A Michelin factory on the outskirts of Olsztyn, Poland. (Damian Lemański/Bloomberg)
February 11, 2026 3:33 PM, EST
Michelin plans to buy back as much as 2 billion euros ($2.4 billion) worth of shares, as the French company seeks to keep investors on side with its tire business under pressure.
The buyback will start this year and run until 2028, Michelin said Feb. 11. The tiremaker will be flexible if it needs funding for larger transactions, Chief Financial Officer Yves Chapot said on a media call.
Like its rivals, Michelin has been feeling the strain from a slowdown in tire demand and intense competition from lower-priced Chinese rivals. Analysts at Bernstein earlier this month flagged the need for Michelin to commit to cash returns to keep investors on board.
To weather the tougher tire environment, the company has been pushing into polymer composites, such as inflatable shelters for the army and textiles used in space. Elon Musk’s SpaceX is among its clients. It’s also been working on a new generation of glue that doesn’t use harmful molecules.
The company’s spending about 1 billion euros on three deals announced recently to grow in composite polymers, Chapot said. Michelin hadn’t previously disclosed financial details for the three transactions, the latest of which was Flexitallic, a U.S. specialist in seals and gaskets. Deals remain a priority, CEO Florent Menegaux said in a separate call.
Medical devices are another growth area. A string of previous purchases had already allowed Michelin to develop implantable material that enables the repair, recovery and regeneration of human tissue.
The company generated free cash flow before acquisitions of 2.1 billion euros last year.
Michelin will start reporting results for its composite polymers business as of this year.
