Continental has raised its 2026 outlook after what it described as a very good third quarter in its tire business, even as weak replacement markets weighed on earnings in North and South America.

Americas

The Americas (Tires) region recorded third-quarter sales of €1.1 billion, down 5.0 percent from €1.2 billion a year earlier. The adjusted EBIT margin was slightly higher year-on-year at 8.7 percent, compared with 8.5 percent in Q3 2025. In North and South America, earnings were negatively impacted by weak replacement markets.

Continental aims to return the region to double-digit margins by increasing the sales share of UHP and premium tires, improving its utilization of production capacity and strengthening its market position in the USA and Canada. New products will further enhance its presence in the 4x4 and light-truck tire segments.

In 2025, UHP tires represented 66 percent of Continental's passenger-car tire sales in the Americas, compared with 70 percent in the Asia-Pacific region and 43 percent in the EMEA region.

Group results

Consolidated sales of €3.5 billion (Q3 2025: €3.9 billion, minus 1.5 percent organically)
Adjusted EBIT of €514 million (Q3 2025: €482 million, up 6.7 percent)
Adjusted EBIT margin of 14.9 percent (Q3 2025: 13.9 percent)
Net income (continuing and discontinued operations) of €349 million (Q3 2025: minus €756 million)
Adjusted free cash flow of €31 million (Q3 2025: €99 million, down 69.0 percent)

The decline in sales was mainly due to the sale of the Original Equipment Solutions (OESL) business area at the beginning of February 2026. In light of its planned sale, ContiTech is reported as discontinued operations.

"We delivered another very good quarter in the tire business. We have raised our outlook in line with these results and head into the challenging final stretch of the year in a strong position. For the year as a whole, we now expect the earnings margin and free cash flow figures to exceed our initial projections," said Continental CEO Christian Kötz.

"We once again increased our earnings year-on-year and remain highly profitable, particularly in Europe and Asia. By offering large, high-performance tires for SUVs and electric vehicles, we are catering to customers' demand. These tires are a key driver of our business. However, higher raw-material prices are increasingly affecting our earnings and will impact us even more in the fourth quarter," said CFO Roland Welzbacher.

Raised 2026 outlook

For continuing operations in 2026, Continental now expects:

Adjusted EBIT margin of around 13.4 to 14.0 percent
Adjusted free cash flow of around €1.0 billion to €1.3 billion
Sales of around €13.5 billion to €13.9 billion

The full release is available from Continental.

Tagged: Roland Welzbacher

Continental Raises 2026 Outlook as Americas Tires Face Weak Replacement Market