Brembo Forecasts Stagnant 2026 Revenue as Shares Slide
Brembo warned of flat or lower 2026 growth due to the Middle East conflict. Shares fell 9 percent as the firm cited rising energy and supply chain issues.
The premium brake manufacturer Brembo S.p.A., based in Italy, has issued a cautious outlook for 2026, projecting no growth in revenue or core profit margins. The company warned that these figures could decline further if the ongoing conflict in the Middle East persists, a development that triggered a sharp decline in its share price.
Executive Chairman Matteo Tiraboschi noted that the company had previously anticipated growth between 3% and 5% for the coming year. However, the geopolitical situation necessitated a more conservative approach.
"But we saw the war in the Middle East was continuing, so we decided do be more prudent," he said.
The regional instability, marked by strikes involving the United States, Israel, and Iran, has disrupted global trade and shipping routes while driving up the costs of energy and essential commodities. These disruptions pose a significant risk to the automotive supply chain and consumer demand in high-margin markets.
Brembo serves as a key supplier for luxury and electric vehicle manufacturers, including Ferrari N.V., Maserati, Tesla, Inc., and BMW. These brands often rely on Middle Eastern markets for a substantial portion of their high-end sales, making them vulnerable to regional volatility.
"Clearly, if this war goes on beyond, say, Easter, thats not going to be anymore a problem of a more or less flat guidance for Brembo. It would become a huge problem for all," Tiraboschi said.
Following the announcement, shares in the company traded on the Milan exchange dropped by as much as 11%, eventually trading down 8.8% by late afternoon. Tiraboschi emphasized that a long-term conflict would lead to severe commodity shortages and uncontrollable energy expenses.
"A protracted conflict would mean a hard shortage of commodities and energy costs completely out of control," he added.
To mitigate these risks, the group is drawing on lessons learned during the pandemic by securing logistics services and increasing inventories of strategic materials.
"We have already secured delivery slots and logistics services of a certain kind, we have increased our stocks of those materials that are most strategic for us," he said.
In terms of recent financial performance, the Bergamo-based group reported that 2025 revenues fell nearly 4% to 3.70 billion euros ($4.26 billion). The EBITDA margin also contracted to 16.5% from 17.2% the previous year. Net profit saw a 20% decline to 209 million euros, though the company still plans to issue a dividend of 0.30 euro per share.
