Michelin Shares Drop 2.5% and Detach from the CAC 40, Weighed Down by Renewed Tensions in Iran
The Clermont-based manufacturer takes a breather after several weeks of progress, in a Parisian market heavily shaken by a resurgence of geopolitical tensions in the Middle East. However, the stock remains well-oriented in the short term, having set intermediate records in June and early July.
A Decline That Does Not Undermine the Advance Over Moving Averages
Michelin shares lose 2.2% to €34.28 during the session, down from €35.05 the previous day. The decline follows the CAC 40, which drops 2.24%, in the wake of a new military escalation between Washington and Tehran and a surge in Brent crude over 5% for the session, to $76.09. Volatility tightens significantly, with the VIX rising more than 20%, to 18.71.
Despite this setback, the stock remains 6% above its 50-day moving average (€32.34) and 12.4% above its 200-day moving average (€30.51), indicating that the underlying trend is not in question. The RSI at 70, however, indicates an overbought state at the time of the decline, consistent with the profit-taking observed at this level, close to the resistance identified at €35.11.
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The stock has gained 7.5% over a month and more than 17% over three months, driven by dense corporate activity. Michelin finalized in early July the acquisition of Tex Tech Industries, an American specialist in technical textiles that generated $128 million in revenue in 2025, the third major operation of the year in the Polymer Composite Solutions division. The group also highlighted during its Media Day on June 9 and 10 the specialty tire segment, which accounts for 17% of revenue and displays profitability above average.
The industrial debt reduction movement continues in the United States with the planned closure of the BFGoodrich plant in Tuscaloosa by the end of 2028. The $35.11 area remains the technical threshold to cross to extend the bullish sequence.
SectorAutomobile et mobilité›Équipementiers automobiles
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Context
Period
Period: 9M 2026
Key reported figures
Revenue: 19 175 millions d'euros
Quarterly revenue: 19 175 millions d'euros
Revenue growth: -0,5 %
Guidance from the release
Michelin confirms its full-year guidance, targeting growth in segment operating income at iso-forex and iso-scope compared with 2025, and over €1.6 billion in free cash flow before M&A.
Risks mentioned
Faiblesse persistante de la Première monte, qui fait reculer les volumes pneumatiques du Groupe de 0,8 % à fin septembre, en particulier en Tourisme Camionnette en Europe et en Amérique du Nord (en Chine, les ventes du Groupe progressent sur un marché en recul de 7 %)
Concurrence des pneumatiques importés à bas prix, notamment d'Asie, qui pèse sur les marques Tier 2 en Amérique du Nord, Tier 3 dans les principales régions et sur le Poids lourd en Amérique du Sud
Faiblesse persistante des Convoyeurs, liée à la prudence des clients miniers en matière de dépenses et à la faiblesse du marché du minerai de fer, notamment en Australie
Opportunities identified
Expansion de Polymer Composite Solutions soutenue par les acquisitions de Cooley Group, Flexitallic et TexTech en 2026 (chiffre d'affaires +21,9 % publié, -2,7 % hors effet de périmètre à cause des Convoyeurs)
Activité Mines en croissance, avec des gains de parts de marché, qui compense la pression sur le Hors-la-route (segment Spécialités -0,9 % publié, +0,4 % à périmètre comparable)
Dynamique positive de la marque MICHELIN en Remplacement avec volume de +4% en fin septembre
Outlook / guidance
Management commentary: Michelin confirms its full-year guidance, targeting growth in segment operating income at iso-forex and iso-scope compared with 2025, and over €1.6 billion in free cash flow before M&A.
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.
