Continental Achieves Full-year Targets at Group Level and in Tires – ContiTech’s Earnings Below Expectations
Preliminary Figures for Fourth Quarter and Fiscal 2025
- Group and Tires: sales and EBIT margin within guidance range
- ContiTech’s earnings fall short of expectations due to weak markets
- CFO Roland Welzbacher: “We achieved our full-year targets at the Continental Group level and in Tires. By contrast, ContiTech’s earnings in the fourth quarter fell short of our expectations due to the persistently weak market environment”
- On track: structured sales process for ContiTech initiated as planned; closing of the sale of Original Equipment Solutions (OESL) targeted for the first quarter of 2026
Hanover, Germany, January 21, 2026. Continental today released preliminary figures for the fourth quarter and for fiscal 2025. The company achieved its full-year targets for sales and adjusted EBIT margin at the Continental Group level and in the Tires group sector. The same applies to the adjusted free cash flow for the Continental Group. However, the ContiTech group sector’s adjusted EBIT margin was below the targeted range.
“We achieved our full-year targets at the Continental Group level and in Tires. By contrast, ContiTech’s earnings in the fourth quarter fell short of our expectations, particularly due to the persistently weak market environment. In addition, some of the measures to safeguard earnings will only take effect from 2026 onward,” said Roland Welzbacher, Continental’s chief financial officer. He continued: “Nevertheless, this does not affect our plans to sell ContiTech this year. Today’s highly dynamic markets confirm that our focused, decisive approach is the right course of action. Strong interest from potential buyers confirms ContiTech’s value and potential.”
As announced, Continental aims to sell the ContiTech group sector in 2026. Internal preparations have been completed, the market outreach phase has been concluded, and the structured sales process will begin this month, as announced. At the end of August 2025, the sale agreement for ContiTech’s Original Equipment Solutions (OESL) business area was signed. Continental expects the sale to be completed in this quarter, after receiving regulatory approval.
Continental: sales and adjusted EBIT margin as expected
Based on initial preliminary and unaudited figures, the key financial figures for the fourth quarter and fiscal 2025 are as follows:
Continental’s sales amounted to around €5.0 billion in the fourth quarter and around €19.7 billion for fiscal 2025 (guidance: €19.5 billion to €21.0 billion). The adjusted EBIT margin is expected to be around 10.9% in the fourth quarter and around 10.2% for fiscal 2025 (guidance: around 10.0% to 11.0%).
In the Tires group sector, sales amounted to around €3.6 billion in the fourth quarter. Continental expects sales of around €13.8 billion for fiscal 2025 (guidance: €13.5 billion to €14.5 billion). The adjusted EBIT margin is expected to be around 14.3% in the fourth quarter, particularly due to positive mix effects and further cost optimizations. For fiscal 2025, the company therefore expects an adjusted EBIT margin of around 13.6% (guidance: around 12.5% to 14.0%).
In the ContiTech group sector, the DAX-listed company expects sales of around €1.4 billion in the fourth quarter and around €6.0 billion for fiscal 2025 (guidance: €6.0 billion to €6.5 billion). Before the application of IFRS 5, Continental expects an adjusted EBIT margin of around 2.0% in the fourth quarter and around 4.9% for fiscal 2025 (guidance: around 6.0% to 7.0%).
Adjusted free cash flow for the Continental Group is expected to be around €1.0 billion in the fourth quarter and just under €1.0 billion for the full fiscal year (guidance: around €0.6 billion to €1.0 billion).
The preliminary financial figures for fiscal 2025 will be published on March 4, 2026. The annual report for fiscal 2025 will be published on March 19, 2026.
