- Michelin‘s total segment operating income for the first half of the year missed estimates, reporting €1.45 billion, a 19% decline year-over-year, compared to the estimated €1.51 billion.
- The automotive segment’s operating income was €865 million, down 8.6% year-over-year, falling short of the €912.6 million estimate.
- Road transportation segment saw a significant decrease in operating income by 46% year-over-year, to €166 million, with expectations originally set at €257.3 million.
- Specialty businesses operating income was reported at €421 million, 21% lower year-over-year, but exceeding the estimate of €329.5 million.
- The overall segment operating margin fell to 11.1%, down from 13.2% the previous year, and was slightly below the estimated 11.5%.
- Automotive margin decreased to 12.2%, narrowly missing the 12.6% estimate.
- Road transportation margin dropped to 5.5% from 9.5% a year ago, below the expected 8.32%.
- Specialty business margin stood at 14.5%, showing a decrease from 17.1% year-over-year, yet surpassing the 11.5% estimate.
- Michelin‘s revenue was €13.03 billion, a slight 3.4% decline year-over-year, just below the €13.07 billion estimate.
- Automotive revenue saw a minimal decline of 0.5% year-over-year to €7.11 billion, slightly missing the €7.13 billion estimate.
- Road transportation revenue dropped 7% year-over-year to €3.01 billion, compared to the estimated €3.09 billion.
- Specialty business revenue was €2.91 billion, a 6.1% reduction year-over-year, yet exceeding the expected €2.86 billion.
- The overall segment EBITDA was €2.43 billion, a 12% decrease year-over-year, narrowly missing the €2.5 billion forecast.
- Net income fell by 28% year-over-year to €840 million, notably lower than the anticipated €973 million.
- Michelin maintains it expects stable tire markets in 2025 compared with 2024, despite economic uncertainties.
- The company is upholding its financial goals for 2025, provided no further economic downturn occurs in the latter half of the year.
- A €140 million negative provision impacted first-half net income, related to future risks in the Symbio hydrogen joint venture with Stellantis, who has decided to exit the fuel-cell technology program.
- A conciliation procedure was initiated against Stellantis following their decision on the Symbio venture, as mentioned by Michelin CFO Yves Chapot.
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Michelin on Smartkarma
Michelin, a renowned player in the tire industry, has caught the attention of analysts on Smartkarma, including Baptista Research. In their research report titled “Michelin – Can Its Growth in Specialty Segments Boost Overall Profit Margins?”, Baptista Research delves into the latest financial results of Michelin, highlighting a mix of achievements and challenges. The report emphasizes Michelin‘s resilience in turbulent market conditions, driven by its strong brand and innovation capabilities. With a strategic vision outlined through the “Michelin in Motion Strategy 2030,” Michelin is positioning itself to expand beyond tires into services, experiences, and polymer composite solutions.
A look at Michelin Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Michelin, the renowned auto parts manufacturer, shows promising long-term potential according to the Smartkarma Smart Scores. With strong scores in key areas such as Value and Dividend, scoring a 4 out of 5 in each, Michelin demonstrates solid financial health and investor attractiveness. Additionally, its high Resilience score of 4 indicates the company’s ability to weather economic uncertainties.
While Michelin‘s Growth and Momentum scores stand at 3 each, suggesting moderate performance in these aspects, the overall outlook remains positive. As a global provider of tires and related products, Michelin‘s diverse market reach positions it well for future growth opportunities, making it a compelling choice for investors seeking stability and potential returns in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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