1. Segment Reporting

In accordance with the provisions of IFRS 8, Operating Segments, Continental AG’s segment reporting is based on the management approach with regard to segment identification, under which information regularly provided to the chief operating decision-maker for decision-making purposes is considered decisive.

Since the spin-off of the former Automotive and Contract Manufacturing segments in September 2025, the operations of the Continental Group are divided into the following two segments:

Tires offers a premium portfolio of innovative tire solutions for the passenger car, truck, bus, two-wheeler and specialty segments, as well as intelligent products and services related to tires. For specialist dealers and fleet managers, Tires provides digital tire monitoring and tire management systems, in addition to other services, which keep fleets mobile and increase their efficiency. With its tires, the segment contributes to safe, efficient and convenient mobility.

ContiTech draws on its materials expertise to develop solutions for industrial applications made from rubber, metal and textiles. Its broad portfolio of hoses, conveyor belts, air springs and drive belts is designed for the operating conditions in industrial environments, which can be challenging. At the same time, ContiTech offers surface materials with an appealing look and feel for use in home and vehicle interiors. ContiTech’s industrial growth areas are primarily in energy, mining, agriculture and construction, as well as exterior and interior design.

Other/holding/consolidation

This comprises centrally managed subsidiaries and affiliates, such as holding, financing and insurance companies, as well as the holding function of Continental AG and certain effects of consolidation. It also contains the effects on earnings of uncertain risks, particularly those in connection with contractual and similar claims or obligations representing, among other things, risks from investments that cannot currently be assigned to the individual operating units.

Internal control and reporting within the Continental Group are based on International Financial Reporting Standards (IFRS) as described in Note 2. The Continental Group measures the performance of its segments on the basis of their adjusted operating result (adjusted EBIT). Their performance is expressed as the return on sales (adjusted EBIT divided by adjusted sales) and as the return on capital employed (ROCE), which represents EBIT as a percentage of average operating assets. Intersegment sales and other proceeds are determined at arm’s length prices. For administrative services performed by centrally operated companies or by the Continental Group’s management, costs are calculated on an arm’s length basis in line with utilization. Where direct allocation is not possible, costs are assigned according to the services performed.

The segment assets comprise the operating assets of the assets side of the statement of financial position as at the end of the reporting period. The segment liabilities show the operating asset parts on the liabilities side of the statement of financial position.
Capital expenditure relates to additions to property, plant and equipment, and software, as well as additions to capitalized right-of-use assets in line with IFRS 16, Leases, and additions to capitalized borrowing costs in line with IAS 23, Borrowing Costs. Depreciation and amortization include the scheduled diminution of and the impairment on intangible assets, property, plant and equipment, capitalized right-of-use assets and investment properties as well as the impairment on goodwill. This figure does not include impairment on financial investments.

Non-cash expenses/income mainly include additions to and reversals of pension and warranty provisions as well as provisions for litigation and environmental risks.

In the segment information broken down by country and region, sales are allocated on the basis of the domicile of the respective customers; in contrast, capital expenditure and segment assets are allocated on the basis of the domicile of the respective companies.

In 2025, the Continental Group generated 25% of its sales attributable to continuing operations in the USA (PY: 25%) and 14% in Germany (PY: 14%). Other than these countries, there were no countries in which more than 10% of sales were achieved by continuing operations, as was also the case in the previous year.

The spin-off of the former Automotive and Contract Manufacturing segments resulted in the application of IFRS 5, Non-current Assets Held for Sale and Discontinued Operations. These parts represent discontinued operations. All segment reporting tables show the figures for continuing operations in the reporting and comparative periods. In preparation for the spin-off, 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.

Segment report for 2025

€ millions	Tires	ContiTech	Other/ Holding/ Consolidation	Continental Group
External sales	13,744	5,932	—	19,676
Intercompany sales	54	73	–127	—
Sales (total)	13,798	6,005	–127	19,676
Cost of sales	9,747	4,951	–133	14,565
EBIT (segment result)	1,776	–556	–948	272
in % of sales	12.9	–9.3	—	1.4
Depreciation and amortization1	819	751	16	1,586
thereof impairment2	17	495	3	514
Capital expenditure3	1,035	276	5	1,316
in % of sales	7.5	4.6	—	6.7
Significant non-cash expenses/income	–54	–28	–1	–83
Segment assets	10,531	3,731	241	14,504
Segment liabilities	3,294	1,453	212	4,959
Operating assets as at Dec. 31	7,238	2,278	30	9,545
Operating assets (average)	7,632	2,695	171	10,499
ROCE in %	23.3	–20.6	—	2.6
Number of employees as at Dec. 314	56,187	36,188	278	92,653
Adjusted sales5	13,798	5,995	–127	19,666
Adjusted operating result (adjusted EBIT)6	1,870	316	–151	2,035
in % of adjusted sales	13.6	5.3	—	10.3

1 Excluding impairment on financial investments.
2 Impairment also includes necessary reversals of impairment losses.                                                                                  
3 Capital expenditure on property, plant and equipment, and software.                                                                               
4 Excluding trainees.                                                                               
5 Before changes in the scope of consolidation.                                                                           
6 Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects.

