Piaggio (PIA) Q4 2025 earnings summary

Executive summary

• Net sales declined 11.7% year-over-year to €1,501.9m, mainly due to demand, FX headwinds, and global macroeconomic challenges, but gross margin improved due to efficient operations and strong brand positioning.

• EBITDA margin reached 16.7%, the second-highest on record, despite market challenges and lower sales.

• Net income dropped 49.4% year-over-year to €34.0m, reflecting lower sales and higher depreciation.

• Maintained long-term strategy focused on internationalization, diversification, innovation, sustainability, and brand strength.

• Launched new models across all brands, including Vespa and Aprilia, supporting brand strength and visibility.

Financial highlights

• Gross margin improved to 30.5% in 2025, up from 29.2% in 2024, despite lower sales.

• EBITDA decreased by 12.5% to €250.8m, with margin stable at 16.7%.

• EBIT fell 31.5% to €101.2m, and net income margin declined from 4.0% to 2.3%.

• Net debt increased for the third consecutive year, reaching €578m, mainly due to reduced payables and investments.

• CapEx was €140.6m, down from €182.7m in 2024, reflecting ongoing investment in new products and regulatory compliance.

Outlook and guidance

• Consensus for 2026 targets mid-single digit revenue growth and single-digit EBITDA growth, with management confirming alignment.

• Free cash flow expected to materially improve in 2026 as major one-off investments conclude.

• Positive momentum in India’s 2-wheelers and light commercial vehicles supports a favorable 2026 outlook.

• Healthy liquidity profile with gross cash of ~€400m ensures coverage of upcoming maturities.

• No change in pricing strategy; no intention to engage in a price war.