Pirelli hikes prices to offset Middle East crisis impact

The premium tyremaker PIRELLI & C SPA, headquartered in Italy, has initiated a comprehensive mitigation strategy to address the financial impact of the ongoing crisis in the Middle East. The plan focuses on implementing price increases and further reducing operational costs to navigate market instability. During the release of its final full-year financial results, the manufacturer stated that these measures, alongside the expected stabilization of raw material costs in the latter half of the year, have allowed it to maintain its annual targets. However, the company cautioned that its adjusted operating income (EBIT) is likely to fall at the lower end of its projected range. Previous forecasts issued in February anticipated an adjusted EBIT margin of roughly 16%, a slight increase compared to the 2025 fiscal year. While specific details regarding the price hikes were not provided by the company, a report from BANK OF AMERICA CORP noted that these adjustments are expected to be fully realized by May. The bank's analysts estimated that the net impact of the Middle East crisis on 2026 results would be approximately 20 million euros ($23.5 million), with price and cost actions serving to partially mitigate raw material inflation. Under the current guidance, the lower end of the EBIT forecast would represent approximately 1.07 billion euros.