Continental reports net income of 506 million euros, up 66 percent in the second quarter

Continental announces its financial results for the second quarter of 2025, with earnings in the Automotive group sector improving significantly both year-on-year. The Tires group sector achieved a double-digit adjusted EBIT margin.

In a weak industrial environment, ContiTech increased its adjusted EBIT margin compared with the first quarter of the year. In the second half of the year, Continental aims to make improvements in the Tires and ContiTech group sectors compared with the second quarter. Continental plans to take the Automotive group sector public as an independent company on September 18, 2025.

“We’ve worked hard to make our group sectors more resilient and more agile. In a highly volatile economic environment, this hard work is now paying off. As a result, the Automotive group sector has positive momentum ahead of its spin-off in September,” said Continental CEO Nikolai Setzer in Hanover on Tuesday. 

In the second quarter of 2025, Continental achieved consolidated sales of €9.6 billion (Q2 2024: €10.0 billion, -4.1 percent). Its adjusted operating result was €834 million, corresponding to an adjusted EBIT margin of 8.7 percent. Without the application of IFRS 5, the adjusted operating result would have been €597 million (Q2 2024: €711 million) and the adjusted EBIT margin would have been 6.2 percent (Q2 2024: 7.1 percent). Due to the planned spin-off of the Automotive group sector, the accounting standard IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations) has been applied as required. Consequently, since the Supervisory Board approved the spin-off on March 12, 2025, depreciation on those parts of the business earmarked for spin-off is no longer taken into account.  

Net income in the second quarter amounted to €506 million (Q2 2024: €305 million, +66.0 percent). Net income was also positively influenced by the ceasing of depreciation. Adjusted free cash flow was down year-on-year at -€166 million (Q2 2024: €147 million). In the same quarter of the previous year, a one-off effect due to changed payment terms in the Contract Manufacturing group sector had a positive impact on cash flow. Nevertheless, in the first half of 2025 Continental improved its adjusted free cash flow by more than €450 million compared with the first half of 2024.

“We continue to see solid earnings in all areas. Our adjusted operating result and adjusted free cash flow increased year-on-year in the first half of 2025. Continental is on the right track – despite constantly changing conditions,” said Continental CFO Olaf Schick.