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Compagnie Générale des Établissements Michelin (MX:MLN)
:MLN
Mexico Market
EarningsQ2 2026 Earnings Report

Compagnie Générale des Établissements Michelin (MLN) Q2 2026 Earnings Report

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MX:MLN Q2 2026 EPS Results

Actual EPS$21.93
Consensus EPS$25.68
Beat/MissMissed by -$3.75
One Year Ago EPS$23.11

MX:MLN Q2 2026 Revenue Results

Actual Revenue$250.63B
Expected Revenue$130.65B
Beat/MissBeat by +$119.99B
YoY Revenue Growth-2.62%

Earnings Announcement Details

QuarterQ2 2026
Date07/27/2026
TimeDuring Market Hours
Conference CallMonday, July 27, 2026
MX:MLN Upcoming Earnings
Compagnie Générale des Établissements Michelin's next earnings date is estimated for February 11, 2027, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:MLN Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 27, 2026|
% Change Since:
|
Earnings Call Sentiment|Neutral
The call portrayed a balanced, resilient operational performance: underlying profitability improved (SOI +€103m at constant scope/FX), free cash flow was positive and acquisitions strengthened higher‑value portfolios. However, meaningful negative factors persist — significant FX headwinds (>€400m revenue impact), modest volume declines, conveyor weakness in polymer composites, manufacturing/logistics inflation (~€230m), substantial restructuring cash outs (€400–500m in 2026), and geopolitical risks that could add ~€400m of cost pressure. Management confirmed full‑year guidance, indicating confidence in execution, but the combination of near‑term macro, cost and cash‑out pressures tempers the upside.
Company Guidance
Michelin reaffirmed its 2026 guidance: segment operating income (SOI) at constant scope and FX to exceed 2025 levels and free cash flow (FCF) before M&A to be more than €1.6 billion, supported by H1 results of €12.7 billion revenue (reported -2.6%, +0.5% at constant FX), SOI €1.45 billion (11.4% margin, +0.3pp; +€103m at constant scope/FX), EBITDA €2.4 billion (19.1% of sales) and H1 FCF €282 million; full‑year capex ambition remains ~€2.0 billion, M&A spend YTD ~€600 million (Cooley, Flexitallic closed; Tex‑Tech closed July 1) with polymer composite solutions up 16% in H1 and acquisitions set to lift that business ~35% on a full‑year basis, gearing was 26% at June (vs 22% a year ago), and ~€1.7 billion is earmarked for shareholder returns in 2026 (including €944 million dividends paid and ~€750 million buyback, €300 million executed by end‑June). Management reiterated it is steering on a scenario that assumes Brent around $100/bbl (a prolonged disruption could add ~€400 million of cost inflation) while noting they expect to offset headwinds through pricing, mix, restructuring and sequencing of savings (management discussed manufacturing/logistics headwind estimates in the call, noting figures cited around €400 million split €300m/€100m but also an updated net view nearer ~€230 million).
Revenue and Growth at Constant FX
Group revenue €12.7 billion in H1; reported revenue down 2.6% (currency effect) while revenue at constant exchange rates grew +0.5%, showing resilience versus a challenging environment.
Improved Profitability — Segment Operating Income
Segment operating income (SOI) reached €1.45 billion (11.4% margin), a +0.3 percentage point improvement y/y; SOI rose €103 million (+7%) at constant scope and FX.
Positive Free Cash Flow and Confirmed Full-Year Cash Target
Positive free cash flow of €282 million in H1 (strong improvement vs H1 2025). Company reaffirms full-year target of >€1.6 billion free cash flow before M&A.
Polymer Composite Solutions Momentum and M&A
Polymer Composite Solutions revenue grew ~16% (H1), aided by acquisitions Cooley and Flexitallic (Tex‑Tech closed July 1). Scope effect added ~€90 million to revenue and the combined acquisitions will increase polymer composite revenue by ~35% on a full‑year basis.
Michelin Brand Strength and Premiumization
Michelin brand replacement tonnage rose +5%; mix improvement of +1.8% contributed ~€150 million to revenue. Continued premiumization supported higher price/mix performance.
Material Cost Steering Benefit to Profitability
Raw material movements and steering delivered a benefit of approximately €199 million to SOI in H1, partially offsetting other cost pressures.
Environmental and People Achievements
Water withdrawal down 8% and Scope 1 & 2 CO2 emissions down 9% vs H1 2025. Michelin ranked 7th most innovative company in Europe (Fortune) and received the Universal Fair Pay Check certificate for global gender‑equitable compensation.
Capital Allocation and Financial Strength
Gearing increased to 26% (from 22%) primarily due to M&A but group retains strong credit ratings (A, stable). Planned shareholder returns of ~€1.7 billion in 2026 including €944 million dividends and ~€750 million buyback (€300 million executed by end‑June).
Segment-Level Resilience
Consumer segment revenue +0.7% at constant FX with margin up to 12.5%; Specialties +1.1% at constant FX and operating margin 14.1%. Transportation profitability slightly improved despite OE headwinds.

MX:MLN Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Feb 11, 2027
2026 (Q4)
29.24 / -
23.706―
2026 (Q2)
25.68 / 21.93
23.113-5.13% (-1.19)
2025 (Q4)
21.73 / 23.71
19.65620.60% (+4.05)
2025 (Q2)
30.23 / 23.11
31.608-26.88% (-8.49)
2024 (Q4)
25.48 / 19.66
21.138-7.01% (-1.48)
Oct 22, 2024
2024 (Q3)
- / -
33.386―
2024 (Q2)
29.24 / 31.61
33.386-5.33% (-1.78)
Apr 24, 2024
2024 (Q1)
- / -
31.608―
2023 (Q4)
28.15 / 21.14
31.608-33.13% (-10.47)
Oct 24, 2023
2023 (Q3)
- / -
23.311―
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed