Continental targets higher earnings and completion of realignment in 2026

Hanover, Germany – Continental expects higher earnings in 2026 despite a continued volatile environment, driven by strong growth in the business for 18-inch-plus premium tires, an anticipated decline in the prices of raw materials and a projected recovery in industrial markets in the second half of the year. The company also expects positive effects from the measures taken to improve earnings, particularly in ContiTech. At the same time, the economic environment remains challenging due to ongoing trade barriers, among other factors. Overall, Continental expects consolidated sales of around €17.3 billion to €18.9 billion and an adjusted EBIT margin of around 11.0 to 12.5 percent. Adjusted free cash flow is expected to be around €0.8 billion to €1.2 billion.

As previously announced, Continental achieved its financial targets for sales and the adjusted EBIT margin for both the Continental Group and the Tires group sector in the past fiscal year. Net income before non-cash special effects amounted to €1.1 billion. On this basis, the Continental Executive Board is proposing a dividend of €2.70 per share. At the same time, Continental is expected to distribute a mid-double-digit million euro amount in profit-sharing bonuses to its employees worldwide.

“We achieved our targets for the Continental Group and for Tires in 2025, and reached key milestones in our realignment: the successful spin-off of Aumovio and the sale of OESL completed in February. This year, with the planned sale of ContiTech and Continental’s focus on the tire business, we’re entering the final stage of our strategic realignment,” said Continental CEO Christian Kötz at the annual press conference in Hanover on Wednesday.

“The fact that we’ve progressed so rapidly and successfully with our new setup in these volatile times is a tremendous achievement by our entire team. This is the Continental spirit we want to and will preserve. For this, I’d like to thank all our employees worldwide. Our employees will share in our operational success through our profit-sharing program,” he added.

Adjusted operating result (adjusted EBIT) of €2.0 billion
In the past fiscal year, Continental generated consolidated sales of €19.7 billion (2024: €20.1 billion, -2.0 percent). Before exchange-rate effects and changes in the scope of consolidation, it posted organic sales growth of 0.8 percent. Its adjusted operating result was €2.0 billion (2024: €2.2 billion, -8.0 percent), corresponding to an adjusted EBIT margin of 10.3 percent (2024: 11.0 percent). Because the sale of the Original Equipment Solutions (OESL) business area had not been completed by the end of 2025, the accounting standard IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations) was applied as required. Therefore, as of the Supervisory Board’s approval on August 26, 2025, no depreciation was recognized in the business operation earmarked for sale. Without the application of IFRS 5, the adjusted operating result for the Continental Group would have been €2.0 billion and the adjusted EBIT margin would have been 10.2 percent.

Net income before non-cash special effects amounted to €1.1 billion. Net income for 2025 was -€165 million (2024: €1.2 billion). As already announced in November, non-cash special effects from the Aumovio spin-off and the planned OESL sale had a negative impact of €1.2 billion on EBIT. They are excluded from adjusted EBIT and are non-cash, meaning they do not affect cash flow. The dividend policy also allows for these non-cash special effects to be excluded from net income when calculating the dividend proposal.

Adjusted free cash flow was €959 million (2024: €598 million, +60.4 percent).

“Overall, we achieved a good adjusted operating result in 2025 – despite a challenging environment. In the Tires group sector alone, the tariff burden totaled more than €100 million. Added to this were negative exchange-rate effects. Without these additional burdens, earnings in the Tires group sector would have been significantly higher than in the previous year,” said Continental CFO Roland Welzbacher, adding, “These challenges will not go away this year. However, thanks to the measures we’ve taken, our operational strength, our excellent products and our strong brand, we’re aiming to increase earnings in 2026 despite the difficult environment. We also expect tailwinds from lower raw material prices and a recovery in our industrial markets in the second half of the year.”

Based on the company’s stable cash flow and net income before special effects, the Executive Board of Continental is proposing a dividend of €2.70 per share for the past fiscal year. This represents an increase of €0.20 per share compared with the previous year, amounting to a distribution of around €540 million (2024: €500 million). At around 50 percent, the distribution to shareholders is in the middle of the range of 40 to 60 percent of net income before non-cash special effects. The Annual Shareholders’ Meeting to be held on April 30, 2026, will decide on the dividend payment amount.

Continental awards bonus to all employees worldwide
Continental is also rewarding the performance of its workforce and sharing the company’s success with all employees. For fiscal 2025, a mid-double-digit million euro amount is expected to be distributed as bonuses. Employees in Germany will receive around €1,123 in the Tires group sector, €740 in the ContiTech group sector and €897 in the group functions for fiscal 2025.