German tiremaker Continental AG announced a dividend increase to €2.70 per share, up from €2.50, signaling a commitment to shareholder returns.
However, its 2026 profit outlook fell short of analyst expectations, with an adjusted EBIT margin guidance of 11% to 12.5% implying a midpoint EBIT of approximately €2.13 billion, roughly 4% below consensus. The shortfall is primarily concentrated in the tire division, whose 2026 margin guidance of 13% to 14.5% is 5% below consensus.
CFO Roland Welzbacher highlighted persistent tariff and exchange-rate burdens, which exceeded €100 million in 2025. While fourth-quarter tire margins beat expectations, revenue declined.
The ContiTech division experienced a sharper miss in Q4, though Continental has initiated a structured sale process for it in early 2026, aiming for a margin recovery contingent on industrial market improvements. Full-year 2025 saw a 2% drop in group sales and a decline in adjusted EBIT, with a net loss of €165 million due to significant non-cash restructuring charges.
CEO Christian Kötz emphasized the strategic realignment, focusing on the core tire business.
Germany’s Continental Expects Earnings to Increase This Year(current)
Originally reported as: “Germany’s Continental Expects Earnings to Increase This Year”
