Strong Financial Performance from Continental: Profit Margin to Rise in 2026

Leading tyre manufacturer Continental announced its financial results for the 2025 fiscal year and targets for 2026 at its annual press conference held in Hannover. Despite volatile conditions in global markets, the company completed 2025 with strong operational performance and increased cash flow.

Continental achieved consolidated sales revenue of EUR 19.7 billion in 2025 and realized an adjusted operating profit margin of 10.3%. The company's free cash flow rose significantly to EUR 959 million.

2025 targets successfully achieved
Continental generated adjusted operating profit of EUR 2.0 billion in the 2025 fiscal year, while reporting net profit of EUR 1.1 billion excluding non-cash special effects. Adjusted for currency effects and consolidation changes, the company recorded organic growth of 0.8%.

Profitability increase target for 2026
The company aims to increase profitability in 2026 through growth in the premium tyre segment and cost improvement measures. In this context, consolidated sales for 2026 are expected to range between EUR 17.3 billion and EUR 18.9 billion, while adjusted operating profit margin is anticipated to rise to levels between 11.0% and 12.5%.

Christian Kötz, noting significant progress in the company's restructuring process, stated: "In 2025, we achieved the targets we set for both the Continental Group and our tyre business. We have passed important milestones in our restructuring process."

Premium segment supported growth
Continental's tyre business maintained strong performance in 2025 with sales revenue of EUR 13.8 billion. Despite cost pressures from tariffs and currency effects, the adjusted operating profit margin was realized at 13.6%.

This performance was notably supported by an increase in the sales share of ultra-high-performance tyres of 18 inches and above. The share of this segment in Continental-branded passenger car tyres reached 62%.

The company's summer, winter and all-season tyres were evaluated in 77 independent tests worldwide in 2025, placing in the top three in more than 80% of these tests.

Challenging market conditions may continue in 2026
Roland Welzbacher noted that global trade barriers and currency fluctuations continue to create pressure on the sector. Nevertheless, the company aims to increase profitability in 2026 through its strong product portfolio, operational efficiency and cost management.

Continental forecasts that in 2026, sales volume in the global passenger car replacement tyre market will range between -1% and +2%, while passenger and light commercial vehicle production will move in the range of -2% to 0%.

About Continental
Founded in 1871, Continental is a global technology company in the field of mobility solutions and tyre manufacturing. The company generated sales revenue of EUR 39.7 billion in 2024 and operates with approximately 95,000 employees across 54 countries.

Continental's tyre group provides automobile, truck, bus, motorcycle and bicycle tyres, as well as fleet solutions and intelligent services. With more than 150 years of experience, the company focuses on making mobility safer, smarter and more sustainable.