German automotive supplier Continental has met its full-year guidance for both sales and adjusted EBIT margin at group level and within its tyres division.
In contrast, performance at the ContiTech unit came in below the company’s stated margin range.
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Roland Welzbacher, Continental’s chief financial officer, attributed ContiTech’s performance to the “persistently weak market environment”.
Continental reported preliminary sales of about €5bn ($5.86bn) for the fourth quarter and approximately €19.7bn for fiscal 2025, in line with its guidance band of €19.5bn to €21bn.
The adjusted EBIT margin is expected to be around 10.9% for the fourth quarter and roughly 10.2% for the full year, within the target corridor of “around 10.0% to 11.0%”.
The tyres business delivered fourth-quarter sales of around €3.6bn. For the full year 2025, Continental anticipates sales of about €13.8bn, consistent with its previously communicated range of €13.5bn to €14.5bn.
The division’s adjusted EBIT margin is projected at around 14.3% in the final quarter, which the company attributes “particularly due to positive mix effects and further cost optimisations”.
For the full year, the adjusted EBIT margin in tyres is expected to be around 13.6%, within the guided span of “around 12.5% to 14%”.
By contrast, the ContiTech group sector’s profitability fell short of the targeted margin range.
Continental expects ContiTech’s sales to come in at around €1.4bn for the fourth quarter and roughly €6bn for fiscal 2025, aligning with the guidance of €6bn to €6.5bn.
Continental is pressing ahead with its plan to divest ContiTech, which supplies advanced rubber and plastic solutions, with the transaction targeted for 2026.
According to the company, internal preparations for the sale have been finalised, the “market outreach phase has been concluded”, and a structured sales process is scheduled to start this month.
Welzbacher added: “Today’s highly dynamic markets confirm that our focused, decisive approach is the right course of action. Strong interest from potential buyers confirms ContiTech’s value and potential.”
The group is also progressing with the previously announced disposal of ContiTech’s Original Equipment Solutions (OESL) business area.
“Continental expects the sale to be completed in this quarter, after receiving regulatory approval,” the company’s statement read.
