Cie Generale des Etablissements Michelin SA

ML

Equity

ISIN FR001400AJ45 / Valor 119105381

Euronext - Euronext Paris (2025-11-21)

EUR 27.66+2.22%

Cie Generale des Etablissements Michelin SA
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About company

Cie Generale des Etablissements Michelin SA, commonly known as Michelin, is a global leader in tire manufacturing, renowned for its significant contributions to the automotive industry since its inception in 1900. Beyond its core business of producing a wide range of tires for various types of vehicles—including passenger cars, trucks, motorcycles, and aircraft—Michelin has been diversifying its operations to embrace high-tech materials and innovative technologies. The company is actively expanding its expertise into new markets with high technological potential, such as construction, aeronautics, low-carbon energies, and healthcare, through its "Michelin in Motion" strategy. This strategic direction underscores Michelin's commitment to leveraging strategic partnerships for developing breakthrough innovations, particularly in areas like flexible composite products, Engineered Polymers, and hydrogen solutions. Additionally, Michelin continues to influence the hospitality industry through its MICHELIN Guide, establishing itself as an international authority in recommending outstanding restaurants and hotels. Through these endeavors, Michelin aims to supply solutions for demanding applications across various sectors, thereby reinforcing its position as a multifaceted supplier beyond its traditional tire manufacturing domain.

Summarized from source with an LLMView SourceSector: Non-Energy Materials

Sales Performance

Group sales for the nine months ending September 30, 2025, decreased by 4.4% compared to the previous year. The downturn was primarily driven by a contraction in the Original Equipment segment in Europe and North America, as well as increased competition from imported budget tires in the Replacement segment.

Segment Highlights

Passenger Car & Light Truck tires saw a 2% rise in Original Equipment demand, buoyed by growth in the Chinese market, despite significant declines in Europe and North America. Truck tires outside China experienced a 4% drop in Original Equipment markets, with North America facing a sharp 20% decline. In contrast, the Replacement market for Truck tires grew by 4%, fueled by budget tire imports.

Volume and Mix

Overall volumes decreased by 5.5% year-to-date, heavily impacted by a 9.0% contraction in the Truck segment, including a over 30% fall in Original Equipment. However, demand for larger tires in the Passenger Car & Light Truck segment and growth in Mining and Aircraft tires improved the sales mix, partially offsetting weaknesses in North America.

Financial Outlook Adjustments

Following the third-quarter performance, Michelin revised its 2025 guidance. Segment Operating Income at constant exchange rates is now expected to be between €2.6 billion and €3.0 billion, lower than previously forecasted. Free cash flow before M&A is projected to range from €1.5 billion to €1.8 billion. Additionally, the 2026 operating income ambition has been adjusted and will not meet the initially targeted €4.2 billion.

Currency Impact

The weaker US dollar against the euro negatively impacted the financial results by 2.3% for the period, with the effect intensifying in the third quarter.

Summarized from source with an LLMView Source

Key figures

-10.6%1Y

5.39%3Y

2.87%5Y

Performance

24.1%1Y

21.5%3Y

24.1%5Y

Volatility