MILAN, Italy ꟷ TIremaker Pirelli said on Wednesday it expects revenue to be flat to slightly higher this year, and the company proposed a dividend hike, as key investors remain locked in a governance dispute that could limit the group’s US expansion.
The Italian company gave guidance for revenue to be 6.7 billion to 6.9 billion euros ($7.91 billion to $8.14 billion) this year, versus 6.78 billion euros in 2025, which was in line with Pirelli’s forecasts.
It also gave guidance that margin on adjusted earnings before interest and tax would be around 16 percent, “slightly improving” over last year.
Pirelli proposed an overall dividend of 0.34 euros per share, including an extraordinary 0.10 euro component due to “positive results and decreased financial leverage.”
The company has been at the center of a protracted governance row between its two largest shareholders, Chinese state-owned Sinochem with 34 percent and Camfin, the investment vehicle of Executive Vice President Marco Tronchetti Provera, with 25.3 percent.
Tensions have intensified ahead of new US rules curbing the use of Chinese technologies in the automotive sector. Camfin — and Pirelli itself — have argued that Sinochem’s ownership position complicated Pirelli’s expansion plans in the United States, a key market for its premium tire business.
Pirelli’s board this year rejected a Sinochem proposal aimed at solving governance issues. It envisaged spinning off activities that would fall under the new US regulation.
Sinochem said the proposal was “well-founded” and “in line with the best international practice.”
The dispute has influenced board appointments, strategy and oversight at the Italian tiremaker in recent years and is now expected to trigger further intervention by the Italian government on Pirelli’s governance rules.