Michelin Cie Gen Unsp/Adr (MGDDY) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Ladies and gentlemen, welcome to the Michelin Conference Call. I now hand you over to Mr. Yves Chappell, General Manager and Group CFO. Please go ahead, sir. Thank you very much. Good evening, ladies and gentlemen. So I will have the pleasure to share with you our sales figures for the first quarter of 2026 and try to give a little bit of color about our performance business going forward. For this meeting, I am accompanied by Benedict de Bonchose, who is going to take over as a group CFO from June 1st. But I will handle the presentation. So first, the quarter, the first quarter of 2026 started slightly better than what we were expecting. The group is posting stable revenue at ISO Forex. We have 3% growth in the volumes sold at the machine brand in all our replacement markets across all our business segments. The free M&A operation that we have announced at the end of 2025, early 2026, are going well on completion, and two acquisitions have been already closed at the moment I'm speaking. The Kool-Aid group is integrated for two months over the first quarter, and the Flexitalic will be integrated in the group figures from the first of April. Nevertheless, the context in the Middle East has dispelled a shadow over the year to go. And at this stage, it's very difficult for us to assess the precise impact on our businesses, except one certainty, which is the increasing cost of energy and raw material, which is going to impact our costs. But in this context, we have not changed our guidance for the full year. And I will come back at the end of the meeting over the elements that lead us to maintain this guidance. Looking first at the market, the market in the first quarter of 2026 were negative as expected, particularly the original equipment market. The passenger car tire...