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]

Group Sales Performance - Group sales for the first quarter of 2025 totaled €6.5 billion, reflecting a decrease of 1.9% compared to the previous year [2][39] - The decline in sales was primarily due to lower Original Equipment (OE) volumes, which were down 7.3%, partially offset by a positive mix effect and price increases [6][39] - The company maintained its full-year guidance for 2025, expecting to outperform its 2024 segment operating income at constant exchange rates of €3.4 billion and deliver free cash flow before acquisitions of more than €1.7 billion [8] Segment Analysis - In the Automotive and Two-wheel segment, sales increased by 1.2% to €3,559 million, driven by a favorable mix effect despite a decline in tire volumes [9][40] - The Road Transportation segment saw a sales decline of 3.5% to €1,529 million, with volumes down 8.9% due to lower OE markets in Europe and North America [9][47] - Specialty businesses experienced a 7.3% decrease in sales to €1,427 million, with significant declines in Beyond Road OE sales, particularly in Agricultural and Construction tires [9][50] Market Trends - Global demand for Original Equipment tires decreased by 1% in the first quarter of 2025, with notable declines in Europe (down 13%) and North America (down 8%), while China saw a growth of 10% [13][16] - The Replacement tire market grew by 4% globally, with Europe experiencing a 6% increase, driven by strong sales of winter and all-season tires [17][18] - The two-wheel tire market showed slight growth, particularly in the leisure motorcycle and premium scooter segments, supported by demand in China [21][46] Financial Strength and Strategy - The company has demonstrated excellent financial strength, recognized by recent upgrades from major credit rating agencies [12][61] - Michelin's business model is adapted to navigate the turbulent economic environment, with a focus on technological innovation and a diverse market presence [7][12] - The successful launch of the MICHELIN Primacy 5 range highlights the company's commitment to innovation, offering improved performance and sustainability [58]