Compagnie Générale des Etablissements Michelin posted first-half revenue of €12.69 billion, a hair below the analyst consensus of €12.74 billion. On a reported basis sales slid 2.6% compared with the prior year, yet when measured at constant exchange rates revenue increased by 0.5% - an outcome the company attributed in part to an adverse currency effect of 3.1%.
Net income for the period came in at €766 million, falling short of the estimate of €977 million. Despite the earnings miss, Michelin's segment operating income expanded to €1.45 billion, equivalent to 11.4% of sales, improving from 11.1% in the first half of 2025.
Measured at constant scope and exchange rates, segment operating income rose 7%. Management cited favorable price-mix and lower raw material prices as primary drivers of the improvement. Those benefits were partially offset by higher manufacturing and logistics costs, which the company said included inflationary pressures and customs tariffs.
"Michelin’s teams can be proud of their performance over the first half: our Group is showing a marked improvement in our sales momentum," said Florent Menegaux, Managing Chairman. "This is the result of excellent work to provide quality offers at the forefront of innovation, to further enhance our brand’s attractiveness and to maintain our continued drive for competitiveness."
Free cash flow before mergers and acquisitions returned to positive territory at €282 million, compared with a negative €102 million in the first half of 2025.
By business line, the Consumer segment produced €6.93 billion in revenue and posted an operating margin of 12.5%. The Transportation segment reported €2.81 billion of sales with a 5.9% operating margin. The Specialties segment generated €2.22 billion in revenue and a 14.1% operating margin, while Polymer Composite Solutions delivered €728 million in revenue with a 13.6% operating margin.
Michelin confirmed its full-year guidance, maintaining a target of growth in segment operating income at constant currency and scope versus 2025, alongside a target of more than €1.6 billion in free cash flow before mergers and acquisitions.
For investors and market participants, the first half shows a mixed picture: revenue narrowly underperformed expectations and net income missed estimates, but operating profitability and cash generation improved, and management has kept its full-year financial objectives unchanged.