Finance
Michelin profit hit by US slowdown, sees rebound in 2026
Published by Global Banking & Finance Review®
Posted on February 11, 2026
2 min readLast updated: February 11, 2026
Quick Summary
Michelin expects a profit rebound in 2026 after a US market slowdown impacted 2025 earnings. The company plans a 2-billion-euro share buyback.
Michelin Anticipates Profit Recovery Following US Market Slowdown
Michelin's Financial Outlook
By Mathias de Rozario
Impact of US Market on Sales
Feb 11 (Reuters) - Michelin expects profit to rebound this year after a decline in 2025 caused by a slowdown in the U.S., the French tyre maker said on Wednesday.
Dividend and Share Buyback Plans
The group forecast its segment operating income - the combined profit from its Automotive and Two-wheel, Road Transportation and Specialties divisions - to be above 2025's level in 2026.
Segment Operating Income Analysis
Last year, segment operating income fell more than 14% to 2.9 billion euros ($3.4 billion), beating analysts' 2.7-billion-euro forecast in a company-compiled consensus.
Sales fell 4.4% to 26 billion euros, also above the consensus estimate of 25.8 billion euros, with a 4.7% drop in tyre volumes less than the expected 4.9% decline.
"Overall, 80% of our decline in volume is due to original equipment, particularly B2B original equipment, meaning trucks. This is particularly pronounced in the United States and the agricultural sector," Chief Financial Officer Yves Chapot told reporters.
The group already warned in its third-quarter results of a decline in the North American truck market after the postponement of U.S. vehicle emissions regulations and the impact of Chinese retaliatory measures on North American farmers' incomes.
Chapot added that the expected drop in sales volumes linked to the end of a contract with a major North American wholesaler on July 1 was fully behind the group by year-end.
North America is Michelin's biggest market. While it produces tyres locally, avoiding a direct hit from U.S. tariffs, the company saw a knock-on impact from higher raw material prices and weaker car sales after automakers raised prices and customers turned cautious.
The group recorded an impact of 230 million euros from U.S. tariffs on its 2025 costs and expects around 120 million euros in 2026, Chapot said.
Michelin is maintaining its dividend at last year's level of 1.38 euros per share, 10 cents above market expectations.
It also announced a 2.0-billion-euro share buyback programme for 2026-2028, supported by strong cash generation, Chapot said.
($1 = 0.8434 euros)
(Reporting by Mathias de Rozario in Gdansk. Additional reporting from Gilles Guillaume in Paris. Editing by Mark Potter)
Key Takeaways
- •Michelin anticipates profit recovery in 2026.
- •US market slowdown impacted 2025 earnings.
- •Segment operating income fell 14% last year.
- •North America remains Michelin's biggest market.
- •Michelin announces a 2-billion-euro share buyback.
Frequently Asked Questions about Michelin profit hit by US slowdown, sees rebound in 2026
1What is segment operating income?
Segment operating income refers to the profit generated by specific divisions of a company, excluding expenses not directly tied to those segments. It helps assess the performance of different business areas.
2What is a share buyback?
A share buyback occurs when a company purchases its own shares from the marketplace, reducing the number of outstanding shares. This can increase the value of remaining shares and is often used to return capital to shareholders.
3What is a dividend?
A dividend is a payment made by a corporation to its shareholders, usually in the form of cash or additional shares. It represents a portion of the company's earnings distributed to investors.
