German tire maker Continental revenue misses on portfolio changes

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

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

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(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.)