Continental (CON) investor relations material

Executive summary

• Achieved strategic milestones in 2025, including the sale of 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 €1.7 billion in special effects from spin-offs and transformation, with reported net income at -€165 million.

• Proposed dividend of €2.70 per share, reflecting a 4.8% yield and robust underlying cash generation.

Financial highlights

• Adjusted EBIT margin for Tires in Q4 was 13.9%, supported by a 3.4% positive price-mix and lower raw material costs.

• Adjusted free cash flow reached €959 million, at the upper end of guidance, up 60.4% year-over-year.

• Free cash flow in Q4 was strong, aided by disciplined CapEx and working capital management.

• Net debt reduced, with a pro forma leverage ratio of around 2.0 at year-end.

• Dividend payout ratio at 42.8% (adjusted for non-cash one-offs); equity ratio at 23.4%.

Outlook and guidance

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

• Tires sales forecasted at €13.2–14.2 billion, margin 13.0–14.5%.

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

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

• Market environment for 2026 expected to be flat to low growth, with light vehicle production declining and minor growth in replacement markets.