Finance
Michelin shares fall as much as 11% after profit warning
Published by Global Banking & Finance Review®
Posted on October 14, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 14, 2025
2 min readLast updated: January 21, 2026
Michelin shares dropped 11% after a profit warning due to weak North American market conditions, impacting truck and agriculture segments.
By Gilles Guillaume
PARIS (Reuters) -Shares in Michelin fell as much as 11% on Tuesday, to their lowest in almost three years, after the tire maker cut its forecast for full-year income more than expected due to weak business conditions in North America.
The company said late on Monday it expected 2025 segment operating income of between 2.6 billion euros and 3.0 billion euros ($3.0 billion-$3.5 billion), down from an earlier forecast of income above 3.4 billion euros, after third-quarter sales volumes fell almost 10% in its key region, North America.
Michelin produces its tires for the North American market locally, avoiding a direct impact from U.S. tariffs. However, it is seeing a knock-on impact from weaker truck sales after customers became more cautious in the volatile environment.
Michelin's shares tumbled 11% at the opening before reducing losses and were down 8.7% by 0839 GMT, the lowest since July 2023 and on track for their worst day since March 2020.
Last week, German carmaker BMW cut its annual earnings forecast due to U.S. import tariffs, while Mercedes reported a drop in third-quarter sales.
Michelin attributed its lower outlook to "plummeting demand" from truck and agriculture segments in North America in the third quarter and a weak sell-out market in truck replacement tires that reflected the soft economy. The cut was "far bigger than expected", said analysts at Deutsche Bank.
It also raised concerns about the 2026 target, which Jefferies said was "very clearly likely to be cut" in the third or fourth quarter. The French company reports third-quarter sales on October 22.
Michelin said in May 2024 it was targeting an operating income of 4.2 billion euros for 2026.
(Reporting by Gilles Guillaume; Writing by Dominique Patton; Editing by Susan Fenton)
A profit warning is a public announcement by a company that its earnings will be lower than expected, often due to unforeseen circumstances affecting its business operations.
Operating income is the profit a company makes from its core business operations, excluding any income derived from non-operational activities. It is a key indicator of a company's profitability.
Market reaction refers to the response of investors and traders to news or events that affect a company's stock price, often resulting in price fluctuations based on perceived value.
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