Michelin (ML) Q2 2026 earnings summary

Executive summary

• Delivered solid first-half 2026 results with segment operating income up 7% at constant scope and FX, reaching €1.45 billion (11.4% margin), despite a 2.6% reported revenue decline to €12.7 billion due to adverse currency effects and macroeconomic uncertainty.

• Free cash flow before M&A improved to €282 million, reflecting robust financial discipline and positive business model resilience.

• Integrated three strategic acquisitions (Cooley Group, Flexitallic, Tex Tech Industries) in Polymer Composite Solutions, accelerating portfolio diversification and supporting non-tire business growth.

• Maintained strong brand momentum, innovation pipeline, and progress on sustainability and social responsibility, with multiple industry awards and recognition.

• Full-year guidance confirmed, targeting growth in segment operating income and over €1.6 billion in free cash flow before M&A.

Financial highlights

• H1 2026 revenue: €12,687 million, down 2.6% as reported due to a 3.1% adverse currency impact, but up 0.5% at constant exchange rates.

• Segment operating income: €1,446 million (11.4% margin), up 0.3 pts year-over-year; EBITDA margin at 19.1% of sales.

• Free cash flow before M&A: €282 million, a €384 million improvement year-over-year; after M&A, free cash flow was negative €328 million due to acquisitions and buybacks.

• Net debt increased to €4,547 million, with gearing at 26.0%.

• Dividend of €1.38 per share paid; share buyback program of up to €750 million underway.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: segment operating income at constant exchange rates and scope to exceed 2025 levels; free cash flow before M&A expected above €1.6 billion.

• H2 passenger car OE markets expected to weaken, with replacement markets stable; truck OE to improve, especially in North America.

• Mining and aircraft markets expected to be supportive; agriculture OE remains in downturn.

• Scenario planning assumes Brent oil at $100/barrel, with potential €400 million additional cost inflation if disruption persists.