Michelin Posts First Half Results

Michelin Group's first half 2025 sales totaled $15.2 billion, down 3.4% from the first six months of 2024.

Michelin's total segment operating income for the first half of 2025 totaled around $1.76 billion, "reflecting the temporary impact of low production volumes," according to company officials.

The company's tire volume "shrank by 6.1%, mainly due to the still broadly depressed original equipment (OE) markets, especially for truck, agricultural and infrastructure tires. In the replacement segment, with sellout markets confirming their structural stability, sales volumes were close to 2024," though down slightly by 1%.

"Tire sell-in market developments were largely disrupted by substantial intercontinental import flows in anticipation of changes in customs duties."

Michelin's "price and mix effects reached a positive 4%" during the first half of the year, "reflecting the Group's value-driven approach. The Michelin brand strengthened its market positions in targeted regions and segments and the (company's) sales team successfully rolled out a widely renewed product plan."

Michelin officials add that manufacturing capacity adjustment projects are being rolled out on schedule.

A deeper look

Michelin's Automotive & Two-Wheel division's operating margin "stood at 12%" during the first half. "While profitability was eroded by lower OE equipment volumes, it also reflected a strongly enhanced sales mix, with the contribution of 18-inch and larger tires rising four points to 68% of Michelin-brand passenger tire sales" on a global basis.

The company's Road Transportation unit experienced an operating margin decline to 5.5%, which Michelin officials characterize as "a temporary dip due to the under-absorption of fixed costs following the steep drop in OE sales, particularly in North America, where the market contracted by 19% over the first half. Fleet service revenue increased and the Group stepped up its program of innovative product launches in Europe and North America."

Michelin's Specialties unit - which encompasses ag, OTR and material handling tires - had an operating margin of 14.5% during the first six months of 2025. This reflects lower volumes "caused by the persistent decline in OE markets in the agricultural, construction and material handling tire segments. The aircraft and mining tire businesses grew during the period."

Full-year outlook

For 2025 as a whole, "sell-in tire markets are expected to be stable compared with 2024, in a highly uncertain environment in terms of economic activity, customs tariffs and exchange rates. To navigate in this erratic environment, Michelin relies on its fundamentals: agile and engaged teams, differentiating solutions that are valued by demanding customers, diverse markets and a strong local presence in key regions, as well as the financial strength needed to make independent decisions and manage operations effectively.

"In the absence of any further deterioration in the economic environment in the second half of the year, Michelin is maintaining its financial ambitions for 2025," according to Michelin officials.

Florent Menegaux, Michelin's managing chairman, says the company's "fundamentals are decisive assets in these unstable and highly unpredictable times. They enable us to manage our activities as closely as possible and adapt to turbulence as best we can. We are determined to further strengthen the resilience of our business model without giving up our medium-term ambitions.”