Continental (CON) CMD 2025 summary

Transformation strategy and structural changes

• Entering an era of execution post-2024, focusing on operational excellence, self-help, and transformation amid persistent market volatility and intensified competition, especially in automotive.

• Accelerated restructuring includes spinning off Automotive (AUMOVIO) in September 2025, selling OSL in H2 2025, and targeting ContiTech sale for 2026, with each sector prepared for independence and tailored strategies.

• Transformation aims to create three pure-play champions: Automotive, ContiTech, and Tires, with the group ultimately becoming a tire pure play focused on value creation and profitability.

• Emphasis on cost structure optimization, complexity reduction, and portfolio management to safeguard competitiveness and improve margins.

• Strategic focus on value creation over volume, with active portfolio cleaning, selective M&A to address growth gaps, and a clear roadmap energized by management.

Financial guidance and performance outlook

• Group 2025 guidance: sales of €19.5–21.0 billion, adjusted EBIT margin of 10.0–11.0%, and free cash flow of €600 million–1 billion, reflecting tariff and FX headwinds.

• Mid-term (3–5 years) group sales expected at €19.5–22.0 billion, adjusted EBIT margin 12.0–14.5%.

• Tires 2025: sales €13.5–14.5 billion, adjusted EBIT margin 12.5–14.0% (revised down), with mid-term sales €14.5–16.0 billion and margin 13.0–16.0%.

• ContiTech 2025: sales €6.0–6.5 billion (including OSL), adjusted EBIT margin 6–7%; post-OSL sale, mid-term sales €5.0–6.0 billion and margin 11.0–13.0%.

• AUMOVIO targets mid-term EBIT margin of 4–6%, aiming for 6–8% long-term, with a strong balance sheet and no financial debt at spin-off.

Business area strategies and operational focus

• ContiTech: transforming into a global industrial pure play, targeting 80%+ industrial exposure, diversified customer base, and aftermarket growth, with complexity reduction and improved customer engagement.

• Tires: focusing on value over volume, operational excellence, premium mix (UHP), and portfolio optimization, leveraging strong brand, efficient processes, and robust technology.

• AUMOVIO: four business areas (Safety & Motion, User Experience, Architecture Network Solutions, Autonomous Mobility) with strong market positions, cost discipline, and innovation focus.

• Autonomous Mobility: three-pillar strategy (components, systems, as-a-service), with significant growth expected from autonomous trucking partnership with Aurora.

• User Experience: leveraging mega factories, standardization, and portfolio management to drive margin recovery and growth, especially with Asian OEMs.