Core Viewpoint - Michelin has revised its 2025 outlook downward due to a tougher operating environment than previously anticipated, expecting segment operating income to be between €2.6 billion and €3 billion, down from a prior estimate of above €3.4 billion [1][3]. Group 1: Q3 Performance - In Q3, Michelin reported year-on-year volume growth outside North America, indicating its ability to expand across market segments despite ongoing volatility [2]. - However, North America experienced a significant decline, with sales volumes falling nearly 10% due to lower OEM demand in truck and agriculture sectors, sluggish truck replacement sales, and challenges in B2C demand [3]. Group 2: Financial Projections - Free cash flow before mergers and acquisitions is now projected to be between €1.5 billion and €1.8 billion, down from a previous estimate of more than €1.7 billion [3]. - For the first half of 2025, Michelin's sales totaled €13 billion, a decrease of 3.4% year-on-year, with tyre volumes declining by 6.1% due to weakness in original equipment markets [5]. Group 3: Market Conditions - Michelin noted that tariffs have negatively impacted competitiveness and margins, alongside a larger-than-expected depreciation of the US dollar, which has further pressured free cash flow [4]. - The company had previously indicated that tyre markets were expected to be stable in 2025 compared to 2024, amidst a highly uncertain economic environment [4].