Michelin posts slight dip in sales over first three quarters

Clermont-Ferrand, France – Michelin has posted a 0.5% year-on-year dip in sales to €19,175 million in its financial results for the first nine months of 2026.

The performance, reported 20 Oct, partly reflected a volume effect of €159 million due to a decline in OE tire volumes in the three main market segments.

The impact was largely mitigated by 4% volume growth in the replacement market and a third quarter improvement in the OE market.

Michelin also benefitted from a favourable price-mix effect of €206 million, linked mostly to increased sales of high value-added tires, notably 18” and above sizes.

On the other hand, it noted a negative €97-million price effect on first half price decreases resulting from a decline in raw material costs in 2025.

However, added the French group, “the price effect turned positive in the third quarter, reflecting price hikes in reaction to increasing input costs.”

At non-tire Polymer Composite Solutions (PCS) sales rose 21.9% year-on-year to €1.15 billion – helped by €179 million from the integration of acquisitions Cooley Group and Flexitallic in the first half and TexTech as of 1 July.

These gains for the PCS segment offset a decline in ‘conveyors’ demand on “cautious spending by mining customers and weak iron ore market.”

Tire trends

Tire volumes declined by 0.8% over the nine months to 30 Sept, as a decline in OE sales slightly offset “more resilient” replacement demand.

In the consumer tire segment, Michelin reported sales down 1.0% year-on-year to €10.4 billion over the first nine months, though up 2.2% in the third quarter.

Volumes grew by 0.5%, with passenger car replacement and two-wheelers offsetting continued weakness in OE and decreasing sales of tier 2 and tier 3 brands.

Meanwhile, lower OE sales of passenger car & light truck tires reflected “weak global markets and an unfavourable mix of automakers and vehicle models.”

This was particularly the case in Europe and North America, while in China, Michelin said sales “continued to grow in a contracting market.” 

In the ‘transportation’ segment, Michelin reported sales down 3.7% to €4.3 billion for the first three quarters. Volumes fell 1.5%, mainly due to lower OE sales.

However, a trend reversal in the third quarter saw segment revenue rise 1.7% year-on-year, as “OE sales improved as anticipated in North America following the recovery in Class 8 truck orders and production.” 

Replacement sales fell “slightly”, with North America “still facing low freight demand and consumer sentiment, and South America dealing with major import flows of low-priced tires.”

European sales were higher over the first nine months, supported by a “competitive high-value offering and refreshed product portfolio.” 

In the ‘specialties’ tire segment, revenue fell 0.9% year-on-year to €3.3 billion, but was up 0.4% on a like-for-like basis. Third-quarter sales came in 2.2% higher.

Mining product sales “continued to grow and gain market share, particularly in large tire dimensions and underground mining applications,” said Michelin. 

Michelin noted pressure on OE agricultural tire sales in North America and Europe, but ‘infrastructure’ product sales were supported by new projects including data-centre construction.