Michelin: net profit slows but the group confirms its forecasts
Revenue fell by 2.6 per cent, whilst profits were down 8.8 per cent to €766 million
The automotive sector is struggling, but Michelin is holding its own: the French manufacturer has reported a 2.6 per cent fall in revenue for the first half of the year on a reported basis, to €12.7 billion, though revenue rose by 0.5 per cent at constant exchange rates.
The strategy
The positive price/mix effect (+0.9 per cent) – as explained by the company in a Michelin press release – was driven by an improved product mix and the strong momentum of the Michelin brand, whose sales in the aftermarket rose by 5 per cent in volume terms. The volume effect (-0.9%), on the other hand, reflects the decline recorded in the original equipment segment and among Tier-3 brands. The favourable scope effect is linked to the acquisitions of the Cooley Group and Flexitallic.
Profitability
Segment operating profit, which represents the overall performance of Michelin’s main operating divisions, reached 1.45 billion, equivalent to 11.4 per cent of turnover, compared with 11.1 per cent in the first half of 2025, up 7 per cent on a like-for-like basis and at constant exchange rates. Net profit was down 8.8% to 766 million euros “in a turbulent economic environment”. Free cash flow before M&A transactions was positive at 282 million, an improvement of 384 million compared with the first half of 2025. The debt ratio, at 26 per cent, “confirms the strength of the Group’s financial position”. The company, despite an economic and geopolitical environment that remains uncertain, “confirms its forecasts for the full financial year, targeting growth in segment operating profit at constant scope and exchange rates compared with 2025, and free cash flow before M&A of more than €1.6 billion’.
