Continental increases profitability in Tires and ContiTech in Q1

Continental started 2026 with a good first quarter. The Tires and ContiTech group sectors both increased their adjusted EBIT margins compared with the same quarter of last year, despite burdens from tariffs and exchange-rate effects. Adjusted free cash flow was also up year-on-year. By contrast, the economic environment and weak global markets hampered sales growth.

For 2026, Continental still expects consolidated sales of around €17.3 billion to €18.9 billion and an adjusted EBIT margin of around 11.0 to 12.5 percent.

“We had a good operational start to the year, increasing our profitability in both Tires and ContiTech compared with the same quarter of last year. This gives us momentum. At the same time, geopoliticaldevelopments are creating greater uncertainty for consumers and for the economy as a whole. This is why we are continuing to work hard on increasing our competitiveness,” said Continental CEO Christian Kötz.

In the past quarter, Continental achieved consolidated sales of €4.4 billion (Q1 2025: €4.9 billion, -10.4 percent). Before exchange-rate effects and changes in the scope of consolidation, its organic sales were down 0.9 percent. The adjusted operating result amounted to €522 million (Q1 2025: €492 million, +6.1 percent), corresponding to an adjusted EBIT margin of 11.9 percent (Q1 2025: 10.7 percent). 

Net income in the first quarter amounted to €200 million (Q1 2025: €68 million, +196.5 percent). Adjusted freecash flow was €35 million (Q1 2025: -€216 million). 

In the first quarter, the Tires group sector achieved sales of €3.3 billion (Q1 2025: €3.4 billion, -4.7 percent). Sales were negatively impacted by exchange-rate effects in the low triple-digit million euro range. Its adjusted EBIT margin was up year-on-year at 14.4 percent (Q1 2025: 13.4 percent). Contributing to this improvement were the upward trend in the replacement-tire business, the successful business in large passenger-car tires measuring 18 inches and above (ultra-high-performance tires), lower raw material costs than in the same quarter of last year and a strong focus on costs. 

In an ongoing weak market environment, ContiTech improved operationally and increased its profitability year-on-year. The group sector achieved sales of €1.2 billion (Q1 2025: €1.5 billion, -24.4 percent). The decline in sales was mainly due to the sale of the Original Equipment Solutions (OESL) business area at the beginning of February 2026 as well as negative exchange-rate effects. ContiTech’s adjusted EBIT margin was 7.9 percent (Q1 2025: 6.2 percent). Excluding the OESL business, the adjusted EBIT margin would have been 8.7 percent. This positive development was driven by a focus on high-margin products, a strong trading business and lower raw material costs. The measures taken to safeguard earnings also had a positive impact.