exposure to volatility in currencies of emerging countries (e.g., Brazilian Real, Turkish Lira).
• Competition: Intensification of competition in the sector.

Operational Risks

• Cyber Security: Risk of cyber attacks affecting business continuity or data confidentiality.
• Supply Chain: Potential disruptions or slowdowns in the supply of raw materials or semi-conductors.
• Climate Change: Physical risks to plants from extreme weather and transition risks related to carbon pricing.

Conclusion and Strategic Outlook

Pirelli & C. S.p.A. closed 2024 with a robust performance that highlighted the resilience and effectiveness of its High Value strategy. By focusing on premium segments, technological innovation through Eco-Safety Design, and a rigorous commitment to sustainability, the company has managed to grow revenues and margins despite a complex geopolitical and macroeconomic environment.

The strategic outlook for 2025 and beyond is centered on continuity and adaptation. Pirelli aims to consolidate its leadership in the EV market, leverage digital connectivity through Cyber™ Tyre, and execute its decarbonisation roadmap towards Net Zero by 2040. Financially, the company targets stable growth, improved profitability (EBIT margin ~16%), and continued deleveraging. While risks related to trade tariffs and raw material volatility persist, Pirelli’s solid liquidity position and strategic flexibility position it to navigate future challenges effectively.

Official Site: https://www.pirelli.com

Frequently Asked Questions

1. What was Pirelli’s total revenue in 2024? In 2024, Pirelli reported total revenues of 6,773.3 million euro, representing a growth of +1.9% compared to 2023.

2. What is Pirelli’s High Value strategy? Pirelli’s High Value strategy focuses on the development and production of tyres with high technological content, specifically those with rim diameters of 18 inches or more, Specialties, and Premium Motorcycle tyres. In 2024, High Value products accounted for 76% of total revenues.

3. What are Pirelli’s sustainability targets? Pirelli aims to achieve Net Zero emissions by 2040. Intermediate targets include reducing absolute Scope 1 and 2 greenhouse gas emissions by 80% by 2030 compared to 2018. These targets have been validated by the Science Based Targets initiative (SBTi).

4. How many manufacturing plants does Pirelli operate? Pirelli operates 18 tyre production plants located in 12 countries around the world.

5. Who are Pirelli’s main competitors? Pirelli identifies its TIER 1 peers for relative performance comparison as Continental, Michelin, Nokian, Goodyear, and Bridgestone.

Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.