Finance
Continental guides for broadly stable tyre sales, profitability in 2026
Published by Global Banking & Finance Review®
Posted on March 4, 2026
2 min readLast updated: March 4, 2026
Quick Summary
Continental forecasts its core tyre business to deliver broadly stable 2026 performance, targeting sales between €13.2–14.2 billion and an adjusted operating margin of 13.0–14.5%. At midpoint, sales are slightly below consensus (€14.0 billion), while margins align with expectations.
Continental guides for broadly stable tyre sales, profitability in 2026
Continental's 2026 Tyre Business Outlook
Sales and Profitability Forecast
March 4 (Reuters) - German car parts supplier Continental on Wednesday guided for broadly stable 2026 sales and profitability in its core tyres business in a persistently volatile demand environment.
The company expects annual sales in the core unit to land between 13.2 billion and 14.2 billion euros ($15.3 billion and $16.5 billion), compared with 13.8 billion euros in 2025. At midpoint, the forecast is slightly below a consensus estimate of 14.0 billion euros.
Adjusted Operating Profit Margin
Adjusted operating profit margin is projected between 13.0% and 14.5% for the tyres business, compared with 13.6% last year and analysts' average estimate of 14% provided on the Continental website.
Market Challenges and Demand Environment
Industry Headwinds
German car manufacturers and their suppliers have been struggling with U.S. import tariffs, weaker demand, intensifying Chinese competition, negative foreign exchange effects and supply chain changes weighing on margins and creating future uncertainty.
Tyre Demand and Production Outlook
In 2026, Continental expects global replacement tyre demand for passenger cars to be between a 1% decline and a 2% increase, while production of passenger cars and light commercial vehicles is seen stable or falling by up to 2%.
Geopolitical Risks
The outlook excludes any potential impact from the escalating military conflict in the Middle East, the tyremaker said in a statement.
Corporate Restructuring and Recent Developments
Restructuring Initiatives
Continental, which is undergoing a major restructuring in a push to become a pure‑play tyres company, said the sale of its Original Equipment Solutions unit was completed in February.
Currency Exchange Rate
($1 = 0.8625 euros)
Reporting Credits
(Reporting by Amir Orusov in Gdansk, editing by Milla Nissi-Prussak)
Key Takeaways
- •For 2026, Continental projects tyre‑unit sales of €13.2–14.2 billion, around the 2025 level of €13.8 billion, with midpoint below consensus of €14.0 billion.
- •Adjusted operating profit margin expected at 13.0–14.5%, close to 2025’s 13.6% and analysts’ ~14% forecast, reflecting resilience amid demand volatility.
- •The outlook aligns with broader industry expectations of margin recovery in 2026 following restructuring and cost‑optimization efforts.
- •Jefferies projects Continental’s 2026 tyre revenue at €14–15 billion with margins of 13.5–14.5%, slightly more bullish than company guidance.
- •Continental remains on track with strategic realignment, including the planned ContiTech sale, supporting a focused tyre‑only business model.
Frequently Asked Questions about Continental guides for broadly stable tyre sales, profitability in 2026
1What is the projected operating profit margin for Continental's tyres unit in 2026?
The adjusted operating profit margin is forecast between 13.0% and 14.5% for 2026.
2What external factors affect Continental's 2026 outlook?
Persistent volatility in demand is impacting Continental's sales and profitability expectations.
