France · Delayed Price · Currency is EUR Compagnie Générale des Établissements Michelin Société en commandite par actions Earnings Call Transcripts
Fiscal Year 2025
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Segment operating income reached EUR 2.9 billion at iso-Forex, with free cash flow before M&A at EUR 2.1 billion. Sales declined 4.4% year-over-year, but PCS growth and new acquisitions support future profitability. 2026 guidance targets higher operating income and over EUR 1.6 billion free cash flow.
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Profit warning issued after a sharp Q3 downturn in North America, driven by a wholesaler exit and market share loss. Full-year segment operating income guidance was cut to €2.6–3.0bn, but strong cash flow supports an accelerated €400m share buyback.
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Solid H1 profitability and cash flow were achieved despite volume declines and regulatory headwinds. Full-year guidance is maintained, with H2 expected to benefit from restructuring, seasonality, and easing raw material costs. Tariffs and FX remain key risks.
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The meeting highlighted robust 2024 financials, a strong dividend, and continued strategic transformation under the Michelin In Motion 2030 plan. All resolutions passed with large majorities, and the board emphasized resilience, innovation, and sustainability amid global uncertainties.
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Q1 2025 sales fell 1.9% to EUR 6.5 billion, driven by a 7.3% volume drop from weak OE demand, while replacement markets showed modest growth. Full-year guidance is maintained, with expectations for improved H2 performance and continued product innovation.
Fiscal Year 2024
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Solid operating income and strong cash flow were achieved despite lower sales and market volatility. Guidance for 2025 targets higher operating income and robust cash flow, with benefits expected from restructuring, new product launches, and a focus on profitable segments.
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Q3 2024 saw sales and volumes decline due to weak OE demand, regulatory and geopolitical headwinds, and mining destocking, but operating margin and free cash flow guidance were preserved or upgraded. Premium segments and cost controls supported resilience.
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Segment operating margin rose to 13.2% on strong mix and cost discipline, despite a 3.1% sales decline. Guidance for 2024 is unchanged, with robust cash flow and margin recovery in key segments, while market distortions from Asian imports and cost inflation remain key risks.