Piaggio (PIA) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw a modest increase in global vehicle volumes, reversing previous declines, with India showing strong growth and APAC performing as expected, despite persistent geopolitical uncertainty.

• Net sales declined 7.8% year-over-year to €341.7m, mainly due to adverse forex effects, not underlying sales or promotions.

• Gross margin improved to 31.6%, with record-low Q1 cash absorption and peak-level margins achieved without price increases.

• EBITDA margin reached 16.8%, the second-highest ever, supported by pricing discipline and cost efficiencies.

• April 2026 started Q2 with group volumes growing close to 20% year-over-year, with positive contributions from all regions.

Financial highlights

• Net sales: €341.7m, down 7.8% year-over-year at current rates; €364.9m at constant rates, down 1.6%.

• Gross margin: 31.6% (up 1.0 p.p. year-over-year).

• EBITDA: €57.5m, down 7.3% year-over-year; EBITDA margin 16.8%.

• EBIT: €19.9m, down 18.6% year-over-year; EBIT margin 5.8%.

• Net income: €5.3m, down 39.5% year-over-year.

• Cash flow absorption in Q1 2026 was €19 million, significantly improved from €58 million in Q1 2025, reflecting better inventory and receivables management.

• Net financial debt: €597M, stable year-over-year.

• Capex: €24.2M (down from €39.4M).

Outlook and guidance

• Q2 2026 is off to a strong start, with April volumes up nearly 20% year-over-year and supportive demand trends across all geographies.

• Management expects the positive trend in India to continue, though Q2 is seasonally weaker.

• Expected IEEPA tariff refunds of around $3m in coming quarters.

• No price increases are planned for 2026; focus remains on cost containment to preserve margins.

• Strategy aims to consolidate sector leadership and maintain ESG commitments despite geopolitical and economic uncertainty.