Michelin delivered segment operating income of €3.4 billion in 2024 and generated a free cash flow of €2.2 billion, demonstrating its ability to adapt to uncertain market conditions.

Financial Performance - Michelin reported segment operating income of €3.4 billion in 2024, with a free cash flow of €2.2 billion, showcasing adaptability to market conditions [1][9] - Group sales amounted to €27.2 billion, reflecting a 4.1% decline from €28.3 billion in 2023, with a 5.1% decrease in tire volumes [8][42] - The segment operating margin was maintained at 12.4%, with a slight decrease from 12.6% in 2023 [10][42] Segment Analysis - Automotive & Two-wheel segment achieved an operating margin of 13.1%, supported by a strong sales mix, with 65% of MICHELIN-branded passenger car tire sales being 18 inches or larger [3][51] - Road transportation segment confirmed an operating margin recovery at 9.0%, with operating income growing by 26% despite a slowdown in original equipment (OE) markets [4][56] - Specialty segment faced a temporary drop in sales and operating margin due to depressed OE markets in agricultural and construction activities, although growth was noted in aircraft and polymer composite solutions [5][58] Market Conditions - The global passenger car and light truck tire market grew by 2% in 2024, driven by a 4% increase in replacement sales, despite a 2% decline in OE demand [14][20] - In Europe, OE demand for passenger car and light truck tires declined by 7%, while North America saw a 2% decrease [15][17] - The truck tire market (excluding China) improved slightly by 1%, with a 7% decline in OE sales offset by a 3% growth in replacement demand [27][30] Strategic Initiatives - Michelin continues to implement its "Michelin in Motion 2030" strategy, focusing on maintaining competitiveness through industrial restructuring in various countries [6][67] - The company anticipates slight growth in tire markets for 2025, with expectations to improve segment operating income and generate over €1.7 billion in free cash flow before acquisitions [7][9] - The Group aims to achieve carbon neutrality in manufacturing and energy use by 2050, with a 37% reduction in carbon emissions compared to 2019 [88][89]