Michelin's Share Trading Disclosure
Michelin Discloses Details of Its Securities Repurchase Program on June 11, 2026
Anonymous
Michelin filed its latest share buyback disclosure on June 11, 2026, revealing weekly trading in its own stock as part of a sweeping €2.0 billion repurchase program running through 2028. The filing, required under European Market Abuse Regulation, confirms the French tire giant is pressing ahead with its capital return strategy even as currency headwinds and a softening auto market weigh on earnings Yahoo Finance.
The disclosure covers activity during the preceding week and is part of a €750 million active tranche launched on March 2, 2026. That tranche runs through November 27, 2026, and is managed by three banks: Natixis, BNP Paribas, and Société Générale MarketScreener.
A €2 Billion Buyback Born From Profit Pain
Michelin unveiled the €2 billion program on February 11, 2026, the same day it reported a 14% slump in operating profit. CEO Florent Menegaux called the buyback a sign of "confidence in future cash flows" despite what he described as "unstable" tire markets hit by customs tariffs Yahoo Finance. The stock jumped 6% on the day of the announcement, showing investors welcomed the cash return story.
The company generated €2.1 billion in free cash flow in 2025, giving it the firepower to buy back shares while also cutting debt by €600 million. Fitch Ratings affirmed Michelin's 'A' credit rating in March 2026, calling the buyback "sustainable" given that strong cash generation MarketScreener.
Weekly Trading Numbers Reveal Steady Repurchase Pace
Recent filings show the pace of buying. On May 14 alone, Michelin repurchased 214,275 shares at a weighted average price of €30.54. The week of June 4 saw 650,941 shares bought at an average of €30.16 Yahoo Finance. Michelin's shares have traded between €30.16 and €32.69 during the second quarter of 2026.
All repurchased shares are earmarked for cancellation. Canceling shares reduces the total share count — currently around 687.6 million — which automatically lifts earnings per share for remaining investors. That math is simple: fewer shares means each one gets a bigger slice of profits MarketScreener.
Currency and Tariff Headwinds Cloud the Outlook
The buyback is running against a tough backdrop. Michelin reported a 5.4% drop in Q1 2026 reported sales, driven largely by a weak US dollar. Analysts at Jefferies warned that 2026 operating income could land 10% below market consensus, with a projected €150 million foreign exchange hit and a further €120 million impact from trade tariffs Yahoo Finance.
CFO Yves Chapot, who plans to step down at the end of his term, said the program stays "flexible" to leave room for potential acquisitions. His proposed successor, Philippe Jacquin, will inherit the job of balancing shareholder returns against spending on new industrial sectors MarketScreener.
Michelin Bets on Polymers and Space as Tires Slow
The buyback buys time for a deeper transformation. Michelin is pivoting away from pure tire-making toward what it calls "Polymer Composite Solutions" — high-tech materials used in aerospace and by clients including SpaceX. The company started reporting this as a standalone business segment in Q1 2026 Yahoo Finance.
Shareholders approved the strategic direction at the Annual General Meeting on May 22, 2026, in Clermont-Ferrand. They also renewed Menegaux's term as CEO. The buyback, the dividend — held steady at €1.38 per share — and the tech pivot together form what management calls the "Michelin in Motion 2030" plan MarketScreener.
Sentiment
NeutralNEGATIVENEUTRALPOSITIVE
Publishers
5
Articles
4
Reach
5
A
AnonymousAuthor
