Notes to the Consolidated Statement of Income
7. Sales
The following tables show the breakdown of sales from continuing operations in accordance with IFRS 15, Revenue from Contracts with Customers, into main geographical markets, segments, customer groups and product types.
In preparation for the spin-off of the former Automotive and Contract Manufacturing segments, a small number of business activities were transferred from Automotive and Contract Manufacturing to the Tires and ContiTech segments and to the holding company. The comparative period was adjusted accordingly.
Sales from January 1 to December 31, 2025
€ millions |
Tires |
ContiTech |
Other/ |
Continental Group |
Germany |
1,842 |
1,022 |
–47 |
2,817 |
Europe excluding Germany |
5,243 |
1,653 |
–27 |
6,869 |
North America |
4,036 |
1,761 |
–40 |
5,757 |
Asia-Pacific |
1,971 |
1,107 |
–9 |
3,069 |
Other countries |
705 |
462 |
–4 |
1,163 |
Sales by region |
13,798 |
6,005 |
–127 |
19,676 |
|
|
|
|
|
Industrial/replacement business |
10,494 |
3,466 |
–82 |
13,878 |
Automotive original-equipment business |
3,303 |
2,539 |
–44 |
5,798 |
Sales by customer type |
13,798 |
6,005 |
–127 |
19,676 |
|
|
|
|
|
Goods |
13,055 |
5,811 |
–121 |
18,745 |
Services |
742 |
124 |
–4 |
862 |
Project business |
— |
70 |
–1 |
69 |
Sales by product type |
13,798 |
6,005 |
–127 |
19,676 |
Sales from January 1 to December 31, 2024
€ millions |
Tires |
ContiTech |
Other/ |
Continental Group |
Germany |
1,827 |
1,008 |
–75 |
2,760 |
Europe excluding Germany |
5,321 |
1,725 |
–45 |
7,001 |
North America |
4,076 |
1,971 |
–39 |
6,008 |
Asia-Pacific |
1,948 |
1,232 |
–4 |
3,176 |
Other countries |
688 |
451 |
–7 |
1,132 |
Sales by region |
13,861 |
6,387 |
–171 |
20,077 |
|
|
|
|
|
Industrial/replacement business |
10,529 |
3,588 |
–135 |
13,982 |
Automotive original-equipment business |
3,332 |
2,798 |
–35 |
6,095 |
Sales by customer type |
13,861 |
6,387 |
–171 |
20,077 |
|
|
|
|
|
Goods |
13,123 |
6,209 |
–164 |
19,169 |
Services |
738 |
118 |
–6 |
849 |
Project business |
— |
60 |
–1 |
59 |
Sales by product type |
13,861 |
6,387 |
–171 |
20,077 |
The total revenue from contracts with customers in accordance with IFRS 15, Revenue from Contracts with Customers, amounted to €19,722 million (PY: €20,137 million), of which €46 million (PY €60 million) is recognized under other income. Of the contract liabilities of €44 million accounted for at the beginning of the year, €44 million was recognized as revenue in the reporting year. Revenue of €0 million (PY: €10 million) for performance obligations satisfied in the previous year was recognized in the reporting year due to transaction price changes.
Revenue of €61 million is expected for 2026 and €50 million for 2027 and subsequent years for performance obligations not yet satisfied or only partly satisfied from contracts as defined in IFRS 15 with a term of more than one year. For contracts as defined in IFRS 15 with a term of less than one year, the practical expedient under IFRS 15.121 (a) is applied and no amounts are shown.
Use of other practical expedients
For contracts for which the time interval between the provision of the service by Continental and the expected payment by the customer comes to less than one year as at the start of the contract, the practical expedient from IFRS 15.63 is applied and the transaction price is not adjusted for any significant financing components contained.
8. Other Income and Expenses
| € millions | 2025 |
2024 |
| Other income | 343 |
532 |
| Other expenses | –1.052 |
–402 |
| Other income and expenses | –709 |
130 |
Other income
| € millions | 2025 |
2024 |
| Income from other ancillary business | 51 |
38 |
| Income from other taxes | 34 |
39 |
| Income in connection with litigation and environmental risks | 30 |
33 |
| Income from the reimbursement of customer tooling expenses | 28 |
40 |
| Income from the reversal of impairment on financial assets and contract assets | 27 |
19 |
| Income from research and development | 18 |
20 |
| Compensation from customers and suppliers | 16 |
32 |
| Income from transactions with related parties | 14 |
129 |
| Income from the disposal of property, plant and equipment | 10 |
48 |
| Income from the reversal of provisions for pending losses | 9 |
10 |
| Income from the disposal of companies and business operations | 0 |
19 |
| Other | 106 |
105 |
| Other income | 343 |
532 |
Other income decreased by €189 million to €343 million (PY: 532 million) in the reporting period. The decline was mainly due to lower income from transactions with related parties, which in the previous year included a compensation payment from Vitesco Technologies in the amount of €125 million.
Income amounting to €30 million (PY: €33 million) resulted in connection with litigation and environmental risks. For further information in this regard, see Note 28.
