Michelin expects operating profit to rise in 2026 after a 14% decline in 2025, driven by weakness in original equipment sales, particularly truck tires in North America and agriculture. The French tire maker reported 2.9 billion euros in segment operating income for 2025, down from previous levels but above the 2.7 billion euro consensus.

Sales fell 4.4% to 26 billion euros, with tire volumes declining 4.7% as original equipment demand weakened. The downturn was most pronounced in the United States, where U.S. tariffs added 230 million euros to costs in 2025, with an expected 120 million euro impact in 2026. Michelin had previously warned about slowdowns in the North American truck market following delays to U.S. emissions rules and Chinese retaliatory measures on U.S. farmers.

The company will maintain its dividend at 1.38 euros per share and announced a 2 billion euro share buyback program for 2026-2028, citing strong cash generation. While North America remains Michelin's largest market, the company manufactures locally to avoid direct tariff exposure but still faces higher raw material costs and softer car demand as automakers raise prices and consumers grow cautious.