Conti sales, earnings decline amid automotive unit spin-off

Hanover, Germany – Continental AG has reported a dip in sales and a significant decline in earnings (EBITDA) for the three months to 30 Sept, as the group completed the spin-off of its Aumovio automotive group division.

During the quarter, consolidate sales came in at €5 billion, down 1% compared to a year ago, but reflecting a 2.6% organic growth, Continental announced 6 Oct.

Earnings fell to €31 million, from €897 million reported the year before.

Over the first nine months, sales fell 1% year-on-year to €14.7 billion, while earnings declined 43% to €1.3 billion.

In addition to the Aumovio spin-off, the quarter also saw Continental signing the agreement to sell ContiTech’s Original Equipment Solutions (OESL) business area as part of a major ongoing realignment measure.

Continental said “non-cash special effects” from the Aumovio spin-off and the planned OESL sale overshadowed “the otherwise solid operational performance” in both EBIT and net income at group level.

Commenting on the performance of the continuing operations, Continental said its results were affected by “challenging market conditions driven by the general economic uncertainty.”

The “important” European replacement-tire market for passenger cars and light commercial vehicles, said Continental, declined by 2% year-on-year.

European industrial production rose slightly by 1.4% from a low base, while US industrial production increased by 1.1% compared with the same quarter last year.

Global production of passenger cars and light commercial vehicles rose by around 4% to 22.6 million units.

In this environment, the Tires group sector achieved good results and significantly improved compared with the second quarter of 2025.

The performance was helped by “the strong replacement-tire business for passenger cars, particularly in North America and Asia.”

The group sector recorded sales of €3.5 billion in the third quarter, on a par with the year before.

Before exchange-rate effects and changes in the scope of consolidation, the sector posted organic sales growth of 3.6%, said Continental.

The segment’s earnings for the three-month period fell 1.3% to €688 million, while the adjusted EBIT margin rose to 14.3% from 12.0% in the previous quarter, still slightly lower than 14.6% in the third quarter of 2024.

Continental said exchange-rate effects and tariffs on imports into the US had a negative impact on earnings, offset by strong results in the replacement-tire business for passenger cars in North America and Asia in the third quarter.

Despite weak industrial demand, ContiTech increased its adjusted EBIT margin year-on-year, helped by short-term cost-reduction measures.

The group sector reported a slight decline in sales to €1.48 billion during the quarter, down from €1.54 billion reported last year.

Earnings grew 7% year-on-year to €117 million during the quarter, while adjusted EBIT margin rose from 4.4% in the third quarter of 2024 to 6.6% this year.