Group sales and segment operating income were supported by a powerful improvement in the mix, despite soft tire volumes. Margin at constant exchange rates was maintained at 12.6%.
Michelin delivered segment operating income of 3.4 billion in 2024 and generated a free cash flow of 2.2 billion, demonstrating its ability to adapt to uncertain market conditions.
WEBWIRE – Wednesday, February 12, 2025
Group sales and segment operating income were supported by a powerful improvement in the mix, despite soft tire volumes. Margin at constant exchange rates was maintained at 12.6%.
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27.2 billion in sales, with a highly positive 1.9% mix effect reflecting the Groups value-driven approach.
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Tire volumes down 5.1% due to the unprecedented simultaneous decline in OE demand across every segment, intensifying competition in mass markets, and one-off headwinds in Specialties.
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Market positions improved in targeted business segments and geographies, particularly 18-inch and larger Passenger car tires, high-end truck fleets, mining and aircraft tires.
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3.4 billion in segment operating income, with a preserved 12.6% margin at constant exchange rates, fueled by mix enrichment and improved operating performance despite a low utilization rate of industrial capacity.
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Currency fluctuations reducing sales by 1.0% and segment operating income by 2.0%, with most currencies declining against the euro.
Automotive & Two-wheel (SR1): operating margin of 13.1% despite volumes penalized by the OE downcycle, supported by a strong enrichment of the sales mix, with 18-inch and larger segment reaching 65% of MICHELIN-branded Passenger car tire sales.
Road transportation (SR2): operating margin recovery confirmed at 9.0%, thanks to a targeted and value-based approach to the market, and to the enhanced valorization of our products and solutions. Operating income growing by 26% despite the slowdown of OE markets in Europe (down 20%) and North & Central America (down 11%).
Specialties (SR3): sales and operating margin facing a temporary drop, due to depressed OE markets in Agricultural and Construction activities, and to one-off headwinds in mining tires. Growth recorded in Aircraft and Polymer Composite Solutions activities. In markets with promising fundamentals, Group strengthening its position.
Strong cash generation leading to a stronger financial position.
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Free cash flow before acquisitions of 2.2 billion, with EBITDA reaching 19.7% of sales (up 0.3 points)
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Net income down slightly, of 1.9 billion.
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Dividend of 1.38 per share to be submitted to the Annual Meeting.
Florent Menegaux, Managing Chairman:My first words are for all our teams around the world, who demonstrate unfailing engagement on a daily basis. I want to salute them. Our 2024 results are solid, despite a particularly unstable economic and geopolitical context. To maintain our competitiveness, we also had to make difficult industrial restructuring decisions in Poland, China, Sri Lanka and France. Michelin continues to implement its Michelin in Motion 2030 strategy.
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Guidance
2025 tire markets are expected with slight growth over the year, but declining in the first half due to lower OE demand.
In a highly uncertain context, Michelin is expecting to improve its segment operating income at constant exchange rates on 2024, and to generate more than 1.7 billion in free cash flow before acquisitions.
The Group maintains its 2026 objectives released at the 2024 Capital Markets Day.
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