Pirelli said it achieved its financial goals for 2025, reporting higher profit and outlining a dividend proposal while setting out a 2026 budget aimed at steady revenues and margins.

The Italian tyre maker said net profit for the year rose 5.9% to €530.7m ($626.52m).

The board plans to propose a total dividend of €0.34 per share, which includes an extraordinary component of €0.10.

Full year revenue reached €6.77bn, at the upper end of guidance, with organic growth of 4.2%.

Adjusted EBIT rose 2.0% to €1.08bn, taking the adjusted EBIT margin to 16% from 15.7% a year earlier. Net profit compared with €501.1m in 2024.

Net cash flow before dividends totalled €1.07bn, or €0.58bn excluding the €496.5m impact from bond conversion, exceeding the roughly €0.55bn target.

High value products represented 79% of sales, up from 76% in 2024.

In the fourth quarter, revenue was €1.58bn.

Organic growth was 6.1% excluding currency of minus 5.3% and Däckia of minus 1.3%.

Including these effects, revenue declined 0.5% year-on-year.

Adjusted EBIT was €245.9m versus €244.6m in the fourth quarter of 2024, with margin at 15.6% from 15.4%.

Net profit was €130.1m compared with €130m.

In its statement, the company said: “In a challenging context, characterised by geopolitical and commercial tensions and marked forex volatility, Pirelli closed 2025 with better results compared with the previous year and in line with the targets announced to the market, confirming the efficacy of the business model and key programmes of the industrial plan.”

For 2026, the group targets revenue of €6.70bn to €6.90bn, an adjusted EBIT margin of about 16%, and net cash flow before dividends of about €0.50bn.

It also expects a year-end net financial position of about minus €1.20bn, with net financial position to adjusted EBITDA around 0.75x by 2026 year end overall.