15 Oct 2025
North American weakness and softer currency weigh on group performance
Clermont-Ferrand, France – Michelin has lowered its 2025 outlook due to deteriorating business conditions, particularly in North America, over the third quarter, the group has announced.
The adjustment followed “further deterioration of the business environment versus expectations made in July,” said Michelin ahead of its 22 Oct financial statement.
Besides North America, Michelin said it had posted year-on-year volume growth in the third quarter.
The group said it drove growth and value across various market segments "in a chaotic business context and despite near-term uncertainties weighing on demand.”
In North America, however, third quarter sales volumes fell by nearly 10%.
The drop was linked to “plummeting demand from OEMs in truck and agriculture, a weak sell-out market in truck replacement reflecting a soft economy, and B2C sales headwinds.”
On the margin front, Michelin said that “group competitiveness has been impacted by tariffs.”
In addition, the US dollar’s weaker-than-expected rate of 1.17 against the euro, compared to 1.15 previously, had “further impacted free cash flow at group level.”
As a result, Michelin now expects segment operating income (SOI) at constant 2024 exchange rates between €2.6 billion and €3.0 billion, compared with a previous forecast of above €3.4 billion.
Free cash flow before mergers and acquisitions is projected between €1.5 billion and €1.8 billion, down from a prior estimate of above €1.7 billion.
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