Published by Global Banking & Finance Review®
Posted on March 4, 2026
3 min readLast updated: April 2, 2026
Add as preferred source on GoogleContinental 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.
By Amir Orusov
March 4 (Reuters) - German car parts supplier Continental on Wednesday guided for broadly stable 2026 sales and profitability in its core tyres business, as it continues to reorganise its business in a volatile demand environment.
It expects annual sales in the key unit to land between 13.2 billion and 14.2 billion euros ($15.3 billion and $16.5 billion), against 13.8 billion euros in 2025. At its midpoint, the forecast is slightly below a consensus estimate of 14.0 billion euros.
"We established such a wide corridor because we have to reflect the uncertainty we are currently seeing," finance chief Roland Welzbacher told Reuters. "Of course, we are aiming to reach the upper half."
Adjusted operating profit margin is seen between 13.0% and 14.5% for the tyres business, compared with 13.6% last year. Analysts' average estimate, as shown on the company's website, was 14% for 2026.
German car manufacturers and their suppliers have been struggling with U.S. tariffs, weaker demand, intensifying Chinese competition, negative foreign exchange effects and supply chain changes weighing on margins and fuelling future uncertainty.
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 as stable or falling by up to 2%.
The outlook excludes any potential impact from the escalating Middle East conflict, it said.
The U.S.-Israeli war on Iran has prompted a sharp increase in oil prices, raising concerns for Continental, which relies on oil‑derived raw materials to make synthetic rubber for its tyre production.
Significantly higher oil prices over a longer period would drive up input costs, Welzbacher said.
ROAD TO PURE-PLAY TYREMAKER
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.
Welzbacher also said the company had seen a lot of interest in ContiTech from potential investors, with possible offers expected in the first quarter of 2026. He declined to comment on a purchase price.
After selling the non-tyre units, Continental has a plan to grow both its top and bottom lines, Welzbacher said.
($1 = 0.8625 euros)
(Reporting by Amir Orusov in Gdansk, additional reporting by Christina Amann in Berlin, editing by Milla Nissi-Prussak)
The adjusted operating profit margin is forecast between 13.0% and 14.5% for 2026.
Persistent volatility in demand is impacting Continental's sales and profitability expectations.
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