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Michelin increased segment operating income to €3.6bn in 2023 and generated a strong €3.0bn in free cash flow, reflecting the strength of the Group’s strategy

Michelin delivered a high segment operating income in 2023 despite adverse market conditions and currencies, demonstrating once again the quality of its business model while improving people engagement and accelerating its sustainability roadmap.   
This performance illustrates the Group’s strategy to capture the full value of its differentiated solutions, designed to meet increasingly demanding customer requirements.

Sales totaling €28.3bn, up 2.0% at constant exchange rates, with mix and price offsetting unfavorable market conditions. Non-tire sales grew by 10%.

  • Tire sell-in markets globally flat but with an adverse mix, with Original Equipment growing in most segments while Replacement faced massive destocking (now considered complete).

  • Tire sales volumes down 4.7%, reflecting the Group’s strategy of prioritizing markets and segments that appreciate its unique value proposition.

  • Price and mix effects up 5.7%, of which 1.2% of mix pulled by both products and geographies.

  • Non-tire sales up 10% or €146m at constant scope of consolidation. The integration of Flex Composite Group is well on track.

  • Negative 2.9% exchange rate effect as most currencies declined against the euro.


Segment operating income reached all-time high of €3.6bn; margin up 0.7pts to 12.6% of sales.

  • Price effect lifted by the lagged impact of 2022 adjustments.

  • Substantial mix effect resulting from market and segment targeting, combined with the Group’s enhanced value proposition.

  • Improved operating performance offsetting cost inflation factors.


Free cash flow before acquisitions of €3.0bn reflecting improving EBITDA and sharp reduction in working capital.

  • EBITDA up 4% at €5.5bn or 19.4% of sales.

  • €1.0bn reduction in working capital, driven by a decline in both inventory volumes and value.

  • Positive €0.2bn contribution from JVs and associates, notably the TBC distribution JV in the USA.

ROCE reached 11.4%, up 0.6 pts, reflecting intrinsic performance and active portfolio management.

Net income was stable at €2.0bn despite €0.6bn of industrial restructuring provisions. A dividend of €1.35 per share will be submitted to the Annual Meeting, up 8% versus 2022.

Given its structural cash generation and solid financial structure, the Group will initiate a share buyback program, which could be worth up to €1 billion over the period 2024-2026.

Michelin is pursuing its “Michelin in Motion 2030” strategy on its other two pillars. On the People side, 2023 saw a record engagement rate of 83.5%. The Group is also improving its environmental footprint, reducing water consumption by 10% and CO2 emissions by 6% (scopes 1&2).

Florent Menegaux, Managing Chairman, said: “In a challenging business environment, our highly engaged teams have contributed to deliver the very strong results that we are announcing today for 2023. I would like to thank them warmly for their tremendous ability to adapt daily. With these results, our Group has demonstrated its ability to deliver the targets set for 2023 within its "Michelin in Motion 2030" strategy and is looking forward to the next deployment steps”.

2024 guidance: in overall stable global markets, above €3.5bn in segment operating income at constant exchange rates; more than €1.5bn in reported Free cash flow before acquisitions.

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