Segment report for 2024

€ millions	Tires	ContiTech	Other/ Holding/ Consolidation	Continental Group
External sales	13,768	6,309	—	20,077
Intercompany sales	93	78	–171	—
Sales (total)	13,861	6,387	–171	20,077
Cost of sales	9,762	5,181	–171	14,772
EBIT (segment result)	1,870	259	–86	2,043
in % of sales	13.5	4.0	—	10.2
Depreciation and amortization1	792	303	16	1,111
thereof impairment2	2	5	—	7
Capital expenditure3	996	241	14	1,251
in % of sales	7.2	3.8	—	6.2
Significant non-cash expenses/income	–40	–41	–3	–84
Segment assets	10,798	4,415	13	15,226
Segment liabilities	3,421	1,355	131	4,906
Operating assets as at Dec. 31	7,377	3,060	–117	10,320
Operating assets (average)	7,517	3,187	–173	10,532
ROCE in %	24.9	8.1	—	19.4
Number of employees as at Dec. 314	57,069	39,395	954	97,418
Adjusted sales5	13,850	6,387	–171	20,066
Adjusted operating result (adjusted EBIT)6	1,903	392	–83	2,212
in % of adjusted sales	13.7	6.1	—	11.0

1 Excluding impairment on financial investments.
2 Impairment also includes necessary reversals of impairment losses.                                                                                  
3 Capital expenditure on property, plant and equipment, and software.                                                                               
4 Excluding trainees.                                                                               
5 Before changes in the scope of consolidation.                                                                           
6 Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects.

Reconciliation of sales to adjusted sales and of EBITDA to adjusted operating result (adjusted EBIT) in 2025

€ millions	Tires	ContiTech	Other/ Holding/ Consolidation	Continental Group
Sales	13,798	6,005	–127	19,676
Changes in the scope of consolidation1	—	–9	—	–9
Adjusted sales	13,798	5,995	–127	19,666
EBITDA	2,595	195	–932	1,858
Depreciation and amortization2	–819	–751	–16	–1,586
EBIT	1,776	–556	–948	272
Amortization of intangible assets from purchase price allocation (PPA)	4	41	—	45
Changes in the scope of consolidation1	0	0	0	0
Special effects
Impairment on goodwill3	—	124	—	124
Impairment4	8	368	3	379
Restructuring5	55	192	1	248
Restructuring-related expenses	9	4	—	13
Severance payments	16	36	21	73
Gains and losses from disposals of companies and business operations6	1	—	680	681
Other7	—	108	92	199
Adjusted operating result (adjusted EBIT)	1,870	316	–151	2,035

1 Changes in the scope of consolidation include additions and disposals as part of share and asset deals. Adjustments were made for additions in the reporting year and for disposals in the comparative period of the prior year.                                                                                           
2 Excluding impairment on financial investments.                                                                        
3 Impairment on goodwill relates to impairment in connection with the valuation of the OESL disposal group in the amount of €124 million.                    
4 Impairment also includes necessary reversals of impairment losses. It mainly comprises impairment on other intangible assets and property, plant and equipment in the amount of €367 million in connection with the valuation of the OESL disposal group. It does not include impairment that arose in connection with a restructuring and impairment on financial investments and goodwill.
5 Includes restructuring-related impairment losses of €11 million (Tires €8 million; ContiTech €3 million).
6 Gains and losses from disposals of companies and business operations mainly include losses in connection with the deconsolidation of foreign companies of the former Automotive and Contract Manufacturing segments in the amount of €680 million.
7 Mainly includes expenses in connection with the spin-off of the former Automotive and Contract Manufacturing segments, the plans to make the ContiTech segment organizationally independent, and the valuation and sale of the OESL disposal group. Also includes expenses in connection with reimbursements to Aumovio and in connection with the dissolution of a tax group.

Reconciliation of sales to adjusted sales and of EBITDA to adjusted operating result (adjusted EBIT) in 2024

€ millions	Tires	ContiTech	Other/ Holding/ Consolidation	Continental Group
Sales	13,861	6,387	–171	20,077
Changes in the scope of consolidation1	–11	—	—	–11
Adjusted sales	13,850	6,387	–171	20,066
EBITDA	2,663	562	–70	3,154
Depreciation and amortization2	–792	–303	–16	–1,111
EBIT	1,870	259	–86	2,043
Amortization of intangible assets from purchase price allocation (PPA)	6	48	—	54
Changes in the scope of consolidation1	0	—	0	0
Special effects
Impairment on goodwill	—	—	—	—
Impairment3	0	1	—	2
Restructuring4	–5	11	—	6
Restructuring-related expenses	21	2	—	23
Severance payments	10	41	–1	49
Gains and losses from disposals of companies and business operations	3	—	—	3
Other5	–1	29	4	32
Adjusted operating result (adjusted EBIT)	1,903	392	–83	2,212

1 Changes in the scope of consolidation include additions and disposals as part of share and asset deals. Adjustments were made for additions in the reporting year and for disposals in the comparative period of the prior year.
2 Excluding impairment on financial investments.
3 Impairment also includes necessary reversals of impairment losses. It does not include impairment that arose in connection with a restructuring and impairment on financial investments and goodwill.
4 Includes restructuring-related impairment losses totaling €5 million (Tires €2 million; ContiTech €3 million).

