Continental lifts profit after Aumovio separation and planned ContiTech sale
Continental’s adjusted operating profit rose in the second quarter of 2026 even as revenue declined following its restructuring. The German group is concentrating on tires after separating Aumovio and agreeing to sell ContiTech to Lone Star Funds.
Adjusted EBIT rises as revenue contracts
Continental reported stronger profitability for the second quarter of 2026 as the German group continued its transformation into a tire-focused company. The separation of its former Automotive division, now operating as Aumovio, and the planned disposal of ContiTech have reduced the group’s size while concentrating its remaining business on tire development and production.
According to Romanian publication Ziua de Vest, quarterly revenue fell 9.1% year on year to €4.4 billion, approximately €500 million below the corresponding 2025 level. Continental said the decline was only 0.3% after adjusting for currency movements and changes in the group’s structure. Adjusted operating profit, or EBIT, increased from €422 million to €570 million, while the adjusted EBIT margin rose from 9.6% to 12.9%.
Premium tires support the core business
The tire division generated sales of €3.3 billion, broadly in line with the same period a year earlier. Its operating margin advanced from 12.1% to 15.3%, making tires the main source of earnings in Continental’s streamlined portfolio. Chief Financial Officer Roland Welzbacher attributed the profitability improvement to a higher share of premium tires with diameters above 18 inches, favorable raw-material price effects and a limited impact from currency fluctuations and trade tariffs.
Those gains may face pressure later in the year. Welzbacher said Continental expects a substantial increase in raw-material costs during the second half of 2026 and has already taken measures to manage the change. The company’s ability to preserve its margin will therefore depend partly on product mix, pricing discipline and the timing with which higher input costs move through tire contracts and replacement markets.
ContiTech sale completes the reshaping
ContiTech reported revenue of about €1.1 billion before completion of its sale, nearly 30% below the previous-year level, mainly because of the disposal of OESL. Its adjusted operating margin slipped to 6.9% amid difficult market conditions. Continental has agreed to sell ContiTech to investment firm Lone Star Funds in a transaction valued at €4.25 billion. The company expects to receive approximately €3.1 billion in cash.
The transaction is expected to close by the end of 2026, subject to regulatory approvals. Continental’s management plans to return a large portion of the proceeds to shareholders through a special dividend or a combination of a dividend and share buybacks. Following the reorganization, the company forecasts full-year 2026 sales of €13.2 billion to €14.2 billion and an adjusted EBIT margin of 12% to 13.5%. The shift also changes the role of Continental’s operations in Romania, including Timișoara and other industrial centers, as the group exits automotive components and industrial technologies to focus exclusively on tires.
