Michelin (ML) investor relations material

Executive summary

• Q1 2026 revenue was stable at constant exchange rates, with reported revenue at €6,167 million, down 5.4% year-over-year due to negative currency effects, notably euro appreciation against the US dollar.

• MICHELIN brand replacement sales grew 3% in volume across all segments, with strong performance in premium and digital channels, especially in China.

• Two of three announced M&A deals (Cooley Group and Flexitallic) closed, supporting growth in Polymer Composite Solutions; TexTech expected to close mid-2026.

• Market conditions remain challenging, especially in Original Equipment for passenger cars and trucks, with negative trends in North America and Europe, but growth in China.

• 2026 guidance is maintained despite inflationary pressures, geopolitical uncertainties, and currency headwinds, leveraging operational agility and local supply chains.

Financial highlights

• Q1 2026 revenue at €6,167 million, down 5.4% at current FX, but stable at €6,515 million at constant FX; negative currency effect accounted for the entire revenue decline.

• Volumes declined 1.4% overall, with a 3% increase in Michelin brand replacement volumes offset by OE declines.

• Price/mix effect was positive at +1.1%, with price effect at -0.8% and mix at +1.9%.

• All segments except Transportation showed growth at constant FX.

• Non-tire sales remained stable at constant scope and currency.

Outlook and guidance

• Full-year 2026 guidance is unchanged: segment operating income and free cash flow above 2025 levels, with free cash flow targeted above €1.6 billion.

• Slight volume growth is still embedded in guidance, though Q1 was negative and Q2 is expected to be flat.

• Inflationary headwinds of at least €400 million are expected, mainly in H2, driven by raw materials (€300 million) and energy/logistics (€100 million).

• Market expected to be softer in H1 than H2, especially in OE.

• Crisis management focuses on operational continuity, supply chain resilience, and leveraging local operations.