Italian premium tire manufacturer Pirelli announced on Thursday the initiation of a "mitigation plan" designed to limit the impact of the ongoing Middle East crisis. The strategy involves increasing product prices and implementing further cost reductions.

The measures combine price hikes with cost-cutting initiatives. While announcing its final full-year results for 2025, Pirelli stated that actions already taken, coupled with an expectation that input costs and raw material volatility will gradually normalize in the second half of the year, allow it to confirm its current-year forecasts. However, adjusted earnings before interest and taxes (EBIT) are expected to be at the lower end of the provided guidance range.

The full-year forecast, initially provided in February, targets an adjusted EBIT margin of approximately 16%, representing a slight improvement compared to 2025. Pirelli did not disclose specific details regarding the price increases currently being implemented.

The full effect of the price adjustments is anticipated to be realized starting in May. These increases are expected to partially offset inflationary pressures on raw material costs stemming from the Middle East crisis. The company currently estimates the net impact of this crisis on its 2026 financial performance to be approximately 20 million euros.

Pirelli's projected adjusted EBIT for 2026 is forecast to be around 1.07 billion euros, situated at the lower end of its guidance. In response to the company's crisis management measures, Pirelli's share price closed approximately 1.94% higher on the Italian stock market.