Michelin (ML) Q2 2026 earnings summary

Executive summary

• Segment operating income rose 7% at constant scope and FX, reaching €1.45 billion (11.4% margin), despite a 2.6% reported revenue decline to €12.7 billion due to adverse currency effects.

• Free cash flow before M&A improved to €282 million, reflecting robust financial discipline.

• Three strategic acquisitions in Polymer Composite Solutions (Cooley Group, Flexitallic, Tex Tech) accelerated portfolio diversification and boosted non-tire business growth.

• Maintained progress on strategic goals under the Michelin in Motion 2030 plan, emphasizing resilience, innovation, and sustainability.

• Full-year guidance confirmed, targeting growth in segment operating income and over €1.6 billion in free cash flow before M&A.

Financial highlights

• Revenue: €12,687 million, down 2.6% as reported, but up 0.5% at constant exchange rates; 3.1% adverse currency impact.

• Segment operating income: €1,446 million (11.4% margin), up 0.3 pts year-over-year.

• EBITDA: €2,418 million (19.1% of sales); free cash flow before M&A at €282 million.

• Net debt increased to €4,547 million, with gearing at 26%.

• Dividend of €1.38 per share paid; share buyback program of up to €750 million underway.

Outlook and guidance

• Full-year guidance reaffirmed: growth in segment operating income at constant scope and FX, and over €1.6 billion in free cash flow before M&A.

• H2 expected to see weaker OE passenger car markets, stable to slightly lower replacement, truck OE recovery in North America, and continued resilience in mining and specialties.

• Ongoing cost inflation risk from Middle East conflict, with €400 million additional cost inflation scenario maintained.

• 2026 tire markets expected to remain broadly stable: Passenger Car/Light Truck (-2% to +1%), Truck (-1% to +2%), Specialty (0% to +3%).

• Crisis management protocols in place to address geopolitical and inflationary risks.