The income from other ancillary business results primarily from revenues from licensing and franchising agreements, the sale of recyclable materials and other ancillary business.
Other income includes one-time items from various companies throughout the fiscal year. There were no individual material items in the fiscal year. In addition, government grants amounting to €7 million (PY: €9 million) that were not intended for investments in non-current assets were received and recognized in profit or loss in the “Other” item.
Other expenses
| € millions | 2025 |
2024 |
| Expenses from the disposal of companies and business operations | 681 |
21 |
| Expenses from other taxes | 58 |
61 |
| Expenses from currency translation | 49 |
0 |
| Expenses in connection with litigation and environmental risks | 38 |
46 |
| Expenses from impairment on financial assets and contract assets | 31 |
43 |
| Expenses from customer tooling | 27 |
33 |
| Compensation to customers and suppliers | 27 |
44 |
| Losses on the disposal of property, plant and equipment, and from scrapping | 7 |
47 |
| Expenses from transactions with related parties | 5 |
4 |
| Expenses from provisions for pending losses | 3 |
55 |
| Other | 126 |
48 |
| Other expenses | 1,052 |
402 |
Other expenses increased by €650 million to €1,052 million (PY: 402 million) in the reporting period.
Expenses from the disposal of companies and business operations amounting to €681 million (PY: €21 million) mainly include losses in connection with the deconsolidation of foreign companies of the former Automotive and Contract Manufacturing segments. Please see Note 6 for further information.
Expenses amounting to €38 million (PY: €46 million) resulted in connection with litigation and environmental risks. For further information in this regard, see Note 28.
In the reporting year, the “Other” item includes expenses in connection with the dissolution of a tax group due to the spin-off of the former Automotive and Contract Manufacturing segments in the amount of €12 million. Provisions of €22 million were also set aside for reimbursements to Aumovio, as per the conditions of the corporate separation agreement with Aumovio. There were no other material items in the fiscal year.
9. Expenses in Connection with the Valuation of a Disposal Group
On August 27, 2025, Continental signed the agreement to sell the OESL business area, which was part of the ContiTech segment. This required a valuation of the OESL disposal group, which – taking into account the agreed purchase price – resulted in impairment on goodwill of €124 million, impairment on other intangible assets and property, plant and equipment of €367 million and other expenses of €71 million. €107 million of the impairment on goodwill and other expenses is attributable to the functional area of cost of sales, €33 million to research and development expenses, €18 million to selling and logistics expenses and €37 million to administrative expenses. €257 million of the impairment on other intangible assets and property, plant and equipment is attributable to the functional area of cost of sales, €28 million to research and development expenses, €28 million to selling and logistics expenses and €55 million to administrative expenses.
10. Personnel Expenses
The following total personnel expenses are included in function costs in the income statement:
| € millions | 2025 | 2024 |
| Wages and salaries | 4,752 | 4,465 |
| Social security contributions | 961 | 951 |
| Pension and post-employment benefit costs | 209 | 142 |
| Personnel expenses1 | 5,922 | 5,558 |
1 Personnel expenses from continuing and discontinued operations totaled €9,520 million in the reporting period (PY: €11,219 million).
Compared with the 2024 reporting year, personnel expenses increased by €364 million to €5,922 million (PY: €5,558 million).
The average number of employees for continuing operations in 2025 was 95,414 (PY: 98,721). As at the end of the year, there were 92,653 (PY: 97,418) employees in the Continental Group. The year-on-year increase in personnel expenses was mainly due to higher expenses for the creation of personnel-related provisions for restructuring measures as well as higher wages and salaries. Exchange-rate effects offset this increase.
Social security contributions of the companies of the Continental Group’s continuing operations (employer contributions) amounted to €177 million in the reporting year (PY: €168 million). Contributions made by continuing and discontinued operations amounted to €300 million in the reporting period (PY: €365 million).
11. Financial Result
| € millions | 2025 |
2024 |
| Interest income | 77 |
62 |
| Interest and similar expenses | –284 |
–297 |
| Interest expenses from lease liabilities | –21 |
–20 |
| Interest effects from non-current liabilities | 0 |
–3 |
| Interest effects from long-term employee benefits and from pension funds | –48 |
–44 |
| Interest expense | –352 |
–365 |
| Effects from currency translation | –40 |
48 |
| Effects from changes in the fair value of derivative instruments | 22 |
–36 |
| Other valuation effects | –10 |
4 |
| Effects from changes in the fair value of derivative instruments, and other valuation effects | 12 |
–32 |
| Financial result | –303 |
–287 |
The negative financial result increased by €16 million year-on-year to €303 million in 2025 (PY: €287 million).
Interest income rose by €15 million year-on-year to €77 million (PY: €62 million).
