Brembo posted Q1 2026 net profit of €56.9 million ($66.6 million), an 11.2% year-on-year gain, and raised its full-year revenue guidance to +3% on a constant-exchange-rate basis. The Italian braking specialist reported the results on May 7 alongside an update on its Sensify intelligent braking platform, which entered series production with a global automaker earlier in May. Consolidated revenues totaled €937.4 million ($1.10 billion), down 2.1% on a reported basis but up 1.9% at constant exchange rates.
Highlights
- Net profit: €56.9 million ($66.6 million), up 11.2% from €51.1 million in Q1 2025
- EBITDA margin: 16.5%, a 50-basis-point improvement on Q1 2025
- Net financial debt: €692.9 million ($811 million), down €26.3 million since year-end 2025
- 2026 guidance: Revenues now seen +3% at constant exchange rates, up from prior guidance of in line with FY 2025
Margin Expansion Despite Revenue Decline
EBITDA reached €154.7 million ($181 million) in the quarter, a 0.9% increase from €153.3 million in Q1 2025. EBIT rose 3.0% to €85.9 million ($100.5 million), lifting the EBIT margin to 9.2% from 8.7%. The cost of sales and other net operating costs fell to 62.0% of revenue from 63.5% a year earlier, more than offsetting an increase in personnel expenses to 21.9% of sales from 20.6%.
The improvement in profitability against a revenue decline reflects favorable input cost dynamics — raw materials, consumables and goods fell 5.6% to €399.7 million — and a lower effective tax rate of 27.1%, down from 28.7% in Q1 2025.
Segment and Geographic Performance
By application, the passenger car segment declined 3.4% and commercial vehicles fell 1.1%. Motorcycle applications grew 6.7%, while racing applications fell 4.0%. Geographically, China revenue dropped 14.7% on a reported basis (-9.8% at constant exchange rates), the steepest decline in the portfolio. India grew 7.1% on a reported basis and 25.5% at constant exchange rates, while France rose 12.8% and South America gained 8.5%. North American sales fell 3.2% on a reported basis but grew 6.6% at constant exchange rates.
Net financial debt of €692.9 million ($811 million) was down €85.7 million year-on-year and €26.3 million from year-end 2025, with net investments in the quarter totaling €72.1 million.
Sensify Reaches Series Production
Executive Chairman Matteo Tiraboschi tied the guidance upgrade to commercial momentum on Sensify, Brembo’s brake-by-wire platform that entered series production for an unnamed global manufacturer on May 4. “The first quarter of the year closed with solid results, despite a geopolitical and market context that remains complex. Margins are on the rise and cash generation further strengthens the Group’s financial structure. Looking ahead, we have announced important developments about Sensify, our intelligent braking platform: the start of series production for a leading global manufacturer and the signing of new contracts are paving the way for large-scale adoption in the coming years.“
The platform uses a fluid-free architecture that distributes braking control at the wheel, eliminating hydraulic circuits and centralized actuation. Brembo expects Sensify deployment to reach hundreds of thousands of vehicles per year as additional customer contracts ramp.
The production launch positions Brembo among the first Western tier-one suppliers to commercialize software-defined braking at scale, alongside competing dry brake-by-wire programs from Bosch, ZF, BWI Group, and Hitachi Astemo. Industry roadmaps surveyed in 2024 generally targeted dry by-wire deployment between 2025 and 2028 — a timeline Brembo’s Q1 production milestone sits squarely within.
Updated 2026 Outlook
Brembo’s revised 2026 guidance calls for revenues +3% at constant exchange rates (previously: in line with FY 2025), an EBITDA margin of approximately 16.5%, capital expenditures of about €350 million, and net financial debt below €700 million. The April 29 Annual General Meeting approved a gross dividend of €0.30 per ordinary share, payable May 20, and confirmed Daniele Schillaci as CEO and Tiraboschi as Executive Chairman through the 2029 AGM.
Subscribe to The BRAKE Report. Get the Handbook free.
