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

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Toyo Tire Corporation said Mitsubishi Corporation has ceased to be a major shareholder after tendering its entire holding through a treasury share buyback, ending its status as the company’s largest shareholder.

The change took effect on 10^th August , 2026, following Toyo Tire’s acquisition of its own shares through off-auction trading (ToSTNeT-3). Mitsubishi tendered all its shares, excluding less than one unit, as part of the transaction.

As a result, Mitsubishi is no longer classified as a major shareholder or associated company of Toyo Tire, the company said.

Before the transaction, Mitsubishi held 30,822,206 shares, equivalent to 20.07 percent of total voting rights, and ranked as the largest shareholder. Following the change, its holding has effectively been reduced to zero.

The move follows Toyo Tire’s earlier announcement on August 7, 2026 regarding the termination of its capital and business alliance with Mitsubishi, alongside plans to repurchase its own shares.

Toyo Tire said the change would have no impact on its consolidated financial results.

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Linglong Tire has become the first Chinese tyre manufacturer to join the Global Data Service Organization (GDSO) as a full member, marking a step in the industry’s efforts to standardise and exchange tyre-related data globally.

The company joins the non-profit body as its fourteenth member. GDSO was established in January 2022 by Bridgestone, Continental, Goodyear, Michelin and Pirelli to facilitate the digital exchange of tyre data and develop common standards across the sector.

Moh Wahi, Head Of Truck And Bus Tyre Development at Linglong Europe, said: "By joining the GDSO as a Full Member and providing reliable data, we want to be the first Chinese tyre manufacturer to make a positive contribution to the further development of the tire industry and set new standards for the efficient processing of tire data in the digital age."

Riccardo Giovannotti, Secretary General of GDSO, said: "With Linglong Tire as a Full Member, GDSO is gaining one of the leading Chinese tire companies which is committed to digitalization and sustainability in the industry. Together, we will further make progress in developing standards for data processing and future-oriented solutions."

Shandong Linglong Tire Co., Ltd., founded in 1975, operates seven research and development centres globally and employs almost 20,000 people. The company runs nearly 200,000 sales outlets and exports products to 175 countries.

It supplies tyres to more than 200 production bases for over 60 automakers and has manufacturing facilities across China, Thailand and Serbia, with plans to expand further overseas.

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TyreSafe, UK’s charity dedicated to raising tyre safety awareness, has joined forces with Sussex Police’s Road Safety Team to introduce a pioneering digital reference tool for frontline officers. The initiative equips police with immediate, device-accessible tyre safety data during roadside stops.

Developed as a local pilot, the application enables consistent vehicle examinations and improves driver communication regarding tyre dangers. It offers specific checklists for diverse vehicle categories, including motorcycles, cars, heavy goods vehicles, light commercial vans and towed trailers. The system further incorporates guidance on part-worn tyres, common queries and educational talking points.

Following its Sussex trial, the programme holds potential for nationwide adoption across UK police forces. This deployment underscores Sussex Police’s dedication to roadway innovation and reinforces the essential contribution of proper tyre maintenance to overall public safety.

Stuart Lovatt, TyreSafe Chair, said, “This partnership with Sussex Police is a landmark moment for tyre safety enforcement and education. By putting reliable, accessible tyre safety guidance directly into the hands of frontline officers, we can ensure safer vehicles on our roads and help prevent avoidable collisions and breakdowns. Sussex is leading the way, and we hope this model will soon be adopted nationally.”

Superintendent Jo Grantham, Head of Roads Policing, Sussex Police, said, “Our officers are committed to keeping road users safe, and having instant access to this tyre safety resource makes a real difference on the ground. It supports enforcement while also giving us the tools to educate drivers more effectively. We’re proud to be working with TyreSafe on this project and to be the first police force in the country to pilot it.”

