The Middle East war has seen various manufacturers affected. Italian tyre maker Pirelli is one of these companies. It has activated a “mitigation plan” to limit the ?effects of the ongoing Middle East crisis, ?which includes price increases and additional cost cuts. Though Pirelli did not provide details about ?the price increases it is implementing.
Presenting its final full-year 2025 results, the company said actions taken, along with ?the expectation of a progressive normalisation of input ?costs and raw material volatility in the ?second half, allowed it to confirm forecasts for this ?year, although with an adjusted operating income (EBIT) at the ?lower end of guidance.
Full-year forecasts Pirelli provided in February included an adjusted EBIT margin at around 16%, a slight improvement versus ?2025
Price cuts and ?cost reductions ?are expected to partly offset raw material cost inflation from the Middle East ?crisis, the net impact of which the ?company ?currently estimates at around EUR20 million on 2026 results.
Pirelli says it has already activated a mitigation plan which entails:
– price increases;
– containment of additional costs compared with the existing efficiency plan;
– a review of logistics flows and temporary increases of back-up inventories of critical raw materials to ensure continuity of production;
– attentive management of working capital.
In a statement it issued, Pirelli said, “The evolution of the Middle East crisis remains uncertain in terms of its duration and potential impact. The tensions in the area are translating into great pressure on the energy markets and raw materials, with significant price increases of oil and gas. This scenario, if prolonged, will translate into an increase in inflation with potential impacts of the performance of the economy and demand.”
Pirelli’s exposure to the area is limited, equal to about 1% of group revenues, and immediately implemented a series of actions aimed at guaranteeing the safety of its people in loco, reinforcing its cooperation with local partners and optimising logistics flows.