Finance
Continental swings to net loss in third quarter after Aumovio spin-off
Published by Global Banking and Finance Review
Posted on November 6, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 6, 2025
2 min readLast updated: January 21, 2026
Continental AG reports a Q3 net loss due to Aumovio spin-off costs, overshadowing solid operational results. Sales and margins exceeded forecasts.
By Rachel More
BERLIN (Reuters) -German automotive supplier Continental AG reported a net loss in the third quarter on Thursday due to one-off costs of 1.1 billion euros ($1.28 billion) linked to restructuring as it sheds parts of the group to become a pure-play tyres company.
Continental swung to a net loss of 756 million euros from a 486-million-euro profit a year earlier due to the non-cash special effects resulting from the spin-off of its Aumovio division and the planned sale of its OESL business.
Those effects "overshadowed the otherwise solid operational performance in both EBIT and net income at group level", the company said, confirming preliminary results for the quarter.
Adjusted operating profit fell by 15% year on year to 565 million euros in the July-to-September period, beating the 468.5 million euro forecast by analysts in a company-provided poll.
Group sales of 5 billion euros and an adjusted operating margin of 11.4% were also higher than expected, with a strong price mix offsetting lower volumes and tariffs.
"In a challenging market environment, we continue to work diligently, both operationally and strategically, to complete our realignment next year," CEO Nikolai Setzer said.
($1 = 0.8575 euros)
(Reporting by Rachel More, Editing by Miranda Murray and Friederike Heine)
Net loss occurs when a company's total expenses exceed its total revenues, indicating a financial deficit over a specific period.
Adjusted operating profit is a measure of a company's profitability that excludes certain non-recurring expenses, providing a clearer view of ongoing operational performance.
Restructuring involves reorganizing a company's structure or operations to improve efficiency, often in response to financial challenges or changes in the market.
EBIT stands for Earnings Before Interest and Taxes, representing a company's profitability from operations before accounting for interest and tax expenses.
A spin-off is a corporate action where a company creates a new independent company by selling or distributing new shares, often to focus on core operations.
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