Germany's Continental Q2 revenue rises on demand for large tires
Germany's Continental Q2 revenue rises on demand for large tires
Overview
Germany tire maker's Q2 revenue fell 9% yr/yr, mainly due to divestitures
Adjusted EBIT rose 35% yr/yr; margin improved to 12.9%
Company agreed to sell ContiTech, finalizing realignment as pure-play tire manufacturer
Outlook
Continental sees 2026 sales at €13.2 bln to €14.2 bln for continuing operations
Company expects 2026 adjusted EBIT margin of 12.0-13.5% for continuing operations
Continental forecasts 2026 adjusted free cash flow of €0.7 bln to €1.1 bln
Result Drivers
LARGER-DIAMETER TIRES - Co said a higher share of tires measuring 18 inches and above supported profitability and margin gains
RAW-MATERIAL PRICES - Positive effects from raw-material prices contributed to improved results, per CFO Roland Welzbacher
EXCHANGE RATES AND TARIFFS - Lower impacts from exchange rates and tariffs aided earnings, according to CFO Roland Welzbacher
Company press release: ID:nEQ9B6CCsa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Beat* | EUR 4.41 bln | EUR 4.40 bln (2 Analysts) |
Q2 Net Income |
| EUR 274 mln |
|
Q2 Adjusted EBIT | Beat | EUR 570 mln | EUR 546.63 mln (2 Analysts) |
Q2 Adjusted EBIT Margin |
| 12.90% |
|
Q2 Adjusted Free Cash Flow |
| EUR 216 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
Wall Street's median 12-month price target for Continental AG is €77.00, about 6.4% above its August 3 closing price of €72.36
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)