Michelin sales fall 4.4% as group cuts 2026 earnings target

Clermont-Ferrand, France – Michelin group has reported a 4.4% year-on-year decline in sales for the first nine months of 2025 as the third quarter economic environment "deteriorated more than expected.”

Revenue for the first three quarters came in at €19,275 million, down from €20,171 million reported for the same period last year, Michelin said 22 Oct.

Michelin linked the decline to a 5.5% year-on-year drop in volumes (€1.2 million), with a “significant” fall in OE demand across all segments and accounting for nearly 80% of the lost volumes.

Replacement sales were weighed down by increased competition from “non-pool imported tires”, notably in tier-2 and tier-3 brands.

A positive 3.2% tire price-mix effect helped partially offset the volume loss, contributing over €640 million to overall sales.

The price effect remained favourable, though it weakened in the third quarter as “contractual indexation clauses softened and competition intensified.”

The mix effect stayed at a high level, supported by the rising share of higher-value products, notably in the 18-inch and larger segment.

Michelin also reported “a favourable momentum” in non-tire sales, with growth observed across most segments and “significant gains” in high-technology seals.

A 2.3% negative currency impact reflected the depreciation of most currencies against the euro, including the US dollar.

Breaking down the results, Michelin said the tire markets performance during the period reflected “a contraction in the OE segment in Europe and North America, and a replacement segment led by imports of budget tires.”

For passenger car & light truck tires, OE demand rose by 2% year-on-year over the nine-month period, with a Chinese rebound "masking a significant decline in Europe and North America.”

The replacement 'sell-in market' was stable, edging up 1%, as a surge in low-cost imports ahead of customs tariffs drove up inventories amid flat 'sell-out' demand.

For truck tires (excluding China), the OE markets fell by 4%, mainly due to a 20% slump in North America, while Europe demand stabilised at a low level.

The replacement sell-in market grew by 4%, fuelled budget imports, while sell-out demand was flat in most regions 'in fragile economic activity'.

Speciality tire markets, said Michelin, were “mixed” over the period, with demand rising for aircraft and mining tires, but continuing to “fall steeply” for OE agricultural and construction tires.

In the polymer composite solutions unit, the aviation and equipment maintenance segments grew during the period.

As previously reported by ERJ, Michelin has cut its 2025 financial outlook, now expecting segment operating income (SOI) at constant exchange rates between €2.6 billion and €3.0 billion, down from a prior target of above €3.4 billion.

The group has also revised down its 2026 earnings ambition, presented at its 2024 capital markets day.

Michelin said it no longer expects to reach its 2026 SOI target of €4.2 billion (at 2023 exchange rates) and now forecasts next year’s SOI to rise only in line with 2025.

The group will provide further details in February 2026.