Michelin (ML) investor relations material

Strategic direction and 2026 objectives

• 2026 guidance confirmed, with focus on growth in tires and acceleration in Polymer Composite Solutions despite a highly uncertain environment.

• Unique assets such as strong teams, brand, and innovation drive progress toward 2030 ambitions.

• Strategic acquisitions in Polymer Composite Solutions have expanded portfolio and profitability.

• M&A remains a key growth lever, with strict financial and cultural criteria for value creation.

• AI and digital solutions are embedded across the value chain to enhance performance in people, profit, and planet dimensions.

Innovation and product leadership

• Multiple new product launches in 2026 demonstrate technological leadership, including tires with longer life, lower rolling resistance, and increased load capacity.

• Pilot Sport Endurance tire features 50% renewable and recycled materials, exclusive fitment on hypercars, and improved performance.

• Digital Twin technology enables predictive maintenance, lifecycle optimization, and enhanced safety, leveraging proprietary software.

• Continued leadership in tire abrasion and energy efficiency, with BEV-ready designs and lowest particle emissions among premium brands.

Market performance and financial results

• H1 2026 saw solid performance with 0.5% revenue growth at constant FX, 5% SOI growth, and strong free cash flow.

• Segment operating income reached €1,555M (+7% vs H1 2025), with EBITDA at 19.1% of sales.

• Replacement tire sales outperformed on brand strength, while OE volumes remained challenging.

• Polymer Composite Solutions delivered robust growth, especially in sealing and belting, despite a setback in conveyors.

• Group margin improved to 11.4% despite FX headwinds and transportation segment challenges.