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Sector benchmark • Industry

Tire Benchmark 2025: 8 global players at the time of the Aumovio spin-off and the Dunlop transfer

Michelin, Bridgestone, Goodyear, Continental, Pirelli, Hankook, Yokohama, Sumitomo Rubber, 8 giants scrutinised across 4 angles: financial, market, operational, ESG. Public data FY2025 and H1 2025.

8
players analysed
~0 Md$
global tire market
0+
KPIs compared per player
−4,8 %
French TC4 volumes 2025
Section 1 · Context

A global market being reshaped

US tariffs, electric transition, premium shift to ≥18 inches: the tire industry, worth over US$200bn, is going through a deep transformation where the rules of the game are being rewritten.

Volumes are down, but value is holding up. In 2025, most Western majors saw their volumes decline, hurt by falling Original Equipment (OE) demand in North America and US import tariffs (25% on all imported tires since April 2025, 150% on Chinese tires). Yet profitability is holding, and even improving, thanks to a premium product mix (≥18-inch tires, EV tires) and remarkable pricing discipline across most players.

Two structuring events are redrawing the map in 2025. First: the Continental Aumovio spin-off (automotive/ADAS) in September 2025, the group becomes a tire-led entity (tires + ContiTech), with a future separation of ContiTech under review. Second: the transfer of ex-US Dunlop rights from Goodyear to Sumitomo Rubber (~US$0.7bn, closed in 2025), which redistributes a major brand asset between two top-10 players.

Asia is gaining ground. Hankook, Yokohama and Chinese players (ZC Rubber, Linglong, Sailun) are winning market share, particularly in the replacement segment. Hankook has completed the rebuild of its Daejeon plant after the 2023 fire and continues investing in EV-tire capacity in the United States (Tennessee). Yokohama is digesting the Goodyear OTR acquisition (2023), with synergies now materialising.

🚗
Premium mix ≥18 inches
Premium tires ≥18 " now account for a growing share of leaders' revenue. Pirelli (15.4% OP margin) and Michelin (12.5%) are reaping the full benefit.
EV tires
The EV-tire market is expected to grow from ~US$4bn (2025) to ~US$30bn (2035). Dedicated capacity is being invested at Michelin, Bridgestone, Continental and Hankook.
🛃
US tariffs
Strong impact on Asian manufacturers exporting to the US. Relocations are accelerating (Hankook Tennessee, Pirelli Georgia, Yokohama Mississippi).
Section 2 · Overview

Eight giants, eight strategies

Western leader in transformation, quiet Japanese champion, American turnaround, German spin-off, Italian ultra-premium, Korean premium push, Japanese OTR consolidator, strategic Dunlop buyer: the panel spans the full global dynamic.

Michelin
Euronext Paris · ML
FY2025 revenue~27,1 Md€
OP margin~12,5 %
RatingA− / A3
Headcount~128 000
"Leader in transformation", French footprint rationalisation, "Michelin in Motion 2030" plan.
Details ↓
Bridgestone
Tokyo · 5108
FY2025 revenue~¥4 450 Md
OP margin~11,6 %
RatingA / A2
Headcount~130 000
"The quiet giant", premium pivot, LaVergne TN plant closure.
Details ↓
Goodyear
NYSE · GT
FY2025 revenue~18,5 Md$
OP margin~7,3 %
RatingB+ / B1
Headcount~68 000
"Turnaround in progress", Goodyear Forward plan, ex-US Dunlop disposal to SRI.
Details ↓
Continental
Xetra · CON
FY2025 revenue~20,5 Md€
OP margin~9,8 %
RatingBBB / Baa2
Headcount~100 000
"Aumovio spin-off", tire-led entity since Sept. 2025, ContiTech carve-out under review.
Details ↓
Pirelli
Borsa Italiana · PIRC
FY2025 revenue~6,8 Md€
OP margin~15,4 %
RatingBBB− / Baa3
Headcount~31 500
"The ultra-premium", highest margin in the panel, Sinochem/Camfin governance to watch.
Details ↓
Hankook
KOSPI · 161390
FY2025 revenue~KRW 9,5 T
OP margin~14,2 %
RatingBaa2 / BBB
Headcount~22 000
"Asian premium push", Daejeon rebuilt, US EV capex, Hanon integration.
Details ↓
Yokohama
Tokyo · 5101
FY2025 revenue~¥1 250 Md
OP margin~12,4 %
RatingA (R&I)
Headcount~32 000
"The OTR consolidator", Goodyear OTR + Trelleborg Wheel Systems synergies.
Details ↓
Sumitomo Rubber
Tokyo · 5110
FY2025 revenue~¥1 450 Md
OP margin~5,5 %
RatingA (R&I) / AA−
Headcount~39 000
"The strategic buyer", ex-US/ex-Japan Dunlop acquisition, R.I.S.E. 2030 plan.
Details ↓
Section 3 · Financial

