Piaggio (PIA) Q2 2025 earnings summary

Executive summary

• Gross margin reached up to 34.4% in Q2 2025, with EBITDA margin as high as 17.7%, despite a 13.9% year-over-year revenue decline and challenging global conditions.

• Net sales declined to €852.5m in H1 2025, with net income falling 42.2% to €30.1m due to lower sales and higher depreciation.

• Net financial position and net debt remained stable versus December 2024, reflecting effective cost and margin management.

• Brand equity and premium positioning were maintained, avoiding price wars and focusing on differentiation.

• High levels of investment continued, especially in product development and Italian production facilities.

Financial highlights

• Gross margin for Q2 2025 was 34.4%, and for H1 2025 was 30.4%, both among the best historically.

• EBITDA margin reached up to 17.7% in Q2 and 17.3% in H1 2025, supported by pricing discipline and cost efficiencies.

• EBIT dropped 32.3% to €70.5m; net income margin decreased to 3.5%.

• Net debt stable at €535m, with strong liquidity and no significant short-term maturities.

• Vehicles sold worldwide: 238,400, down 11.7% year-over-year.

Outlook and guidance

• Management expects possible sequential recovery in European market share in Q3 as Euro 5 stocking ends.

• Revenue growth in India is anticipated in H2 2025, supported by new product launches.

• No significant logistic cost reductions expected by year-end; costs projected to remain at H1 levels due to ongoing geopolitical disruptions.

• Guidance for 2025 remains closely tied to geopolitical and economic stability, with continued investment in brands and manufacturing.

• Company maintains flexibility in capital expenditure to adapt to market dynamics.