Michelin: Sales Down 0.5% Over Nine Months, Return to Growth in Third Quarter
Over the first nine months of 2026, Michelin's published revenue stood at 19,175 million euros, compared to 19,275 million euros a year earlier, representing a decline of 0.5%. This decline is explained by a negative foreign exchange effect of 1.6%: at constant exchange rates, sales grew by 1.0%, and by 0.1% at constant scope and exchange rates. The group confirmed its annual guidance on October 20, 2026.
The main highlight of the publication concerns the third quarter. Growth reached 2.2% at constant exchange rates and 0.8% at constant scope and exchange rates. All three tire segments showed growth in this single quarter, while remaining down cumulatively, and the foreign exchange effect, which was unfavorable in the first half, turned favorable again.
Volumes Down 0.8%, Positive Mix Effect of 1.6%
The breakdown of revenue shows two opposing movements. Tire volumes declined by 0.8%, representing an unfavorable effect of 159 million euros, primarily reflecting lower original equipment sales across the three main segments. In the Replacement market, volumes under the Michelin brand grew by 4% by end of September.
The price-mix effect was positive at 206 million euros, or 1.1% of sales. It combines a favorable mix effect of 303 million euros (1.6%), supported by the Michelin brand, 18-inch and larger tire sizes, and the weight of the Replacement market, and a negative price effect of 97 million euros. The latter includes in the first half the decline in prices on indexed contracts, linked to the drop in raw material costs in 2025.
According to the group, the price effect turned positive again in the third quarter, following price increases implemented in the second quarter on Replacement markets. Other components include a foreign exchange effect of −300 million euros, due more than 90% to the depreciation of the U.S. dollar in the first half, a scope effect of +179 million euros, and an impact of −26 million euros from non-tire activities, related to Conveyors.
Consumer, Transport and Specialty Segments Up in Third Quarter
The Consumer segment, the largest, recorded revenue of 10,397 million euros, down 1.0% over nine months but up 2.2% in the third quarter. Its volumes grew by 0.5%, with Automotive Replacement and Two-Wheeler compensating for original equipment and the decline in Tier 2 and Tier 3 brands.
The Transport segment declined by 3.7% to 4,342 million euros, with volumes down 1.5%, but grew by 1.7% in the third quarter. This inflection was primarily driven by North America, where the heavy-duty original equipment market increased by 18% for the quarter following the resumption of Class 8 truck orders. Replacement remains weak in North America, while it grew in Europe over nine months.
The Specialty segment stood at 3,287 million euros, down 0.9%, but up 0.4% at comparable scope following the divestment of Compact line activities, and up 2.2% in the third quarter. Mining and Infrastructure advanced, while Agricultural remained penalized by original equipment in North America and Europe.
The Polymer Composite Solutions segment grew by 21.9% to 1,149 million euros, thanks to the consolidation of Cooley Group, Flexitallic and TexTech. Excluding scope effects, it declined by 2.7%, with the decline in Conveyors offsetting growth in Seals, Coated Fabrics and Films, and Belts. Conveyor orders improved in the third quarter, according to the group.
2026 Guidance Maintained, Free Cash Flow Before M&A Above €1.6 Billion
Markets remain mixed. By end of September, the global Car and Light Truck tire market was stable, with original equipment down 1% and Replacement up 1%. For Heavy-duty tires outside China, both markets grew by 1%, with significant regional disparities: Replacement declined 11% in North and Central America and grew 9% in Europe.
The next financial milestone is scheduled for February 11, 2027, with 2026 full-year results.
Michelin confirmed its guidance for 2026: growth in operating income from segments at constant exchange rates and scope compared to 2025, and free cash flow before M&A above 1.6 billion euros.