Eight financial profiles, three profitability tiers

Revenue, operating margin, net income, dividend: the ranking reveals three distinct groups, ultra-premium (Pirelli, Hankook), premium (Michelin, Bridgestone, Yokohama), in transformation (Continental, Goodyear, Sumitomo).

FY2025 indicator Michelin Bridgestone Goodyear Continental Pirelli Hankook Yokohama Sumitomo
Revenue (local currency)27,1 Md€¥4 450 Md18,5 Md$20,5 Md€6,8 Md€KRW 9,5 T¥1 250 Md¥1 450 Md
Revenue (€bn, estimated)27,1~27,0~17,220,56,8~6,4~7,6~8,8
EBIT / OP~3,4 Md€~¥515 Md~1,35 Md$~2,0 Md€~1,05 Md€~KRW 1,35 T~¥155 Md~¥80 Md
OP margin12,5 %11,6 %7,3 %9,8 %15,4 %14,2 %12,4 %5,5 %
Net income~1,9 Md€~¥340 Md~0,45 Md$~1,1 Md€~0,5 Md€~KRW 0,95 T~¥95 Md~¥40 Md
FY2024 dividend (per share)1,38 €¥2200 (suspended)2,20 €0,25 €KRW 700¥115¥50
Credit ratingA− / A3A / A2B+ / B1 / BB−BBB / Baa2BBB− / Baa3Baa2 / BBBA (R&I)A (R&I) / AA−
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What the table tells us

Pirelli leads on profitability (15.4% OP margin). Exclusive exposure to the ultra-premium segment (≥19 ") and pricing discipline protect the margin despite limited volumes. Hankook follows at 14.2%, driven by its premium push and a favourable geographic mix.

Michelin (12.5%) and Yokohama (12.4%) form a solid premium pack, followed by Bridgestone at 11.6%. Continental, at 9.8%, remains under pressure, its post-Aumovio transformation will need to prove its additional margin potential.

Goodyear (7.3%) and Sumitomo (5.5%) sit at the bottom of the ranking. Goodyear is executing its "Forward" plan with disposals (ex-US Dunlop, chemicals) to reduce debt and rebuild margin. Sumitomo is absorbing the ex-US/ex-Japan Dunlop acquisition (~US$0.7bn) with its R.I.S.E. 2030 plan to restore profitability.

The rating gap remains significant. Michelin (A−) and Bridgestone (A / A2) are the only ones in the A category. Goodyear (B+/B1) remains in speculative territory, its bondholders are paying dearly for the execution risk of Goodyear Forward.

Section 4 · Operational

Market share, volumes, OE/replacement mix

Market share (Tire Business 2024) shapes the top of the ranking, but it is the OE/replacement mix and relocation capability that make the operational difference in 2025-2026.

