Tire maker Michelin maintained its 2026 operating income and cash flow targets after currency movements reduced nine-month revenue, while replacement tire demand and acquisitions partly cushioned weaker sales to automakers.
Sales totaled €19.175 billion in the nine months ended Sept. 30, down 0.5% from €19.275 billion a year earlier. Revenue rose 1% at constant exchange rates and 0.1% after also excluding changes in business scope.
Exchange-rate movements took €300 million off revenue, chiefly because the U.S. dollar weakened during the first half, Michelin said. Changes in the businesses included in its results added €179 million. Lower tire volumes subtracted €159 million, while tire price and mix added €206 million.
Tire volumes fell 0.8%, largely reflecting reduced sales to vehicle manufacturers. Volumes of MICHELIN-brand replacement tires, however, rose 4%. Michelin said a shift toward higher-value tires helped its sales mix, although the price component alone reduced nine-month revenue by €97 million.
Michelin said price increases introduced in the second quarter turned that price effect positive in the third quarter. The company linked the increases to higher input costs.
Third-quarter revenue reached €6.488 billion, compared with €6.247 billion a year earlier. Quarterly growth was 2.2% at constant exchange rates and 0.8% after also excluding changes in business scope.
Polymer Composite Solutions revenue rose 21.9% to €1.149 billion, helped by the additions of Cooley Group, Flexitallic and TexTech. Excluding scope changes, the segment’s revenue fell 2.7% as weaker conveyor sales outweighed growth elsewhere. Michelin linked the conveyor weakness to cautious spending by mining customers, particularly amid weak iron ore and coal markets in Australia.
Consumer revenue fell 1% to €10.397 billion, Transportation declined 3.7% to €4.342 billion, and Specialties slipped 0.9% to €3.287 billion.
Michelin’s guidance calls for 2026 segment operating income to rise from 2025 levels at constant exchange rates and scope. It also targets more than €1.6 billion in free cash flow before mergers and acquisitions. The company has scheduled its annual results for Feb. 11, 2027.
