Pirelli raises prices as part of Middle East crisis mitigation plan

MILAN, April 16 (Reuters) - ‌Italian premium tyremaker ​Pirelli ​said on Thursday it had activated a "mitigation plan" to limit the effects of the ‌ongoing Middle East crisis, which includes price increases ⁠and additional cost cuts.

Presenting its final full-year 2025 results, the company ‌said actions taken, along ‌with the expectation of a progressive normalisation of input costs and raw material volatility in the second ​half, allowed it to confirm forecasts for this year, although with an adjusted operating income (EBIT) at ⁠the lower end of guidance.

• Full-year forecasts Pirelli provided in February included an ​adjusted EBIT margin at around 16%, a slight improvement versus 2025

• On Thursday Pirelli did ​not provide details about price ‌increases it is implementing

• Analysts at Bank of America said in a report earlier ⁠on Thursday, after attending a pre-close call on Wednesday with Pirelli's investor relation team, that the tyremaker's price actions ⁠would have full impact from May.

• Price cuts and cost reductions ​are expected to partly offset raw material cost inflation from the Middle East crisis, the net impact of which the company ‌currently estimates at around 20 million euros ($23.5 million) on 2026 results, Bank of America ‌said.

• Bank of America added a 2026 adjusted EBIT ⁠at the lower end ‌of Pirelli's guidance ​would amount to around 1.07 billion euros.

($1 = 0.8494 euros)

(Reporting by Giulio Piovaccari. Editing by Jane ‌Merriman)

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