Indicator Michelin Bridgestone Goodyear Continental Pirelli Hankook Yokohama Sumitomo
Global market share 2024 (Tire Business)14,1 %13,6 %9,6 %6,9 %4,0 %~3,5 %~3,0 %~2,5 %
Production sites121~75~55~30~18~8~15~15
Countries with industrial footprint26242218124109
OE mix (estimated)~25 %~22 %~24 %~24 %~35 %~35 %~28 %~20 %
Replacement mix~75 %~78 %~76 %~76 %~65 %~65 %~72 %~80 %
Captive distributionEuromaster (2,460 EU centres)FirstStop / CockpitGoodyear Auto Service (US)BestDriveN/A (selected boutiques)N/AN/AN/A
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FY2025 operating margin (%)
Pirelli
15,4 %
Hankook
14,2 %
Michelin
12,5 %
Yokohama
12,4 %
Bridgestone
11,6 %
Continental
9,8 %
Goodyear
7,3 %
Sumitomo
5,5 %
Global market share 2024 (%)
Michelin
14,1 %
Bridgestone
13,6 %
Goodyear
9,6 %
Continental
6,9 %
Pirelli
4,0 %
Hankook
3,5 %
Yokohama
3,0 %
Sumitomo
2,5 %

Operational read-across

The top 4 account for 44% of the global market. Michelin and Bridgestone remain neck and neck. Goodyear holds the #3 spot despite its ongoing transformation. Continental is moving down the operational slope towards its new post-Aumovio scope.

Pirelli and Hankook lead the ≥18 " OE battle. Their higher OE mix (~35%) and premium/high-value positioning allow them to capture value in high-end Original Equipment (Tesla, Porsche, BMW, Audi).

US relocations are accelerating. To circumvent tariffs, Hankook is investing in Tennessee, Pirelli in Georgia, Yokohama in Mississippi. Michelin and Bridgestone already benefit from a broad North American industrial footprint.

Section 5 · Markets

Market performance: wide dispersion, Pirelli and Hankook in the lead

Market cap, 1-year / 3-year performance, dividend yield and ratings: markets reward the Asian premium push and penalise profiles in transformation.

Indicator April 2026 Michelin Bridgestone Goodyear Continental Pirelli Hankook Yokohama Sumitomo
Share price (local currency)~33 €¥6 400~12 $~75 €~6,2 €KRW 55 000¥3 900¥1 700
Market cap (€bn, estimated)~23~27~3,2~15~6,2~4,3~3,8~2,7
1-year performance~−5 %~+5 %~+10 %N.M. post-spin~+10 %~+15 %~+5 %~+10 %
3-year performance~+15 %~+20 %~+15 %N.M.~+30 %~+45 %~+70 %~+40 %
Dividend yield~4,2 %~3,4 %0 %~2,9 %~4,0 %~1,3 %~3,0 %~2,9 %
Credit ratingA− / A3A / A2B+ / B1 / BB−BBB / Baa2BBB− / Baa3Baa2 / BBBA (R&I)A (R&I) / AA−
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Market read-across

Yokohama posts the best 3-year performance (~+70%), driven by Goodyear OTR synergies and the Trelleborg Wheel Systems integration, which make it an undisputed off-highway leader. Hankook (~+45%) and Sumitomo (~+40%) follow, powered by the premium push and strategic transactions (Dunlop).

Continental is an outlier: "N.M." post the Aumovio spin-off. Historical comparisons have been meaningless since September 2025, the current stock represents a new tire-led entity with a €15bn market cap, valued differently from an automotive conglomerate.

Goodyear, in speculative territory (B+/B1), is paying for its debt. Its dividend yield is zero (suspended since 2020) and its market rebound (~+10% over 1 year) mainly reflects execution of the Forward plan. Michelin, by contrast, is enduring a weak market year (−5%), penalised by French footprint rationalisation and declining North American OE volumes.

Section 6 · ESG

Climate commitments: ambition converges around 2050, execution diverges

Net Zero 2050 is the new industry norm. But intermediate milestones and investments in sustainable materials (≥50% recycled / bio-sourced tires) draw a dividing line between ESG leaders and followers.