Interest expense totaled €352 million in 2025 and was thus €13 million lower than the previous year’s figure of €365 million. Interest expense from long-term employee benefits and expected income from long-term employee benefits and from pension funds amounted to a net expense of €48 million in the reporting year (PY: €44 million). These interest effects do not include the interest income from the plan assets of the pension contribution funds or the interest expense from the defined benefit obligations of the pension contribution funds. Interest expense, resulting mainly from bank borrowings, capital market transactions and other financing instruments, was €304 million (PY: €321 million). Interest expense on lease liabilities accounted for €21 million of this (PY: €20 million). The bonds issued led to expenses of €140 million (PY: €111 million). Interest expense in connection with the utilization of the syndicated loan totaled €21 million (PY: €32 million).
Effects from currency translation resulted in a negative contribution to earnings of €40 million in the reporting year (PY: positive contribution to earnings of €48 million). Effects from changes in the fair value of derivative instruments, and other valuation effects resulted in income of €12 million (PY: expenses of €32 million). Of this, other valuation effects accounted for expenses of €10 million (PY: income of €4 million). Taking into account the sum of the effects from currency translation and changes in the fair value of derivative instruments, earnings in 2025 were negatively impacted by €18 million (PY: positively impacted by €12 million).
12. Income Tax Expense
The domestic and foreign income tax expense of the Continental Group is as follows:
| € millions | 2025 |
2024 |
| Current taxes (domestic) | –22 |
–22 |
| Current taxes (foreign) | –408 |
–448 |
| Deferred taxes (domestic) | –42 |
1 |
| Deferred taxes (foreign) | 88 |
71 |
| Income tax expense | –384 |
–398 |
The following table shows the reconciliation of the expected tax expense to the reported tax expense:
€ millions |
2025 |
2024 |
Earnings before tax |
–31 |
1,756 |
Non-tax-deductible goodwill impairment1 |
76 |
— |
Non-tax-deductible deconsolidation effects2 |
693 |
— |
Earnings before tax, goodwill impairment and deconsolidation effects |
739 |
1,756 |
Expected tax expense at the domestic tax rate |
–231 |
–539 |
Foreign tax rate differences |
126 |
160 |
Non-deductible expenses and non-imputable withholding taxes |
–181 |
–177 |
Incentives and tax holidays |
49 |
30 |
Non-recognition of deferred tax assets unlikely to be realized |
–49 |
–212 |
Initial recognition of deferred tax assets likely to be realized |
37 |
27 |
Realization of previously non-recognized deferred taxes |
8 |
3 |
Local income tax with different tax base and minimum corporate tax rate |
36 |
–62 |
Taxes for previous years |
–94 |
380 |
Effects from changes in enacted tax rate |
–74 |
13 |
Other |
–11 |
–21 |
Income tax expense |
–384 |
–397 |
Effective tax rate in % |
52.0 |
22.6 |
1 Earnings before tax were not adjusted for the goodwill impairment of €124 million. A portion totaling €48 million resulted in the reversal of deferred tax liabilities and therefore must be excluded from the reconciliation.
2 Mainly includes non-tax-deductible effects from the deconsolidation of foreign companies of the former Automotive and Contract Manufacturing segments in the amount of €680 million.
The average domestic tax rate in 2025 was 31.3% (PY: 30.7%). It took into account a corporate tax rate of 15.0% (PY: 15.0%), a solidarity surcharge of 5.5% (PY: 5.5%) and a trade tax rate of 15.5% (PY: 14.9%).
The reduction in the tax expense from foreign tax rate differences primarily reflects the volume of activities in Asia and Eastern Europe.
As in the previous year, foreign tax rate differences as well as incentives and tax holidays had positive effects in the year under review. The tax rate was negatively impacted by non-cash allowances on deferred tax assets totaling €49 million (PY: €212 million), of which €4 million (PY: €243 million) was for previous years. Furthermore, as in the previous year, the tax rate was negatively affected by non-deductible expenses and non-imputable foreign withholding taxes. In the year under review, the tax burden was reduced in the amount of €36 million due to local income taxes incurred with a different tax base and to the reversal of provisions for minimum tax regulations (PY: increase in the amount of €62 million). This includes the reversal of provisions set aside in the previous year in connection with the regulations governing a global minimum corporate tax rate (Pillar Two Model Rules) in the amount of €44 million (PY: expenses of €55 million).
As in the previous year, the utilization of incentives in Europe, Asia and the USA as well as in Brazil and Mexico had a positive impact on the tax rate.
Prior-year taxes had a negative impact of €94 million in the reporting year. These are largely attributable to Germany and relate to tax audits and revised tax returns.
The effects from the change in enacted tax rate relate to the remeasurement of deferred tax assets and liabilities due to changes in the law already taking effect with regard to future applicable tax rates, and are mainly attributable to Germany.
The following table shows the total income tax expense, also including the items reported under reserves recognized directly in equity:
| € millions | Dec. 31, 2025 | Dec. 31, 2024 |
| Income tax expense (acc. to consolidated statement of income) | –384 | –398 |
| Tax income on other comprehensive income | –157 | –57 |
| Remeasurement of defined benefit plans | –161 | –51 |
| Remeasurement of other financial investments | 0 | –2 |
| Currency translation | 4 | –4 |
| Total income tax expense | –542 | –455 |
