November 6, 2025 – Italian premium brake manufacturer Brembo (BRBI.MI) said on Thursday that its 2025 revenue is expected to decline by 2%, revising down its previous guidance which anticipated revenue to be in line with 2024. The adjustment comes amid an unstable geopolitical and macroeconomic environment affecting global automotive markets.

Despite the revenue downgrade, Brembo confirmed its core profit margin target of more than 16%, following a strong third-quarter performance where EBITDA margin reached 17.8%.

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Third-Quarter Performance

From July to September 2025, Brembo reported revenue of €909 million ($1.1 billion), a 1.5% decline compared with the same period last year. At the same time, earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 8.2% to €161.9 million, reflecting the company’s focus on operational efficiency and premium product pricing.

“Our results show the group’s solidity in facing the current challenging phase of the automotive industry,” said Executive Chairman Matteo Tiraboschi.

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Market Reaction

Following the results, Brembo shares surged as much as 9.5%, settling up 7.8% by 1250 GMT, on track for the company’s largest one-day gain since May 2022. The strong market response highlights investor confidence in Brembo’s ability to maintain profitability despite revenue headwinds.

Analysts note that Brembo’s continued focus on premium braking systems, innovation, and efficiency allows the company to preserve margins even in a volatile economic environment.

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Outlook and Strategic Focus

Brembo’s downward revision in revenue reflects broader challenges in the global automotive sector, including geopolitical tensions, supply chain disruptions, and fluctuating consumer demand. However, the company remains confident in its long-term strategy:

• Maintaining premium product positioning
• Investing in innovation and R&D for advanced braking technologies
• Controlling operational costs to preserve profit margins

By sticking to its core margin target of over 16%, Brembo signals resilience in a competitive industry while ensuring sustainable profitability.