The Bull Case For Pirelli & C (BIT:PIRC) Could Change Following Stronger Earnings and Margin Expansion

• Pirelli & C. S.p.A. recently announced earnings results for the nine months ended September 30, 2025, reporting sales of €5.20 billion and net income of €374.63 million, both up from the prior-year period.
• A key insight is that the company achieved higher basic earnings per share from continuing operations compared to last year, signaling a period of increased profitability.
• We’ll explore how Pirelli’s stronger earnings performance influences its investment narrative and the outlook for margin expansion.

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Pirelli & C Investment Narrative Recap

To be a Pirelli & C. S.p.A. shareholder, you need confidence in the company’s long-term focus on innovating premium and sustainable tires, even as cost and supply chain pressures persist. The recent nine-month earnings update shows modest sales growth and improved profitability, but it doesn’t substantially shift the main short-term catalyst, Pirelli’s push for higher margins through innovation, or the biggest ongoing risk from tariffs and currency swings. In short, the news confirms resilience but not a step-change in outlook.

Among Pirelli’s recent announcements, the September partnership with Aston Martin to introduce Cyber Tyre technology stands out. This move highlights the company’s commitment to advanced intelligent tires, supporting its strategy of reinforcing its leadership in high-value segments and potentially enhancing returns from leading-edge products, a key factor as margin expansion remains a top focus for investors.

On the other hand, investors should be aware that the company’s international footprint still leaves it exposed to risks from new trade barriers and shifting policies in North America...

Read the full narrative on Pirelli & C (it's free!)

Pirelli & C's narrative projects €7.2 billion revenue and €646.4 million earnings by 2028. This requires a 0.5% annual decline in revenue and a €147.5 million increase in earnings from €498.9 million currently.

Uncover how Pirelli & C's forecasts yield a €6.75 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided five fair value estimates for Pirelli ranging from €4.50 to €6.75 per share. While opinions differ widely, the recurring risk from tariffs and currency volatility could influence future performance and is a factor many should weigh before forming their own view.

Explore 5 other fair value estimates on Pirelli & C - why the stock might be worth 26% less than the current price!

Build Your Own Pirelli & C Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Pirelli & C research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Pirelli & C research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Pirelli & C's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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