Piaggio (PIA) Q3 2025 earnings summary

Executive summary

• Net sales for the first nine months of 2025 declined 11.3% year-over-year to €1,204.4 million, mainly due to demand, FX headwinds, and external macroeconomic pressures.

• Despite lower revenue, gross margin reached a record 30.4%, up from 29.7% year-over-year, and EBITDA margin was 16.7%, the second highest ever.

• Net income fell 49.1% to €31.7 million, reflecting lower operating income, higher depreciation, and external factors such as US tariffs and commodity costs.

• Maintained a strategy of prioritizing value over volume, refusing to engage in price wars despite increased competition from low-cost Asian brands.

• Continued significant investments in factories, products, technology, robotics, and electromobility.

Financial highlights

• Revenue declined by EUR 153 million year-over-year for the first nine months, with net sales at €1,204.4 million.

• Gross margin improved to 30.4%, a record high, up 0.8 p.p. year-over-year.

• EBITDA decreased 14.2% to €201 million, with margin at 16.7%.

• Net debt reduced to €528 million from €534 million at December 2024, with free cash flow to equity at €36 million.

• Capital expenditure totaled €102.5 million, down from €117.4 million year-over-year.

Outlook and guidance

• Guidance for 2025 remains highly dependent on geopolitical and economic stability to support consumer spending.

• Positive cash generation and inventory reduction position the group for improved performance.

• Recovery momentum noted in Q3, especially in India and Asia Pacific.

• CapEx expected around EUR 140–145 million in coming years, focused on new products and process improvements.

• Net debt expected to remain stable by year-end.