Operator

Ladies and gentlemen, welcome to Pirelli's Conference Call in which Pirelli top management will present Company's First Quarter 2026 Results.

A live webcast of the event and the presentation slides are available in the Investor Relations section of the Pirelli website. [Operator Instructions]

Now I would like to introduce Mr. Marco Tronchetti Provera. Please go ahead, sir.

Marco Provera
Executive Vice Chairman

Thank you, and good evening, ladies and gentlemen. The results for the First Quarter of 2026 confirmed the resilience of Pirelli business model in a highly challenging environment.

In line with the strategic priorities, we consolidated the position in the high-value segment, leveraging our brand strength, technological leadership and a broadened distinct in product portfolio. By doing so, we gained market share in both the Car and Motorcycle business. Profitability remains among the best in the industry, the highest among Tier 1 players with adjusted EBIT margin of 16% despite the negative impact of exchange rates, inflation and U.S. tariffs.

Thanks to the rigorous financial management, we closed the first quarter with a cash flow trend in line with last year and with the usual seasonality of the business. External environment remains complex and characterized by the high uncertainty. The crisis in the Middle East is a significant macroeconomic risk with growing pressures on input cost inflation. The closure of the