Michelin reported a resilient performance in the first half of 2026 despite unfavourable exchange rates and continued weakness in original equipment (OE) tyre markets, as strong demand for premium replacement tyres and lower raw material costs supported profitability. The French tyre maker also reaffirmed its full-year guidance, expressing confidence in its ability to navigate geopolitical uncertainty and competitive pressures.

Group revenue stood at EURO 12.69 billion, down 2.6 percent from a year earlier on a reported basis. However, at constant exchange rates, revenue grew 0.5 percent, with a stronger euro reducing reported sales by 3.1 percent.

Michelin's core operating performance improved during the period. Segment operating income stood at EURO 1.45 billion, with the operating margin improving to 11.4 percent  from 11.1 percent  a year earlier. Excluding currency movements and changes in business scope, operating income rose 7 percent , driven by premium product sales, better pricing and lower raw material costs.

Cash generation also strengthened significantly. Free cash flow before mergers and acquisitions improved to EURO 282 million, compared with a negative EURO 102 million in the first half of 2025, while gearing remained at 26 percent , reflecting a net debt position of EURO 4.55 billion.

Premium replacement demand offsets OE weakness

Michelin said sales of MICHELIN-branded replacement tyres increased 5 percent, supported by premium products and larger rim-size tyres. The company said higher sales of premium tyres and the acquisitions of Cooley Group and Flexitallic helped offset weaker OE demand and lower volumes in Tier-2 and Tier-3 brands.

Lower raw material costs also boosted profitability, offsetting higher manufacturing, logistics and tariff-related expenses. However, net income declined to EURO 766 million from EURO 840 million due mainly to a lower contribution from equity-accounted companies.

Consumer business leads performance

The Consumer segment remained Michelin's largest earnings contributor, reporting revenue of EURO 6.93 billion and an operating margin of 12.5 percent , supported by strong replacement demand, particularly for the MICHELIN Primacy 5 Energy and Pilot Sport 5 Energy ranges.

The Transportation division improved its operating margin to 5.9 percent  despite continued weakness in North America's truck OE market, while the Specialty segment maintained a 14.1 percent  operating margin as strong mining and aircraft tyre demand offset weakness in agricultural OE markets.

The Polymer Composite Solutions business delivered the fastest revenue growth, rising 14 percent  to EURO 728 million, largely due to acquisitions, although margins were affected by weaker demand for conveyor products.

Regional tyre markets remain mixed

Michelin said global passenger car and light truck OE demand declined 3 percent, while the replacement market grew 1 percent during the first half.

Europe

• OE demand declined 1 percent
• Replacement demand fell 2 percent

North and Central America

• OE demand declined 1 percent
• Replacement demand fell 4 percent

China

• OE demand contracted 7 percent
• Replacement demand increased 9 percent

The company attributed China's OE weakness to lower government subsidies for new vehicles, while Europe experienced slower economic activity and North America was affected by tariff-driven vehicle price increases and weaker EV incentives. In Europe, replacement demand was also influenced by dealers building inventories ahead of anti-dumping duties on Chinese tyre imports.

In truck tyres, the global market excluding China grew only 1 percent , with sharp regional differences:

• Europe: OE +4 percent , Replacement +9 percent
• North & Central America: OE -12 percent , Replacement -13 percent
• South America: OE -11 percent , Replacement +32 percent

Michelin said North American demand remained subdued as fleet operators delayed purchases, while South America's replacement market expanded rapidly due to increased low-cost tyre imports.

Acquisitions and innovation

Michelin completed three acquisitions during the first half, including Tex Tech Industries, following earlier purchases of Cooley Group and Flexitallic, strengthening its Polymer Composite Solutions portfolio in higher-value industrial markets.

The company also unveiled a universal AI-powered digital tyre twin capable of predicting tyre behaviour using real-time vehicle data and introduced new tyres containing up to 75 percent  renewable and recycled materials.

Workforce restructuring continues

Michelin plans to adapt its workforce in France through voluntary measures, with up to 1,500 positions potentially affected over the next three years.

In the United States, the company will progressively wind down production at its BFGoodrich plant in Tuscaloosa, Alabama, consolidating production at Fort Wayne, Indiana, resulting in approximately EURO 220 million in non-recurring charges during 2026.

Outlook

Michelin maintained its full-year guidance and continues to expect growth in segment operating income at constant exchange rates and business scope, while targeting more than EURO 1.6 billion in free cash flow before M&A during 2026.

Florent Menegaux, Michelin's Managing Chairman, said the company's improved sales momentum reflected continued innovation, stronger brand appeal and disciplined execution despite a challenging geopolitical and competitive environment.a

Comments (0)

ADD COMMENT

Link Copied!

Lassa Tyres has introduced the Wintus 3, a new winter tyre engineered for light commercial vehicle operators who depend on reliable, durable performance in harsh cold-weather conditions. The company designed the pattern to address the varied demands of business users whose vehicles are central to their operations.

The Wintus 3 features a new-generation tread pattern, advanced construction and innovative compound technologies, delivering gains over its predecessor that include up to 60 percent longer wear life and a 27 percent reduction in rolling resistance for improved efficiency and more sustainable mobility. It also improves wet braking, snow and ice performance, wet handling and dry braking.

The tyre carries the TÜV SÜD Performance Mark, with independent benchmark testing showing measurable advantages over the competitor average in snow acceleration, snow braking, wet braking, wet cornering, dry braking and fuel and energy efficiency, including improvements exceeding 10 percent in dry braking, wet braking and fuel efficiency.

