Michelin targets earnings growth as it navigates uncertainties in 2025

Milan, Italy - Michelin aims to increase profits in 2025 helped by a strategic roadmap designed to navigate the increasingly, uncertain global trading environment.

In a 25 March investors presentation in Milan, the French group said it expects full-year earnings (segment operating income) to surpass the 2024 level of €3.4 billion.

While the company expects growth in key markets and a recovery in OE demand, it remains cautious about the impact of international trade tariffs on its business.

In response, Michelin said it plans to capitalise on “targeted growth opportunities”, strengthen its product offerings, and reinforce local-production strategies.

Central to the group’s local-to-local strategy are its operations in the US, which generate one-third of the group’s overall revenue.

Headquartered in Greenville, South Carolina, Michelin North America employs 23,000 people and operates 35 production facilities across the US.

Of the sites, Michelin said, 20 are tire-related and 15 are focused on polymer solutions.

For 2025, Michelin predicts year-on-year growth of between -2% and 2% in the passenger car & light truck (PC/LT) market, with OE demand expected to recover.

The truck tire segment is projected to see growth of between -1% and 3% with a strong second-half recovery expected for the OE market.

Specialities, including mining, off-road and aircraft tires as well as polymer solutions, are, meanwhile, projected to post growth of between -1% and 3% year-on-year.

Here, Michelin said it expected positive trends for almost every unit but a decline in OE demand for off-road tires.