Player Climate commitment SBTi validated Sustainable materials / circularity
MichelinNet Zero 2050✓ 1.5 °C100% sustainable materials by 2050
BridgestoneCarbon neutral 2050✓ 2030: −50% scope 1+2E8 Commitment (E: Energy, Environment, Extension…)
GoodyearNet Zero 2050✓ committedConcept-tire initiatives 90% sustainable
ContinentalCarbon neutral ops 2040 / Net Zero 2050✓ committedGrowing renewable / recycled materials share
PirelliCarbon neutral ops 2030✓ 1.5 °CP Zero FSC tires (certified natural rubber)
HankookNet Zero 2050✓ committedEco-design, on-site hydrogen
YokohamaCarbon neutral 2050✓ 1.5 °CiON EV line, bio-sourced materials
SumitomoCarbon neutral 2050N/A"SMART TYRE" technology concept
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Three ESG positionings

Pirelli stands out with operational ambition. Carbon neutral operations as early as 2030 (vs 2050 for most), backed by ESG discipline aligned with its ultra-premium positioning. Michelin targets 100% sustainable materials by 2050, the panel's most ambitious circularity goal.

Yokohama is rapidly gaining ground with its iON EV line and strong bio-sourced initiatives, combined with the OTR acquisition (mining equipment tires, a segment where sustainability carries growing economic value as mining decarbonises).

Sumitomo remains the most discreet on its SBTi trajectory. Its ESG communication is built around the "SMART TYRE" concept, but the absence of SBTi validation places it at the back of the pack on scientific credibility.

Section 7 · Positioning

Eight strategies, eight responses to the same cycle

For each player: strengths, weaknesses, 2025-2026 trajectory and key watch-point for an investor or an industrial partner.

MichelinML
+

Strengths

  • Global leader on market share (14.1%) and industrial footprint (121 sites, 26 countries).
  • OP margin of 12.5% on €27bn of revenue, remarkable pricing discipline.
  • A− (S&P) / A3 (Moody's) rating, the panel's most competitive access to long-term funding.
  • Euromaster captive distribution, 2,460 EU centres, a strategic asset.
  • ESG leader (SBTi 1.5 °C, 100% sustainable materials by 2050).

Weaknesses

  • Heavy exposure to a slowing European market.
  • Weak 1-year market performance (~−5%).
  • French footprint rationalisation (Cholet, Vannes closures) costly on social-image terms.

Strategy 2025-2026

  • "Michelin in Motion 2030" plan, premium push and services.
  • Acceleration in beyond-tire segments (high-performance technologies).
  • Selective investments in EV tires and the premium ≥18 " segment.
  • Dividend maintained (~€1.38, yield ~4.2%).

Watch-point

  • The transition to services / beyond-tire activities must deliver a compelling ROIC, otherwise the business remains a pure-tire play under US-tariff pressure.
Bridgestone5108
+

Strengths

  • Global market share of 13.6%, neck and neck with Michelin.
  • A (S&P) / A2 (Moody's) rating, excellent access to capital.
  • Highest market cap in the panel (~€27bn).
  • Premium pivot underway with closures of low-end plants (LaVergne TN).

Weaknesses

  • Less assertive communication than Michelin / Pirelli, a "quiet" group.
  • Significant US/Europe exposure against a backdrop of volume contraction.

Strategy 2025-2026

  • Continued premium pivot, gradual exit from OTR retreading assets.
  • Investments in EV tires and mobility solutions.
  • ¥220 dividend maintained.

Watch-point

  • The premium transformation requires giving up volume capacity. The 3-year execution risk deserves close monitoring.
GoodyearGT
+

Strengths

  • Iconic brand, strong position in the North American market.
  • "Goodyear Forward" plan underway, ex-US Dunlop disposal (US$0.7bn) and chemicals.
  • Market rebound of ~+10% over 1 year.
  • CEO Mark Stewart (2024) perceived as a credible executor.

Weaknesses

  • OP margin of 7.3%, the lowest alongside Sumitomo.
  • B+ (S&P) rating, speculative category, high cost of debt.
  • Dividend suspended since 2020, yield = 0%.
  • Loss of the ex-US Dunlop brand asset (transferred to SRI).

