Michelin's Sales Declined in First Quarter

Michelin Group posted $7.2 billion in revenue during the first quarter of 2026, down 5.4% year-over-year.

According to Michelin officials, "currency effect" accounted for the decline, "reflecting the Euro's strong appreciation against the U.S. dollar and most currencies."

Michelin's overall tire sales declined by 1.4% during the first three months of 2026 versus the same period last year. However, the company's replacement tire sales increased, showing a 3% volume gain "boosted by strong performance of the Michelin brand."

Michelin also reported a "favorable mix effect of 1.9% ... supported by the consumer segment product mix and a positive business mix evolution."

By segment

Michelin's consumer tire sales totaled $3.97 billion during the first quarter of 2026, down 4.4% on a year-over-year basis, and its transportation tire sales, which includes commercial truck tires, totaled $1.57 billion, a 11.3% year-over-year decline.

The company reports that original equipment PLT tire sales "continued to decline due to market weakness - down 4% overall, including a 12% fall in China - and an unfavorable mix of vehicle brands and models.

"The structural product mix enrichment continued, with sales of 18-inch and larger tires accounting for 69% of Michelin-brand sales in the quarter."

On the TBR tire side, OE tire volume "continued to be affected by falling markets in North America (down 19%) and South America (down 16%) and by the consequences of managed market share decrease on selected accounts. 

"In the replacement market, sales of new tires were up in Europe but down in North America in a depressed road transportation market. Fleet service offerings continued to strengthen, including Michelin Connected Fleet, which is expanding further in South America."

Michelin's "Beyond Road" business, which includes ag and OTR tires, stabilized during the first three months of 2026, despite "a still-negative OE market for agricultural tires.

"Mining tire sales were up, with the Group strengthening its positions in a growing market."

2026 outlook

Looking ahead to the rest of the year, Michelin officials say the "Middle East conflict is creating uncertainty about global demand. It increases the risk of disruption in raw materials supply and raises purchasing costs, primarily for raw materials and energy.

"The Group's crisis management team aims to ensure the safety of people and continuity of operations. Michelin leverages its strengths ... that reduce geographical interdependence and vertical integration that ensures greater supply chain resilience.

"In this unpredictable environment, the Group regularly assesses developments in the markets and its supply chans. At this state, guidance for 2026 remains unchanged."