Piaggio Group reports resilient margins despite market headwinds in Q1
The Piaggio Group, maker of iconic powersports brands including Vespa, Aprilia, and Moto Guzzi, reported a resilient gross margin of 30.5% in the first quarter of 2025, despite a 13.4% decline in net sales amid global economic and geopolitical challenges.
Speaking on the results, CEO Michele Colaninno says, “The beginning of the year was once again marked by international markets seeking stability and ongoing macroeconomic and geopolitical complexity, which we continue to counter with a prudent management approach.”
Sales decline
Piaggio reported consolidated net sales of €370.7 million ($412.9 million USD) for Q1 2025, down from €428 million ($476.8 million USD) in the same period last year. Sales contracted across all major regions: EMEA & Americas (-17.2%), Asia Pacific (-10.5%), and India (-2.3%).
Vehicle shipments fell 11.3% to 106,800 units globally, compared to 120,300 in Q1 2024. The slowdown was partially attributed to the post-registration slump in Europe following the rollout of the “EURO 5+” emissions standard, which had pulled forward purchases into Q4 2024.
“Europe remains a highly competitive market, as it is still the largest globally by value,” says Colaninno. “Our strategy has been to maintain our pricing and avoid entering into aggressive discounting wars. While we support dealers with localized promotions when appropriate, we believe it would be a mistake to devalue our brand in an already soft market. Discounting doesn’t necessarily increase volumes, so preserving margin and continuing to invest in brand equity is the smarter long-term approach.
In Asia-Pacific (APAC), Piaggio is taking a similar stance. “We’re maintaining prices and continuing to invest, because we see strong medium- to long-term potential in that region,” the CEO comments. “The market remains difficult to predict, especially with recent U.S. tariff developments. Some customers in April moved early, anticipating price hikes, but the volume impact was limited and mostly psychological. If tariffs are implemented, we will adjust our commercial policies as needed, particularly in the mid-size motorcycle segment where the U.S. remains an important market for us.”
Margin management
Despite lower sales volumes, the company maintained a robust margin of €113.2 million (30.5% of net sales), nearly flat from 30.4% in Q1 2024. Colaninno attributes this resilience to disciplined cost controls, technology investment, and strategic pricing.
“We are not reducing prices,” Colaninno emphasizes. “Instead, we’re maintaining margins through operational efficiency and investment in brand equity.”
EBITDA dropped 17.7% to €62 million, and EBIT fell sharply by 41% to €24.4 million. Net profit stood at €8.7 million, down from €18.7 million a year earlier.
Brand performance
Two-wheeler sales totaled 78,700 units, with revenues of €283.9 million, down from €331.7 million in Q1 2024. Piaggio’s scooter lineup, particularly the updated Liberty and Medley models, performed well, as did the new Aprilia RS 457 and Moto Guzzi V85 motorcycles.
The company maintained its market share in key segments, holding 15.3% of the European scooter market and 29.9% in North America.
Sales of commercial vehicles dropped slightly to 28,000 units. However, South America and India showed signs of strength, especially in the electric three-wheeler category.
R&D and robotics
Piaggio Fast Forward (PFF), the group’s U.S.-based robotics subsidiary, continued to market its mobile following robots—Gita, Gita Mini, and the newly launched kilo. The kilo, capable of carrying 130 kg, leverages proprietary 4D radar and sensor technology and debuted in March.
PFF’s sensors also debuted on the new Moto Guzzi Stelvio, contributing to advanced rider assistance systems (ARAS) for enhanced safety.
Capital investment
Capital expenditure rose slightly to €39.4 million (+1.2%), reflecting continued investment in manufacturing, R&D, and new product development. Due to seasonal cash flow patterns and investment activities, net financial debt increased to €592.8 million, up from €534 million at year-end 2024.
Looking Ahead
Colaninno reiterated Piaggio’s long-term product-driven strategy, focused on combining innovation with operational discipline. “We will continue to carefully manage productivity while growing investments in our iconic brands, technology, and manufacturing.”
For U.S. dealers, Piaggio’s steady focus on margin protection, premium positioning, and new product launches offers a clear signal: the group is navigating headwinds by reinforcing brand value rather than sacrificing profitability.
Source: Piaggio Group
