Pirelli & C. SpA’s first-half results point to continued resilience in premium and larger-rim-diameter tires, even as tire dealers contend with cautious consumer spending and uneven replacement demand.

Pirelli’s high-value car and motorcycle tire volumes increased 3.5% during the first six months of 2026, supported by both the original equipment and replacement channels. High-value products accounted for 82% of the company’s sales, up from 80% during the first half of 2025.

By contrast, Pirelli’s standard tire volumes fell 8% as the company continued to reduce its exposure to lower-margin products and channels, particularly in South America. The gains in high-value products offset that decline, leaving Pirelli’s total first-half tire volume flat.

The results mirror what Claudio Zanardo, CEO of Pirelli Tire North America Inc., recently told MTD about conditions in the North American passenger and light truck replacement market.

Zanardo says macroeconomic uncertainty and more cautious consumer spending created a challenging demand environment during the first half. However, the 18-inch-and-larger segment remained more resilient than the overall market.

“Our dealers and distributors continue to report solid demand for Pirelli products, supported by our strong positioning in the premium and performance segments,” Zanardo recently told MTD in an exclusive mid-year Q&A.

Pirelli expects North American replacement market conditions to improve during the second half, particularly for 18-inch-and-larger tires. The company also expects demand to remain divided between the high-value and standard segments, with premium products continuing to show greater resilience.

Pirelli’s growing original equipment portfolio provides another indication of the fitments that dealers will encounter as newer vehicles move into the replacement cycle.

The company secured approximately 200 new homologations with premium and prestige vehicle manufacturers during the first half. Ninety percent were for tires with rim diameters of 19 inches or larger, while 60% were developed for battery-electric vehicles or plug-in hybrids. Specialty tires represented 70% of the new homologations.

Pirelli also expanded its North American replacement portfolio during the first half with the introduction of the Scorpion AS 4, an all-season tire for crossovers, SUVs and pickup trucks.

The tire was developed specifically for North American driving conditions and is backed by a 70,000-mile treadwear warranty. Pirelli says the Scorpion AS 4 is designed to provide improved wet braking, handling, ride comfort, noise performance and mileage.

Pirelli generated first-half revenue of approximately $4.02 billion, down 0.1% from the same period in 2025. Excluding foreign exchange, hyperinflation accounting and changes in the company’s scope of consolidation, organic revenue increased 2.5%.

Price and product mix contributed 2.5% during the first half, reflecting improvements in both Pirelli’s product and regional mix.

Adjusted earnings before interest and taxes totaled approximately $642.3 million, compared with approximately $642.9 million during the first half of 2025. Pirelli’s adjusted EBIT margin remained at 16%.

Net profit increased 13.3% to $344.3 million, aided in part by lower financial charges.

Pirelli also generated $93.3 million in efficiencies during the period, reaching approximately 54% of its full-year target. The company attributed those gains primarily to product design initiatives and improved manufacturing productivity.

However, Pirelli says the Middle East crisis has increased expected costs for raw materials, energy and transportation. The company has responded with price increases and additional cost-containment measures, but did not identify the affected markets or products or disclose when the increases will take effect.

The results provide additional context for Pirelli’s proposed multiyear investment of approximately $1 billion to $1.2 billion in the United States.

Zanardo says the investment would support growth in the high-value segment, advanced tire technologies and Pirelli’s effort to produce more tires closer to the markets where they are sold. The company also is implementing automation and efficiency upgrades at its Rome, Ga., plant while continuing to use its Mexico operation to supply selected passenger and light truck tire lines throughout North America.

Pirelli has confirmed its full-year 2026 financial targets.