Michelin Cie Gen Unsp/Adr (MGDDY) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon and good evening. As a CEO, I wanted to introduce this conference and stand in front of you at this challenging moment for Mishnah. On Monday last week, we issued a profit warning. It came late in the year and with unexpected magnitude. I fully recognize it. I owe you clarity to help you understand what led us to warn this way. I won't elaborate much on the highly uncertain business context, you are fully aware of it. My purpose today is to share more of what is specific to us. First thing, until we got September financial results, we were in line with our expectations. But September business took a hit and forced us to drastically adjust the year-end forecast. What hit us had mostly to do with our North American business, which represents around 40% of our group sales. Two major causes. The first one, we decided to stop our operations with the largest tire wholesaler in the US as of 1st of July. This decision led to important volumes missing in Q3 versus last year. as we have been redirecting sales flows to other wholesalers. This one-off transition period should be behind us by year-end. Second, we lost market share due to the positioning of our offerings. We passed price increases at OE to restructure our margin and on replacement markets to offset cost inflators, starting with raw materials first, then EUDR, and then tariffs. This resulted in a decrease of a market share over Q3. For the replacement market, we took the lessons, we have already taken steps to regain these lost shares. Now, if we consider the current situation from a broader perspective, it results from a combination of our strategy being implemented and the context in which we operate. Our Michelin Emotion 2030 strategy is being deployed, and I have no doubt that it will lead to sub...