Piaggio (PIA) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales declined 13.4% year-over-year to €370.7 million, reflecting demand headwinds in Western countries and APAC, and challenging macroeconomic and geopolitical conditions.

• Despite lower sales, gross margin improved to 30.5%, a record level, driven by improved processes and productivity.

• EBITDA margin reached 16.7%, the second-highest on record, while net income fell 53.3% to €8.7 million.

• Cash flow improved, with lower seasonal cash burn and inventory value reduced by EUR 20 million year-over-year.

• Continued investment in iconic brands, R&D, and manufacturing sites, with a medium/long-term product-driven strategy.

Financial highlights

• Net sales: €370.7 million, down 13.4% year-over-year.

• Gross margin: €113.2 million (30.5% of sales), up 0.1 p.p.

• EBITDA: €62 million (16.7% margin), down 17.7% year-over-year.

• Net income: €8.7 million (2.4% of sales), down 53.3% year-over-year.

• Net financial position: Net debt at €592.8 million, with gross cash at ~€384 million.

Outlook and guidance

• No significant sales rebound expected in Q2 2025; some improvement anticipated in the second half as markets stabilize.

• Full-year EBITDA expected to reach approximately EUR 290 million, assuming gradual market recovery.

• Management maintains flexibility to adjust investments from Q2 onwards in response to market dynamics.

• Capital expenditure will remain conservative and in line with prior year unless market stability improves.

• Focus remains on cash management, inventory reduction, and maintaining gross margin levels.