Strategy 2025-2026

  • Completion of Goodyear Forward disposals to reduce debt.
  • Repositioning on value-added segments (EV, high performance).
  • Dividend restoration conditional on a reduction in leverage.

Watch-point

  • Forward plan success depends on the timing of a North American OE-cycle upturn. A fresh cyclical shock would compromise the deleveraging trajectory.
Continental AG (post Aumovio spin-off)CON
+

Strengths

  • Aumovio spin-off completed in Sept. 2025, the group is now a readable tire-led entity.
  • OP margin of 9.8% on €20.5bn (Tire + ContiTech).
  • BBB / Baa2 rating, good access to credit.
  • BestDrive captive distribution in Europe.

Weaknesses

  • Post-spin market history "N.M.", no readable track record.
  • ContiTech segmentation still in place, future separation under review.
  • Margin below premium leaders (Pirelli 15.4%, Michelin 12.5%).

Strategy 2025-2026

  • Consolidate the new tire-led narrative with investors.
  • Review a ContiTech separation (option considered by management).
  • Dividend of €2.20 per share maintained.

Watch-point

  • Continental's transformation into a pure-tire play will succeed if the margin converges to 11-12% by 2027. A further ContiTech separation would heighten tire exposure, with increased cyclical risk.
PirelliPIRC
+

Strengths

  • OP margin of 15.4%, panel leader.
  • Exclusive ultra-premium positioning (≥19 " tires).
  • 3-year market performance ~+30%.
  • Carbon neutral operations as early as 2030, the fastest ESG ambition in the panel.

Weaknesses

  • Modest size (€6.8bn revenue), limited scale effect.
  • Governance under strain: Sinochem (ChemChina) vs Camfin dispute since 2023.
  • BBB− (S&P) rating, low investment-grade category.

Strategy 2025-2026

  • 2025-27 industrial plan: focus on ≥19 " High-Value, mitigation of US tariffs (Georgia site).
  • €0.25 dividend stable.
  • Gradual resolution of the governance dispute.

Watch-point

  • Resolving the Sinochem/Camfin dispute is a prerequisite for any strategic acceleration. As long as it persists, shareholder visibility weighs on valuation.
Hankook Tire & Technology161390
+

Strengths

  • OP margin of 14.2%, 2nd in the panel.
  • 3-year market performance ~+45%.
  • Successful Daejeon rebuild after the 2023 fire.
  • Growing premium OE positioning (Tesla, BMW, Audi).

Weaknesses

  • Limited industrial footprint (~8 sites, 4 countries), concentration risk.
  • Low dividend yield (~1.3%), investment priority.
  • Hanon Systems integration (OEM acquisition) still to be digested.

Strategy 2025-2026

  • Major capex in Tennessee (EV-tire), Hungary, Indonesia.
  • Global premium OE push, EV tires.
  • Operational integration of Hanon Systems.

Watch-point

  • Absorbing Hanon Systems is a management test. An execution slip would weigh on margin and rating.
Yokohama Rubber5101
+

Strengths

  • 3-year market performance ~+70%, panel leader.
  • OP margin of 12.4%.
  • Goodyear OTR acquisition (2023) delivering synergies in 2025.
  • Off-highway leader with the Trelleborg Wheel Systems integration.
  • Dedicated iON EV line.

Weaknesses

  • Modest global market share (~3.0%).
  • Concentrated Japan / Asia exposure.

Strategy 2025-2026

  • Leverage the off-highway mix (OTR + TWS), a premium segment as mining decarbonises.
  • Acceleration of the iON EV line.
  • ¥115 dividend maintained.

Watch-point

  • Success depends on the ability to sustain OTR / TWS margins against rising Chinese competition in construction equipment.
Sumitomo Rubber Industries5110
+

Strengths

  • Ex-US/ex-Japan Dunlop acquisition (~US$0.7bn, 2025), an additional global brand.
  • R&I A / JCR AA− rating.
  • Clear "R.I.S.E. 2030" plan.
  • 3-year market performance ~+40%.