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The UK Towing Safety Alliance (UKTSA) has published a comprehensive four-year analysis of incident data from National Highways’ Strategic Road Network, covering 2022 to 2025. The findings reveal a 23 percent rise in total towing-related incidents, driven primarily by a maintenance crisis affecting utility and commercial trailers. While traffic collisions involving towed vehicles decreased by 17 percent, mechanical breakdowns now constitute 77 percent of all towing-related incidents, highlighting vehicle and trailer condition as the sector's foremost challenge.

The data coincides with SMMT Motorparc 2025 figures showing Britain's vehicle fleet at its oldest recorded level, with average car age reaching 9.7 years. The summer harvest season has also arrived, bringing agricultural trailers back to roads after months of disuse. NFU Mutual research indicates collisions involving agricultural vehicles are 56 percent more likely between May and September, reinforcing the need for pre-journey roadworthiness checks.

Utility and agricultural trailers now account for nearly half of all towing-related callouts, surpassing 3,000 incidents in 2025. Regionally, the North West has overtaken the South East as the most incident-prone area, with trailer failures surging 60 percent since 2022, while the North East recorded a 55 percent increase. A growing divide exists between leisure and commercial towing sectors.

Leisure sector improvements, including fewer horsebox incidents and regional caravan reductions, suggest awareness campaigns are yielding positive results. However, utility trailer failures continue climbing, indicating maintenance standards across commercial and domestic sectors require greater attention. Regular servicing, correct loading and proper coupling remain essential to prevent avoidable incidents.

For working trailers, summer represents peak operational period, with agricultural and utility trailers seeing intensive use while rural roads become busier with tourists and cyclists. The Alliance emphasises that trailers stored for extended periods require thorough inspections before returning to service.

The UKTSA urges all towers to perform three essential checks covering tyres, load and connection before every journey. Tyres must be inspected for pressure, tread and deterioration; loads correctly distributed and couplings and electrical connections verified. The Alliance will place ‘The Working Trailer’ at the centre of safety campaigns, collaborating with industry partners to boost maintenance awareness and reduce preventable breakdowns across the Strategic Road Network.

A spokesperson for the UK Towing Safety Alliance said, “It’s encouraging to see fewer collisions involving towing vehicles, which suggests that drivers are becoming more aware of safe towing practices. However, that progress is being undermined by a growing number of preventable mechanical failures. The challenge is no longer simply about how people tow – it’s increasingly about what they’re towing and the condition it’s in. As both tow vehicles and trailers get older, regular maintenance has never been more important.”

Stuart Lovatt, Chair of TyreSafe, said, “Harvest season places extra demands on both vehicles and trailers, particularly those that may only be used for a few months each year. One of the most common issues we see is tyres that appear to have plenty of tread but have deteriorated through age, weathering or prolonged storage. Whether you’re towing a livestock trailer, plant trailer, horsebox or caravan, tyres should always be inspected for correct pressure, damage, cracking and signs of ageing before every journey. A few minutes spent carrying out these checks can prevent breakdowns and significantly improve safety for everyone using our roads.”

Sarah Smithurst MBE, COO, National Trailer & Towing Association (NTTA), said, “Across the NTTA network, we’re seeing a noticeable increase in enquiries from people looking to refurbish older trailers or source second-hand trailers, including imported models, as a more affordable alternative to buying new. While extending the life of a trailer is often entirely appropriate, it’s essential that owners understand that trailers are not maintenance-free. Many have been in service for years, sometimes decades, and components naturally deteriorate over time, even if the trailer has seen relatively little use. Every trailer should be thoroughly inspected before it returns to the road, with particular attention paid to tyres, brakes, bearings, couplings and lighting. Investing in regular servicing and maintenance is far less costly than experiencing a breakdown – or worse, being involved in an incident. The NTTA continues to help and advice new and old trailer users about safety and many are asking for help when towing, especially the reversing aspect of a trailer, now the B&E test was withdrawn. We are also seeing more trailers being repatriated from North America and Europe rather than purchasing new in the UK.”

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