Michelin Posts 2025 Results
Michelin Group's automotive, two-wheel and related distribution segment achieved $16.9 billion in sales during 2025, a 2% year-over-year decrease.
The company's road transportation and related distribution segment, which includes TBR tires, achieved around $7.1 billion in sales last year, down 8.7% from prior-year numbers.
Overall, Michelin reported $30.7 billion in sales, including non-tire businesses, a 4.4% year-over-year drop.
The total year-over-year drop was driven by several factors, including a 4.7% decline in sales volumes, "stemming from another year of very low output in the original equipment (OE) markets, especially in the truck and beyond-road segments, with North America particularly impacted," as well as a prolonged downturn on certain specialty tire businesses and "an ongoing implementation of the Group's selectivity strategy, which entails moving away from less profitable business and focusing on markets, consumers and segments that leverage the full value of its innovations and technologies."
Other factors include a 3% increase in price-mix, a 3% decrease stemming from negative currency impact and more.
Automotive business
Volumes in Michelin's automotive, two-wheel and related distribution segment, which includes passenger and light truck tires, dipped 1.9% in 2025, "mainly reflecting the contraction in the original equipment markets in mature regions," say Michelin officials. This was partially off-set by a favorable mix effect, "due to the resilience of replacement sales, continued market upscaling and a positive price effect."
Michelin achieved "a steady increase in sales of 18-inch and larger tires, which now make up 68% of total automotive tire sales."
OE sales declined "due to market contractions in Europe and North America, although this was partially off-set by strong growth in China. The Group is strengthening its partnerships with the most demanding OEMs and consolidating its positions in high value-added markets, particularly in China."
Michelin's replacement channel results were driven by "resilient demand and continued premiumization of its product portfolio. Michelin-branded sales were boosted by ongoing growth of 18-inch and larger sizes and for winter and all-season tires."
Michelin officials add that the company "actively and selectively managed its portfolio" during 2025 with a focus on sales "in the most value-accretive segments."
On the TBR tire side, OE tire sales "fell steeply due to the combined impacts of market slowdowns and the Group's portfolio selectivity strategy. Order books of OEMs were dragged down by uncertainty" surrounding government regulations.
Replacement TBR tire sales "edged down year-on-year, with contrasting trends across various regions."
North American performance
OE TBR tire sales in North Ameria "fell sharply" in 2025, driven by the combination of low OEM activity and Michelin's strategy of "reducing its exposure to this market via price adjustments aimed at preserving value," say company officials.
"Replacement tire sales trended down due to a temporary erosion of the Group's competitiveness caused by price adjustments made as a result of the introduction of customs tariffs," plus a downturn in retread sales "against a backdrop of fierce competition and high imports of budget tires."
Michelin's replacement consumer tire sales in North America decreased in 2025 "due mainly to the contraction of the OE market against a backdrop of macro-economic and regulatory uncertainties."
Michelin reports that it bolstered its position in premium PLT segments in the 18-inch and larger category, as well as off-road tires sold under the firm's BFGoodrich brand. "This quarter sales were adversely affected by the one-off impacts of reorganization of the wholesale approach," plus market disruptions caused by tariffs. "These issues were dealt with swiftly, however, and sales performance swung back up in the fourth quarter."