Michelin forecasts profit rebound in 2026 after US slowdown hit 2025 earnings
The French tyre maker expects earnings to recover this year following a 14 percent profit drop in 2025. Strong cash flow supports a new share buyback program.
Insights:
Compagnie Générale des Établissements Michelin Société en commandite par actions , headquartered in France 
FR, announced on February 11, 2026, that it expects its segment operating income for 2026 to be above 2025 levels. This optimistic outlook follows a fiscal year 2025 where the company experienced a more-than-14% fall in segment operating income, which dropped to €2.9 billion. During the same period, total sales for the group declined by 4.4% to €26 billion, reflecting a broader slowdown in global demand.
FR, announced on February 11, 2026, that it expects its segment operating income for 2026 to be above 2025 levels. This optimistic outlook follows a fiscal year 2025 where the company experienced a more-than-14% fall in segment operating income, which dropped to €2.9 billion. During the same period, total sales for the group declined by 4.4% to €26 billion, reflecting a broader slowdown in global demand.The company identified a significant slowdown in the United States 
US and rising operational costs as the primary drivers behind the 2025 profit decline. A major factor in these costs was the impact of U.S. tariffs, which Michelin quantified at €230 million for 2025. Looking ahead, the company expects the tariff impact to decrease to approximately €120 million in 2026. These trade measures, which involve markets including China 
CN, have created a complex environment for the manufacturer in North America, which it identified as its largest market.
US and rising operational costs as the primary drivers behind the 2025 profit decline. A major factor in these costs was the impact of U.S. tariffs, which Michelin quantified at €230 million for 2025. Looking ahead, the company expects the tariff impact to decrease to approximately €120 million in 2026. These trade measures, which involve markets including China CN, have created a complex environment for the manufacturer in North America, which it identified as its largest market.
