Michelin Revises Annual Forecasts Following Sales Decline

Revenue Decline in Detail

Michelin's revenue amounted to 19.3 billion euros for the first nine months of 2025, a decrease of 4.4% compared to the same period in 2024. This decline is mainly due to a 5.5% drop in volumes, especially notable in the heavy truck segment with a 9.0% fall. The group notes that the decline intensified in the third quarter, particularly in North America. Additionally, currency effects were unfavorable, impacting results by 2.3%.

Adjusted Financial Guidance for 2025

In response to these developments, Michelin has adjusted its financial guidance for 2025. The operating income from sectors at constant exchange rates is now expected to be between 2.6 and 3.0 billion euros, compared to an initial forecast of over 3.4 billion euros. The free cash flow before acquisitions is projected to be between 1.5 and 1.8 billion euros, down from a previous expectation of more than 1.7 billion euros. The goals for 2026 have also been revised, with expected growth relative to 2025, to be specified in February 2026.

Challenges in the Tire Market

The tire market is facing complex challenges, with declining demand in Europe and North America for original equipment, and increased competition from low-cost tire imports. Specialized activities show mixed demand, with growth in the aviation and mining sectors, but a persistent decline in agriculture and construction. Meanwhile, Michelin continues its strategic initiatives, including a share buyback program and a new global employee share ownership plan.