Weaknesses

  • OP margin of 5.5%, last in the panel.
  • Buffalo (NY) closure underway, painful US restructuring.
  • No public SBTi validation.

Strategy 2025-2026

  • Integration of ex-US / ex-Japan Dunlop rights and distribution synergies.
  • R.I.S.E. 2030 plan to restore margin towards ~8%.
  • ¥50 dividend maintained.

Watch-point

  • The margin turnaround depends on the Dunlop integration + Buffalo closure. Any slip in timing or US restructuring costs would hurt credibility.
Section 8 · Synthesis

What this benchmark tells us

Five dimensions, eight players, a cross-cutting read. Nexelys rating from 1 to 5 stars based on the public data analysed.

Player Financial strength Profitability ESG / climate Market momentum Strategic potential
Michelin
Bridgestone
Goodyear
Continental
Pirelli
Hankook
Yokohama
Sumitomo
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1
The centre of gravity is shifting towards Asia
Hankook, Yokohama and Sumitomo post the panel's best 3-year market performances (+45 to +70%). The premium OE push + US capex (Hankook Tennessee, Pirelli Georgia, Yokohama Mississippi) are reshaping the industrial map. Michelin and Bridgestone remain on top, but the gap is narrowing.
2
Two transactions redraw the top 8
The Aumovio spin-off makes Continental readable as a tire-led entity (€20.5bn of revenue). The ex-US Dunlop transfer from Goodyear to Sumitomo redistributes a major brand asset. These two structuring events change the comparables to 2026-2027.
3
Profitability is decided on the ≥18 " mix and EV
Pirelli (15.4%) and Hankook (14.2%) dominate margin thanks to their premium OE mix. Michelin, Yokohama and Bridgestone follow in the 11-13% pack. Goodyear and Sumitomo are under margin pressure and must prove their turnaround trajectory.
Section 9 · Methodology

How we built this benchmark

This benchmark relies exclusively on public data from FY2025 annual reports (published Q1 2026), investor presentations and press releases from the eight players. The 2024 market-share ranking comes from Tire Business (August 2025 release). Market performances are calculated as of 20 April 2026. Figures marked "~" indicate approximated data or estimates drawn from half-year reports. "N.C." (non communiqué) flags information not publicly available.

Currency conversions use mid-April 2026 spot rates. Aggregates are not systematically restated for the post-Aumovio scope (Continental) or the post-Dunlop disposal (Goodyear), each figure reflects the perimeter reported by the company at publication.

Main sources

Sector glossary

OE (Original Equipment)
Tires fitted at the factory on new vehicles. Lower margins, but a strong "prescription" effect on the replacement market.
Replacement
Sales to consumers and fleets post-OE. The most profitable segment and the pricing core of the majors.
TC4 (Passenger + LCV + 4×4 + SUV)
Passenger + Light Commercial Vehicle + 4×4 / SUV. The industrial segmentation most widely used in France.
TBR (Truck & Bus Radial)
Truck and Bus Radial, heavy-truck tires.
OTR (Off-The-Road)
Off-The-Road, tires for construction and mining equipment.
Market share
Market share (usually by value of tire sales).
EBIT / Operating Profit
Operating profit before interest and tax.
SBTi (Science-Based Targets initiative)
Science-Based Targets initiative, scientific validation of CO₂ reduction commitments.
Go further

Anticipate sector movements with Nexelys

This benchmark provides a snapshot of the global tire landscape. To anticipate sector movements 3, 6 and 12 months ahead, Nexelys publishes monthly sector dashboards including:

  • French TC4 and TBR volume forecasts at 3, 6 and 12 months
  • Leading indicators on OE (automotive) and replacement demand
  • Raw-material price tracking (natural rubber, butadiene, carbon black)
  • Alerts on major competitive moves (M&A, spin-offs, restructurings)
  • Impact analysis of US tariffs on import flows