Continental Eyes Bigger 2026 Profits While Wrapping Up Its Big Shift

Continental plans to lift its earnings next year, even as markets stay shaky. The move hinges on booming sales of large premium tires, falling raw‑material costs, and a rebound in industrial demand later in 2026. The company also counts on gains from streamlining its ContiTech unit, though trade barriers still loom. Forecasts put sales between €17. 3 billion and €18. 9 billion, with an adjusted EBIT margin of 11‑12½ percent and free cash flow near €0. 8‑1. 2 billion. Last year, Continental hit its sales and margin targets for both the group and its tire division. Net earnings before special items were €1. 1 billion, enabling a proposed dividend of €2. 70 per share and a profit‑sharing bonus worth several hundred million euros for staff worldwide. The CEO highlighted that the company has finished key parts of its restructuring: Aumovio was spun off, and OESL sold in February. The upcoming sale of ContiTech marks the final phase, according to a press conference in Hanover. He praised employees for keeping momentum during uncertain times and announced that workers will benefit from a profit‑sharing program.In 2025, Continental recorded €19. 7 billion in sales—down 2 percent from the previous year—but grew organically by 0. 8 percent before currency shifts. Adjusted EBIT fell to €2. 0 billion, a 10. 3‑percent margin, partly because the OESL unit was still listed as an asset for sale and had no depreciation recorded. Without that accounting rule, the margin would have been 10. 2 percent. Net income slipped to a loss of €165 million, largely due to one‑time non‑cash effects from the Aumovio spin‑off and planned OESL sale, which cost €1. 2 billion in EBIT but do not hit cash flow. The CFO noted that tariffs and currency swings hurt the tire division, yet operational strength and brand power should push earnings higher in 2026. Lower material costs and a late‑year industrial upswing are expected to help. Given stable cash flow, the board recommends a €2. 70 dividend—up €0. 20 from last year—representing about 50 percent of pre‑special‑effect earnings. Shareholders will vote on the final amount at the April 30, 2026 meeting.