Continental reports full-year sales and profitability within own guidance (updated)

Continental AG

21/01/2026 10:56

ContiTech full-year margin below forecast

Sale of ContiTech is on track

OESL business sale to close in Q1

Shares slide 1.4%

Adds CFO quote, details on OESL business sale, background information, share move, analyst comment in paragraphs 6-10

By Amir  Orusov

Jan 21 (Reuters) -
German car parts supplier Continental CONG.DE on Wednesday reported preliminary full-year sales and profit margin around the lower end of its guidance range.

The group said sales are expected to come in at around 19.7 billion euros ($23.1 billion) for 2025, compared with its guidance range of 19.5-21 billion euros.

The group's margin of adjusted earnings before interest and tax (EBIT) over sales in 2025 is expected at 10.2%, meeting its guidance range of between 10% to 11%, the company said in a statement.

However, the margin in the rubber and plastics division ContiTech would be around 4.9%, falling short of its outlook of 6%-7%, the company said, explaining the reasons with, among others, the lack of market recovery, transformation expenses and currency effects.

"Nevertheless, this does not affect our plans to sell ContiTech this year," CFO Roland Welzbacher said in a statement, referring the lower-than-expected results in the division.

"Strong interest from potential buyers confirms ContiTech's value and potential," Welzbacher added.

The divestiture offers additional cash return opportunities, J.P.Morgan said in a note.

The group
said
 in December that it was planning to sell the rubber and plastics division in the second half of 2026.

Additionally, the company specified that the closing period of the
sale
 of its Original Equipment Solutions (OESL) business  is anticipated in the first quarter of 2026.

Continental shares slid 1.4% at 1118 GMT.

($1 = 0.8543 euros)

 (Reporting by Amir Orusov and Rachel More, additional reporting by Anastasiia Kozlova, editing by Linda Pasquini and Ludwig Burger)

 ((Amir.orusov@thomsonreuters.com))