Michelin warns profit goal to slip amid ongoing weakness in North America

[Michelin trucks]
Sjo/iStock Unreleased via Getty Images

Michelin (OTCPK:MGDDF [https://seekingalpha.com/symbol/MGDDF]) (OTCPK:MGDDY [https://seekingalpha.com/symbol/MGDDY]) said Wednesday that continued weakness in its North American business will extend into next year, forcing the French tiremaker to abandon its 2026 profit and margin targets.

The company now expects operating profit in 2026 to exceed 2025 levels, but not to reach its earlier goal of more than €4.2 billion ($4.9 billion). Michelin (OTCPK:MGDDF [https://seekingalpha.com/symbol/MGDDF]) (OTCPK:MGDDY [https://seekingalpha.com/symbol/MGDDY]) also withdrew its previous 14% margin target for that year, saying it will outline new financial objectives in February.

The update marks another setback for the company, which just last week cut its 2025 profit and free cash flow outlook amid a steep decline in North American demand, especially for truck tires.

Michelin (OTCPK:MGDDF [https://seekingalpha.com/symbol/MGDDF]) (OTCPK:MGDDY [https://seekingalpha.com/symbol/MGDDY]) said third-quarter sales slipped year over year, citing a difficult operating environment that has intensified competition across markets. While demand in China showed signs of recovery, the improvement was not enough to offset weaker sales in North America, where volumes remain under pressure.

MORE ON COMPAGNIE GÉNÉRALE DES ÉTABLISSEMENTS MICHELIN SOCIÉTÉ EN COMMANDITE PAR ACTIONS

* Michelin: A Strong Franchise Business Despite Weak H1 Earnings [https://seekingalpha.com/article/4821362-michelin-a-strong-franchise-business-despite-weak-h1-earnings]
* Compagnie Générale des Établissements Michelin Société en commandite par actions 2025 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4804216-compagnie-generale-des-etablissements-michelin-societe-en-commandite-par-actions-2025-q2]
* Compagnie Générale des Établissements Michelin Société en commandite par actions (MGDDF) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4804215-compagnie-generale-des-etablissements-michelin-societe-en-commandite-par-actions-mgddf-q2]
* Michelin lowers forecast on slower North America sales, dollar weakness [https://seekingalpha.com/news/4503674-michelin-lowers-forecast-on-slower-north-america-sales-dollar-weakness]
* Historical earnings data for Compagnie Générale des Établissements Michelin Société en commandite par actions [https://seekingalpha.com/symbol/MGDDY/earnings]