Continental (CON) investor relations material

Executive summary

• Q1 2026 consolidated sales reached €4.4 billion, down 10.4% year-over-year, with organic sales declining 0.9% amid challenging markets and FX headwinds.

• Adjusted EBIT increased 6.1% to €522 million, with a margin of 11.9%, driven by strong tire price mix, UHP replacement business, and operational efficiency.

• Net income surged 196.5% to €200 million, and adjusted free cash flow improved to €35 million from -€216 million.

• CEO contract extended to 2030; Sabrina Soussan appointed as Supervisory Board Chair.

• Progressing as planned on the sale of ContiTech and completed sale of OESL in February, impacting ContiTech sales and margins.

Financial highlights

• Q1 2026 sales: €4,396 million, down from €4,905 million in Q1 2025.

• Adjusted EBIT margin increased to 11.9% from 10.7% year-over-year; EBITDA margin rose to 14.7%.

• Basic and diluted EPS were €1.00, up from €0.34 year-over-year.

• Net indebtedness as of March 31, 2026, was €5,093 million, with a pro forma leverage ratio of 1.95.

• Adjusted free cash flow turned positive at €35 million.

Outlook and guidance

• Full-year 2026 outlook confirmed: consolidated sales expected between €17.3–18.9 billion and adjusted EBIT margin of 11.0–12.5%.

• Tires segment sales forecast at €13.2–14.2 billion with adjusted EBIT margin of 13.0–14.5%; ContiTech at €4.2–4.8 billion with margin of 7.0–8.5%.

• Adjusted free cash flow for 2026 projected at €0.8–1.2 billion.

• Management remains cautious due to ongoing geopolitical uncertainty, raw material price volatility, and muted volume growth.

• Capital expenditure ratio expected at 7.0% of sales; tax rate around 24%.