5 Mainly includes expenses in connection with the OESL business area being made organizationally independent.

Reconciliation of EBIT to net income

€ millions	2025	2024
Tires	1,776	1,870
ContiTech	–556	259
Other/Holding/Consolidation	–948	–86
EBIT	272	2,043
Financial result	–303	–287
Earnings before tax from continuing operations	–31	1,756
Income tax expense	–384	–398
Earnings after tax from continuing operations	–415	1,358
Earnings after tax from discontinued operations	280	–159
Net income	–135	1,200
Non-controlling interests	–30	–32
Net income attributable to the shareholders of the parent	–165	1,168

 

Segment report by region

€ millions	Germany	Europe excluding Germany	North America	Asia-Pacific	Other countries	Continental Group
External sales 2025	2,817	6,869	5,757	3,069	1,163	19,676
External sales 2024	2,760	7,001	6,008	3,176	1,132	20,077
Capital expenditure 20251	168	487	338	251	72	1,316
Capital expenditure 20241	148	436	320	268	79	1,251
Segment assets as at Dec. 31, 2025	2,557	4,357	4,228	2,596	766	14,504
Segment assets as at Dec. 31, 2024	2,405	4,480	4,775	2,804	762	15,226
Number of employees as at Dec. 31, 20252	19,753	33,881	17,179	14,624	7,216	92,653
thereof direct employees2	9,680	23,885	12,357	9,596	5,458	60,976
thereof indirect employees2	10,073	9,996	4,822	5,028	1,758	31,677
Number of employees as at Dec. 31, 20242	20,785	35,245	18,491	15,301	7,596	97,418
thereof direct employees2	10,125	25,443	13,394	10,188	5,787	64,937
thereof indirect employees2	10,660	9,802	5,097	5,113	1,809	32,481

1 Capital expenditure on property, plant and equipment, and software.

2 Excluding trainees.

Reconciliation to operating assets in 2025

€ millions	Tires	ContiTech	Other/ Holding/ Consolidation	Continental Group
Total assets	10,591	3,759	3,442	17,792
Cash and cash equivalents	—	—	1,503	1,503
Short- and long-term derivative instruments, interest-bearing investments	—	—	169	169
Other financial assets	30	2	16	48
Less financial assets	30	2	1,688	1,720
Less other non-operating assets	29	26	448	503
Deferred tax assets	—	—	907	907
Income tax receivables	—	—	157	157
Less income tax assets	—	—	1,065	1,065
Segment assets	10,531	3,731	241	14,504
Total liabilities and provisions	3,983	1,966	7,685	13,634
Short- and long-term indebtedness	—	—	6,826	6,826
Other financial liabilities	—	—	7	7
Less financial liabilities	—	—	6,833	6,833
Deferred tax liabilities	—	—	72	72
Income tax payables	—	—	284	284
Less income tax liabilities	—	—	356	356
Less other non-operating liabilities	689	512	284	1,486
Segment liabilities	3,294	1,453	212	4,959
Operating assets	7,238	2,278	30	9,545

 

 

Reconciliation to operating assets in 2024

€ millions	Tires	ContiTech	Other/ Holding/ Consolidation	Continental Group
Total assets	10,826	4,434	6,559	21,818
Cash and cash equivalents	—	—	2,966	2,966
Short- and long-term derivative instruments, interest-bearing investments	—	—	231	231
Other financial assets	36	11	21	67
Less financial assets	36	11	3,218	3,264
Less other non-operating assets	–7	7	519	520
Deferred tax assets	—	—	2,523	2,523
Income tax receivables	—	—	285	285
Less income tax assets	—	—	2,808	2,808
Segment assets	10,798	4,415	13	15,226
Total liabilities and provisions	4,138	1,916	8,220	14,275
Short- and long-term indebtedness	—	—	6,909	6,909
Other financial liabilities	—	—	20	20
Less financial liabilities	—	—	6,929	6,929
Deferred tax liabilities	—	—	97	97
Income tax payables	—	—	531	531
Less income tax liabilities	—	—	628	628
Less other non-operating liabilities	718	561	532	1,811
Segment liabilities	3,421	1,355	131	4,906
Operating assets	7,377	3,060	–117	10,320