Continental confirms ContiTech sale at Capital Market Day 2025
Frankfurt am Main, Germany – At its Capital Market Day, Continental AG confirmed its strategic decision to sell its ContiTech group sector in 2026, marking a pivotal step in the company’s transformation into a focused, high-margin tire manufacturer. The announcement follows the planned divestiture of ContiTech’s Original Equipment Solutions (OESL) business later this year.
Continental also presented a comprehensive mid-term outlook, outlining growth and profitability targets for the Continental Group and its remaining business sectors.
“For the first time in its history, Continental will become a pure-play tire manufacturer focused on value creation, profitability, cash flow and stable business development,” said CEO Nikolai Setzer. CFO Olaf Schick added, “We remain committed to our plan. Following the spin-off of Automotive, Continental will still have high upside potential. We are aiming to deliver an attractive shareholder return.”
Continental projects the following mid-term performance targets (3–5 years):
Continental Group: Sales of €19.5–22.0 billion; adjusted EBIT margin of 12.0–14.5%
Tires Sector: Sales of €14.5–16.0 billion; adjusted EBIT margin of 13.0–16.0%
ContiTech Sector (excluding OESL): Sales of €5.0–6.0 billion; adjusted EBIT margin of 11.0–13.0%
2025 Outlook Adjusted
Due to currency fluctuations and rising global trade barriers, Continental revised its 2025 outlook:
Continental Group: Sales of €19.5–21.0 billion; adjusted EBIT margin of 10.0–11.0%
Tires: Sales of €13.5–14.5 billion; margin of 12.5–14.0%
ContiTech: Sales of €6.0–6.5 billion; margin of 6.0–7.0%
Following the ContiTech sale, Continental plans to review the use of proceeds for a potential special dividend and share buybacks. The company also aims to increase its dividend payout ratio to 40–60% of net income, up from the previous 20–40%.
Continental’s tire business remains a cornerstone of its strategy, with strong global positioning, efficient megafactories, and a robust product portfolio. In 2024, car tires made up 77% of tire sales, with 76% of total tire revenue coming from the replacement market. The company sees significant growth potential in North America, Asia, and the ultra-high-performance tire segment.
ContiTech will sharpen its focus on industrial applications, which will account for 80% of its business post-OESL sale. The division serves a diverse customer base across sectors like mining, construction, and energy management. In 2024, ContiTech (excluding OESL) generated €4.5 billion in sales, with a balanced regional footprint.
Continental’s transformation reflects a strategic pivot toward resilience, profitability, and shareholder value, positioning the company for long-term success in the global tire market.