Michelin reported a decline in revenue

Sales at Michelin declined by 2.6% in the first half of 2026 compared to the same period last year, reaching 12.7 billion euros, with the company stating that exchange rate fluctuations negatively impacted performance.

"At constant exchange rates, revenue increased by 0.5%, driven by price mix changes and recent acquisitions in the polymer composites segment," noted Michelin's Chief Financial Officer Benedicte de Boisseson.

Operating profit from Michelin's core divisions rose to 1.45 billion euros, exceeding analysts' expectations. The company estimates that the Middle East conflict will increase energy, raw material, and logistics costs by approximately 400 million euros in 2026. Following the release of this forecast, Michelin shares fell by 2%.

According to de Boisseson, the company has established 35 emergency response teams to monitor its supply chain, as around 55% of the raw materials it uses are oil-based. She also noted that the current supplier situation can now only be forecasted one to two months ahead, limiting the company's ability to rebuild strategic inventories.

De Boisseson emphasized, however, that Michelin is not experiencing any raw material shortages and that the company has confirmed its full-year 2026 outlook.