Michelin strives to retain investors
Michelin has planned to buy back its own shares worth up to 2 billion euros to retain investors amid problems in the company's tire business, according to Bloomberg.
The share buyback will start in 2026 and will last until 2028, and Michelin's financial director, Yves Chapot, noted that the company may show flexibility if funds are needed for larger deals.
The news agency adds that currently, Michelin, like its competitors, is facing difficulties due to a slowdown in demand for tires and fierce competition from cheap Chinese products, as a result of which analysts from Bernstein recently pointed out that the company needs to take measures to retain investors.
To better cope with the complex situation in the tire market, Michelin is actively developing the production of polymer composites, which are used, for example, in the manufacture of inflatable tent covers for the army and textile products for the space industry, and among its clients is Elon Musk's SpaceX. Michelin is also working on a new generation of adhesive materials with reduced harmful substances.
Michelin has allocated about 1 billion euros to complete three deals to purchase assets in the composite materials segment, Chapot said. Earlier, Michelin did not disclose the financial details of the acquisition of assets, such as the American company Flexitallic, which specializes in sealing products.
Another area where Michelin is currently actively working is the production of medical products, and a number of acquisitions have already allowed the company to develop implantation material that ensures tissue regeneration.
In 2025, Michelin's total revenue decreased by 4.4% to 26 billion euros. Tire sales in physical terms decreased by 4.7%, and the company says that more than 80% of the decline in indicators falls on the primary equipment segment, and especially significantly, demand from manufacturers of trucks and agricultural equipment in North America has fallen. In the secondary market, sales of Michelin-branded tires have grown slightly, while demand for other company brands is declining due to significant stocks of cheap tires among distributors.
The company adds that in 2025, they improved their assortment in the passenger car tire segment. In particular, the share of tires with a diameter of 18 inches or more was increased to 68% of sales, and the growth in sales of Michelin-branded tires in the secondary market is contributed by the popular Primacy and CrossClimate lines.
According to Michelin CEO Florent Menegaux, last year, a number of Michelin departments worsened their performance due to intensified competition, unstable customs tariffs, etc. At the same time, "the dynamics of Michelin's development in the polymer composites segment, ensured by recent acquisitions, confirms our ability to occupy strong positions in high-margin segments".