Continental Aims for Increased Earnings and Realignment Completion by 2026

Continental has set its sights on achieving higher earnings and completing realignment in 2026. Despite a slight decrease in consolidated sales to €19.7 billion (compared to €20.1 billion in 2024), the company experienced organic growth of 0.8 percent. Adjusted EBIT also saw a decrease to €2.0 billion from €2.2 billion in 2024, with an adjusted EBIT margin of 10.3 percent, down from 11.0 percent the previous year. However, net income before non-cash special effects reached €1.1 billion, and the adjusted free cash flow increased to €959 million, a significant improvement from €598 million in 2024.

CEO Christian Kötz emphasized the company’s success in achieving its targets in 2025 and reaching important milestones in its realignment process. CFO Roland Welzbacher also acknowledged the challenging market environment but highlighted the company’s strong position and strategic initiatives to improve earnings. The company proposed a dividend of €2.70 per share, up from €2.50 per share in 2024. In addition, Continental awarded a bonus to all employees worldwide to celebrate their collective achievements.

Looking ahead to 2026, Continental remains optimistic about its prospects for higher earnings despite continued market volatility. The company anticipates growth in the premium tire segment for 18-inch-plus tires, a potential decrease in raw material prices, and a recovery in industrial markets in the latter half of the year. Continental also expects positive outcomes from its efforts to enhance earnings, particularly in the ContiTech sector. However, trade barriers and other economic factors present ongoing challenges.

For the fiscal year 2026, Continental projects consolidated sales in the range of €17.3 to €18.9 billion and an adjusted EBIT margin between 11.0 and 12.5 percent. The company also forecasts an adjusted free cash flow of around €0.8 to €1.2 billion. These expectations are based on the company’s strategic initiatives and market conditions, which while challenging, provide opportunities for growth and profitability.

Continental’s commitment to sustainable practices and innovative solutions underscores its position as a leading tire manufacturer and industry specialist. The company’s focus on developing safe, convenient, and eco-friendly products for automotive and industrial customers worldwide continues to drive its success and position it as a respected industry leader. Through its dedication to excellence and forward-thinking approach, Continental remains at the forefront of the automotive and industrial sectors, poised for continued growth and success in the years to come.