Italy's Brembo raises revenue outlook, eyes M&A as shares surge

Thursday 07 May 2026 - 17:15

Italian braking systems manufacturer Brembo has upgraded its financial outlook for the year, citing stronger-than-expected resilience despite recent global supply chain disruptions linked to geopolitical tensions. The company now anticipates a 3% increase in annual revenue at constant exchange rates, a notable improvement compared to its previous forecast of stable growth.

The revised guidance follows challenges related to disruptions in raw material supply and energy markets, which were initially affected by conflict-related tensions in the Middle East. Despite these pressures, Brembo managed to stabilize its operations by rapidly diversifying suppliers and securing alternative sources of key inputs such as aluminum.

In the first quarter, the company reported a modest rise in core profitability, with EBITDA reaching approximately €154.7 million, marking a slight year-on-year increase. Market response was positive, with Brembo’s shares recording a significant surge following the announcement.

Executive leadership indicated that earlier forecasts had been overly cautious and emphasized the company’s ability to adapt quickly to changing market conditions. Management also highlighted ongoing investments in supply chain resilience and technological innovation.

A key area of strategic focus is the company’s Sensify intelligent braking system, which is moving toward large-scale industrial production. Brembo expects this technology to play an increasingly important role from 2027 onward, particularly through partnerships with major global automotive manufacturers and new commercial agreements recently secured.

Looking ahead, the company is also exploring potential mergers and acquisitions as part of its long-term growth strategy, aiming to strengthen its position in the evolving automotive technology market.