Results and sales

Segment operating income of 13.2% of sales in the first half of 2024.
Strong free cash flow generation. Full-year guidance maintained.

In tire markets distorted by high inflows of budget tires, Group’s value-driven approach generated a strong increase in mix

• Tire sell-in markets positive in the period but inflated with high exports of Asian tires into Replacement markets. OE markets in sharp downward cycle in B2B, gradually deteriorating in B2C. Polymer Composite Solutions (PCS) markets temporarily soft relative to high first-half 2023 comparatives.

• Group’s focus on value-accretive segments and regions translating into strong 1.9% mix improvement, more than offsetting negative price effect from indexation clauses in contractual businesses.

• Sales of €13.5 billion, down 3.1% excluding the currency effect.

Segment operating income increasing to 13.2 % of sales from 12.1 % in the first half of 2023, fueled by mix improvements and lower operating costs

• Further improvement in Automotive segment operating margin despite the negative impact of indexation clauses, supported by continuous mix enhancement.

• Strong margin recovery in the Road transportation segment with price and mix both benefitting from a targeted market approach, growing contribution from Connected Solutions.

• Specialties segment delivering strong margin of 16.8% in an adverse environment: weak Beyond-Road OE markets, negative impact of price indexation clauses, high prior-year comparatives in Mining and PCS.

• Favorable operating costs across all business lines, mainly for raw materials, energy and sea freight.

Free cash flow before acquisitions of €669 million, driven by disciplined business management

• Segment EBITDA of €2.8 billion, or 20.4% of sales, up 1.6 pts vs. first-half 2023.

• Working capital benefitting from efficient inventory management.

Full-year guidance maintained

2024 guidance maintained, with segment operating income above €3.5 billion at constant exchange rates and free cash flow before acquisitions of more than €1.5 billion.

Florent Menegaux, CEO, said: “In an economic environment that remains particularly unstable, Michelin achieved a very solid first half. These results enable us to maintain our guidance for 2024. I would like to warmly thank our teams for their ability to adapt and for their commitment. I am convinced that our value-based approach, which positions us on very high value-added activities and the most accretive markets, is the right one. By pursuing its environmental and technological transformations and by placing people at the heart of all its decisions, Michelin is giving itself every advantage to successfully implement its “Michelin in Motion 2030” strategy.”