Offered in 22 sizes spanning 14 to 16 inches, the Wintus 3 will be available in Lassa markets during the 2026 winter season, with size availability varying by market.

Comments (0)

ADD COMMENT

Link Copied!

Liberty Tire Recycling has published the industry’s first US company-commissioned lifecycle assessment (LCA) centred on rubber-modified asphalt solutions made from recycled tyres. The study was commissioned by Liberty and carried out by Boundless, applying internationally recognised LCA methodology to evaluate the environmental impacts of the company’s asphalt-related products against conventional alternatives used in asphalt modification.

The company described the assessment as a notable step forward for rubber-modified asphalt. Environmental gains are routinely linked to recycled tyre materials in road building, yet Liberty said this analysis supplies quantified evidence behind such assertions. Greenhouse gas emissions tied to its rubber-modified asphalt solutions were tracked throughout their lifecycle.

Results showed that Liberty's asphalt products carried substantially lower greenhouse gas impacts than conventional SBS polymer modifiers. Recovering and reusing end-of-life tyre materials was also found to deliver environmental benefits exceeding the impacts of processing them. Liberty said the findings give transportation agencies, engineers, contractors and infrastructure stakeholders data-driven insights for choosing materials.

Four products were assessed: crumb rubber and three asphalt additives, namely dry mix rubber additives, a DOT additive and combined micronised rubber powder with the Rheopave additive. Dry mix rubber additives yielded the largest carbon benefit, avoiding up to 0.577 kg CO₂e per pound produced, while the tyre-derived products achieved over 100 percent lower greenhouse gas footprint than traditional SBS modifiers. Each product assessed generated a net environmental benefit, with reductions spanning 0.47 to 0.57 kg of CO₂e per pound.

Liberty said the study helps set a benchmark for measuring and communicating environmental impacts as sustainability gains prominence in infrastructure projects, and that transparent, science-based data will matter increasingly to public agencies and industry leaders weighing performance and environmental goals.

Comments (0)

ADD COMMENT

Link Copied!

Avon Tyres will make its second consecutive EICMA appearance this year, using the Milan show to unveil a refreshed motorcycle range and a renewed brand identity to a global audience of riders and trade visitors. The company will occupy Hall 9, Booth U65 at Fiera Milano between 3 and 8 November.

The exhibit reflects Avon's ‘made to be different’ philosophy and presents a focused portfolio spanning sport, touring, adventure, cruiser and classic segments. Avon's return also signals progress within Goodyear's motorcycle portfolio, where, since joining the family of brands in 2022, it has paired longstanding heritage with a modern product strategy and upgraded manufacturing.

Four flagship tyres anchor the display: the Spirit ST for sport-touring, the 3D Supersport for hypersport riders, the Roadrider MKII for classics and the Cobra Chrome for cruiser, touring and custom applications, the latter now offered in additional sizes. They are joined by the Trailrider 2, a new adventure-touring tyre launching in January 2027 that carries the ‘made to blaze your own trail’ message, targets an 80:20 road-to-off-road mix and will come in at least 20 sizes for popular adventure bikes.

Together with the existing Trekrider and Streetrunner, the lineup forms Avon's most comprehensive public display of its motorcycle portfolio to date. EICMA, which drew over 600,000 visitors last year including nearly 43,000 trade professionals from 167 countries, gives the brand a truly global stage for engaging riders, dealers and partners. Public-day attendees can also meet stunt rider Rok Bagoros at the stand on Friday 6 November at 11:30.

Roberto Finetti, Marketing Manager Motorcycle Europe, Goodyear, said, “We’re looking forward to speaking with riders and partners at EICMA about our continued growth plans for Avon. EICMA is the world’s largest motorcycle exhibition and provides the ideal place to showcase our refreshed identity and tyre range under the ‘made to be different’ philosophy.”

Comments (0)

ADD COMMENT

Link Copied!

Kumho Tire USA has announced that its driver Jack Shanahan finished third overall in the 2026 Formula DRIFT PRO Championship, concluding a strong second season with a runner-up result at Round 8, the Shoreline Showdown, held in Long Beach, California. Competing on KUMHO Ecsta V730 tyres, Shanahan entered the season finale as the top qualifier and recorded his fourth podium of the year in his E82 BMW.

After securing first place in qualifying, Shanahan collected four championship points and received a bye through the Top 32 round. He then won three head-to-head battles to reach the Finals, where he met five-time PRO Champion James Deane in a tightly fought contest. While attempting to stay close to Deane’s Mustang, Shanahan spun in Zone 6 and ultimately took second place at the Shoreline Showdown.

The KUMHO Ecsta V730 is an extreme-performance summer tyre designed to deliver exceptional grip, responsiveness and consistency in demanding track conditions, making it well suited to competitive motorsports and driving enthusiasts.

Ed Cho, CEO, Kumho Tire USA, said, “Jack has delivered an outstanding season, and we couldn’t be prouder of what he’s accomplished in just his second year competing in Formula DRIFT. His four podium finishes and third-place championship standing are a testament not only to his talent and determination but also the reliable performance of our Ecsta V730 tyres. We’re proud to support Jack as he continues to establish himself among the sport’s top competitors.”

Shanahan said, “What an incredible year it’s been for our small but mighty team. To finish second at the final round and third overall in the championship exceeded all our expectations heading into the 2026 season. Having the grip, consistency and reliability of the KUMHO Ecsta V730 tyres gave me the confidence to push my limits every round and I couldn’t be prouder of what we’ve achieved together.”

Comments (0)

ADD COMMENT

Link Copied!