Continental (CON) Q4 2025 earnings summary

Executive summary

• Achieved strategic milestones in 2025, including the sale of the OE-related ContiTech business, spin-off of Aumovio, and progress toward becoming a pure-play tire company under new CEO Christian Kötz.

• Delivered organic sales growth of 0.8% to €19.7 billion, with Tires up 2.4% and ContiTech down 3.3%.

• Adjusted EBIT reached €2.0 billion (10.3% margin), driven by strong price-mix in Tires and cost discipline.

• Net income after tax was significantly impacted by special effects from spin-offs and transformation, with reported net income at -€165 million and adjusted NIAT at €1.1 billion.

• Proposed dividend of €2.70 per share (4.8% yield), reflecting robust cash generation and payout policy.

Financial highlights

• Group sales: €19.7 billion (organic growth 0.8% year-over-year), adjusted EBIT: €2.0 billion (10.3% margin).

• Adjusted free cash flow reached €959 million, at the upper end of guidance.

• Net income before non-cash special effects at €1.1 billion; reported net income at -€165 million due to special effects.

• Dividend yield increased to 4.8% for FY 2025.

• Net debt reduced, pro forma leverage ratio improved to 2.0.

Outlook and guidance

• 2026 group sales expected at €17.3–18.9 billion, adjusted EBIT margin 11.0–12.5%.

• Tires: sales €13.2–14.2 billion, adjusted EBIT margin 13.0–14.5%.

• ContiTech: sales €4.2–4.8 billion, margin 7.0–8.5%.

• Adjusted free cash flow guidance: €0.8–1.2 billion, CapEx around 7% of sales.

• Guidance reflects current tariffs and FX rates, but not potential impacts from recent geopolitical tensions.