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German tire maker Continental revenue misses on portfolio changes

By Reuters News


Overview

  • Germany tire maker's Q3 revenue declined and missed analyst expectations

  • Adjusted EBIT for Q3 rose and beat analyst expectations

  • Company raised full-year outlook for adjusted EBIT margin and free cash flow


Outlook

  • Continental raises 2026 sales outlook to €13.5 bln-€13.9 bln

  • Company expects 2026 adjusted EBIT margin of 13.4%-14.0%

  • Continental forecasts 2026 adjusted free cash flow of €1.0 bln-€1.3 bln


Result Drivers

  • TIRE BUSINESS PERFORMANCE - Co said strong performance in the tire business, particularly in Europe and Asia, drove results, per CEO Christian Kötz

  • UHP TIRES AND RAW-MATERIAL COSTS - Higher sales of ultra-high-performance tires supported profitability, but higher raw-material prices weighed on earnings, per CFO Roland Welzbacher

  • PORTFOLIO CHANGES - Revenue decline mainly attributed to sale of Original Equipment Solutions business


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

EUR 3.45 bln

EUR 3.49 bln (3 Analysts)

Q3 Net Income

EUR 349 mln

Q3 Adjusted EBIT

Beat

EUR 514 mln

EUR 472.58 mln (3 Analysts)

Q3 Adjusted Free Cash Flow

EUR 31 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

  • Wall Street's median 12-month price target for Continental AG is €80.00, about 19.5% above its November 3 closing price of €66.94

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago


Reuters Recommended Reads

  • Nov 4 - Continental raises 2026 outlook on tyre business strength

  • Nov 3 - Bayer raises 2026 profit outlook as pharma business beats expectations

  • Nov 4 - Fresenius raises 2026 outlook for second time after strong Q3


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.)

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