Michelin (ML) Q3 2025 TU earnings summary

Executive summary

• Nine-month 2025 sales declined 4.4% year-over-year to €19.3 billion amid a challenging economic environment, with a sharper downturn in Q3, especially in North America, driven by a major wholesaler exit and market share losses from pricing actions.

• Strategic decisions, including exiting unprofitable segments and restructuring pricing with OEMs, led to negative volume impacts, compounded by weak OE demand across all vehicle segments and intense market competition.

• The Group revised its 2025 and 2026 guidance downward following Q3 deterioration, particularly in North America, with fundamentals remaining strong due to solid profitability, significant cash flow, and a robust balance sheet supporting continued share buybacks.

Financial highlights

• Group sales for the first nine months of 2025 were €19,275 million, down 4.4% from €20,171 million in 2024, with a 5.5% drop in volume partially offset by a 3.2% positive price/mix effect and a -2.3% currency impact.

• Q3 2025 sales were €6,247 million, down from €6,690 million in Q3 2024, with price-mix contributing +1.5% and volume down -4.5%.

• Segment operating income guidance for the year was revised down from above €3.4bn to €2.6–3.0bn, mainly due to volume and fixed cost absorption issues.

• All segments experienced negative volume and FX impacts, with North America seeing a nearly 10% volume decline in Q3.

Outlook and guidance

• Full-year 2025 Segment Operating Income expected between €2.6bn and €3.0bn (previously above €3.4bn), with continued uncertainty in North America and truck OE markets.

• Free cash flow before acquisitions expected between €1.5bn and €1.8bn, with a cumulative target of €5.5bn over 2024–2026.

• 2026 ambitions for SOI above €4.2bn and 14% margin will not be met; restructuring savings and raw material tailwinds expected to support future performance.