Financial Performance - The company reported consolidated sales of €25.99 billion in 2025, a decline of 4.4% from €27.19 billion in 2024, with a 1.4% decrease at constant exchange rates [49][88] - Segment operating income was €2.72 billion, representing 10.5% of sales, down from €3.38 billion and 12.4% in 2024 [49][90] - Free cash flow before M&A amounted to €2.1 billion, reflecting strong operational management [9][52] Segment Analysis - The Automotive & Two-wheel segment had an operating margin of 11.7%, impacted by lower sales volumes in Original Equipment, although the sales mix improved with 68% of MICHELIN-brand tire sales being 18-inch and larger [3][56] - The Road Transportation segment's operating margin narrowed to 4.7%, primarily due to weak Original Equipment sales in North America, which saw a 20% market contraction [4][62] - The Specialties segment delivered an operating margin of 13.5%, with growth in Mining and Aircraft tires offsetting declines in Agricultural markets [5][64] Market Trends - Tire sales volumes decreased by 4.7%, with over 80% of the decline coming from Original Equipment markets, particularly for Truck and Agricultural tires in North America [8][50] - The Replacement segment saw slight growth in MICHELIN-brand tire sales year-on-year, while other brands faced challenges due to low-priced tire imports [8][61] - The non-tire businesses, including Michelin Connected Fleet and Polymer Composite Solutions, positively contributed to sales and operating income [8][49] Strategic Initiatives - The company is committed to its Michelin in Motion 2030 strategy, focusing on adapting industrial capacities and accelerating product plans [6][77] - A share buyback program of up to €2 billion is planned for 2026-2028, reflecting confidence in cash flow generation [11] - The company aims for growth in segment operating income in 2026 compared to 2025, targeting over €1.6 billion in free cash flow before M&A [11][10] Environmental and Social Governance - The company received high scores for its ESG performance, with a gold medal status from EcoVadis and a low-risk rating from Sustainalytics [74][76] - The Group's CO2 emissions were reduced by 48% compared to 2019, demonstrating progress towards carbon neutrality [96] - The percentage of renewable and recycled materials used in tires reached 32%, with a target of 40% by 2030 [99]