Michelin stands out near the top of the CAC 40 leaderboard with a gain of 5.28%, reaching 34.08 euros. The group managed to limit the damage, notably by announcing a sequential improvement in its activity for the fourth quarter of 2025, and is benefiting from the announcement of a 2 billion euro share buyback program.
Analysts at Jefferies were disappointed by the Clermont-Ferrand-based group's results and forecasts. They estimate that the latter are 10% below consensus. They also perceive a certain "conservatism" regarding both pricing and volumes, and 2025 results came in below expectations. However, the American investment bank still sees value to be unlocked (cyclical recovery, pricing power, and operational leverage), but rather for 2027.
Their recommendation is to buy Michelin shares, with a target price reduced from 38 to 35 euros.
For its part, UBS maintains a neutral stance, targeting 30 euros. Analysts at the Swiss bank particularly appreciated the second-half EBIT, which came in slightly better than expected. They also highlight that the announcement of a share buyback exceeding 1 billion euros should be perceived positively.
Compagnie générale des établissements Michelin stated, confident in its cash generation, that it is launching a share buyback program of up to 2 billion euros for the 2026-2028 period.
For the current fiscal year, the group is targeting growth in its segment operating income at constant scope and exchange rates, and aims for free cash flow before M&A (mergers and acquisitions) of more than 1.6 billion euros.
Compagnie Générale des Etablissements Michelin is one of the world leaders in manufacturing and marketing of tires. Net sales break down by activity as follows:
- sale and distribution of tires: mainly replacement tires, long-distance transport tires, specialty tires (for agricultural and civil engineering machinery, aircraft, etc.) and original equipment tires for passenger cars and two-wheels;
- development of connected solutions: offers adapted to the new economic, human and environmental challenges of fleet managers and other public or private mobility players, offers to accompany travel and journeys (Michelin and Robert Parker gastronomic guides, tourist guides and applications such as ViaMichelin);
- development of polymer composite solutions: high-tech solutions in the fields of seals, belts and technical fabrics, developed thanks to Michelin's unique expertise in the physics and chemistry of materials, and aimed at a variety of sectors such as mobility, construction, aeronautics, low-carbon energies and healthcare.
Net sales are distributed geographically as follows: France (9.8%), Europe (27.3%), Mexico and North America (36.7%) and other (26.2%).
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