Compagnie Generale des Etablissements Michelin SCA

Solid H1 2026 performance despite a tough macro backdrop - Management called results “solid”: slight revenue growth translated into significant segment operating income (SOI) progression of > €100m (at constant FX and scope) vs H1 2025. - Revenue: €12.7bn reported (-2.6% YoY), but +0.5% YoY at constant FX, showing resilience. - SOI: €1.45bn, +0.3pp margin to 11.4% (SOI up €103m (+7%) at constant FX/scope), supported by better execution and pricing/mix + raw-material tailwind (partly offset by cost inflation and FX).

Turning point in tires + strong momentum in polymer composite solutions (with M&A impact) - Tires: “Q2 was marked a turning point,” specifically “back to growing in tires.” - Replacement strength: Michelin brand posted material growth and share gains in most replacement markets. - Polymer composite solutions: integrating 3 acquisitions (KoneGroup & Flexitallic closed in H1; Tex Tech closed in July) aligned with strategy to broaden polymer composites. - Management expects these deals to increase polymer composite solutions revenue by ~35% on a full-year basis. - Operationally, most polymer categories grew; conveyors remained the main drag (low cycle; Australia weak; North America affected by destocking/cash management at distributors/customers).

Guidance reaffirmed: growth + cash flow target intact, but geopolitical/currency risks remain - Full-year guidance confirmed: Michelin expects segment operating income at constant exchange rates and scope to exceed 2025 levels. - Free cash flow: reaffirmed objective of > €1.6bn free cash flow before M&A (with H1 FCF positive: €282m). - Tire market outlook for H2 (directional): - Passenger car: OE expected to be more negative in H2 than H1 (China less negative than other regions, but still negative). - Trucks: OE expected to improve (notably North America recovery) and H2 “significant growth” expected in tires. - Specialties: mining supportive; aircraft depends on geopolitics; Beyond Road infra/defense growing; agriculture “stuck” in a long downturn. - Key risk scenario (Middle East conflict): management kept assumptions broadly unchanged; a launch disruption could add ~€400m of additional cost inflation (raw materials/energy/logistics). They emphasized mitigation via pricing/vertical integration/local-to-local.