Tires

• Sales down 0.5%
• Sales up 2.4% before changes in the scope of consolidation and exchange-rate effects
• Adjusted EBIT down 1.8%

Tires in € millions	2025	2024	Δ in %
Sales	13,798	13,861	–0.5
EBITDA	2,595	2,663	–2.5
in % of sales	18.8	19.2
EBIT	1,776	1,870	–5.1
in % of sales	12.9	13.5
Depreciation and amortization1	819	792	3.4
thereof impairment2	17	2	691.1
Capital expenditure3	1,035	996	3.9
in % of sales	7.5	7.2
Operating assets as at Dec. 31	7,238	7,377	–1.9
Operating assets (average)	7,632	7,517	1.5
ROCE in %	23.3	24.9
Number of employees as at Dec. 314	56,187	57,069	–1.5
Adjusted sales5	13,798	13,850	–0.4
Adjusted operating result (adjusted EBIT)6	1,870	1,903	–1.8
in % of adjusted sales	13.6	13.7

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.

Structure

The Tires group sector (70% of consolidated sales) offers a premium portfolio of innovative tire solutions for the passenger car, truck, bus, two-wheeler and specialty segment, 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 group sector contributes to safe, efficient and convenient mobility. In the reporting year, the group sector was divided into five business areas:

• Original Equipment
• Replacement APAC
• Replacement EMEA
• Replacement The Americas
• Specialty Tires

As part of a realignment, the Original Equipment and Specialty Tires business areas were transferred to regional business areas effective January 1, 2026.

Business and sales performance

Sales in the Tires group sector contracted slightly to €13,798 million (PY: €13,861 million) on the back of negative exchange-rate effects coupled with weak demand in the original-equipment business for passenger cars and in the truck-tire segment. This was offset by growth in the global replacement markets for car tires as well as continued positive mix effects in sales. Before changes in the scope of consolidation and exchange-rate effects, sales rose by 2.4%.

Adjusted EBIT

Adjusted EBIT for the Tires group sector decreased by €34 million or 1.8% year-on-year in 2025 to €1,870 million (PY: €1,903 million), corresponding to 13.6% (PY: 13.7%) of adjusted sales.

EBIT

The Tires group sector reported a year-on-year decline in EBIT of €94 million or 5.1% to €1,776 million in 2025 (PY: €1,870 million). The return on sales fell to 12.9% (PY: 13.5%). The cost of sales fell by €15 million to €9,747 million (PY: €9,762 million). This was primarily due to lower sales and exchange-rate effects, whereas higher raw material and tariff costs increased production and distribution expenses compared with the previous year. Earnings were also impacted by expenses related to the closure of the production site in Alor Setar, Malaysia, the discontinuation of truck tire production in Modipuram, India, and the withdrawal from the agricultural segment in Lousado, Portugal. These negative effects were only partially offset by favorable mix effects and rigorous fixed-cost management.

The amortization of intangible assets from purchase price allocation (PPA) reduced EBIT by €4 million (PY: €6 million).

For the Tires group sector, total consolidated expense from special effects in 2025 amounted to €89 million (PY: €27 million). For further details, please see our comments on pages 49 and 50 regarding the special effects in 2025 and 2024.

The ROCE was 23.3% (PY: 24.9%).

Procurement

Prices on the steel, chemicals and textiles markets fell on average over the course of the year. While market prices for natural rubber on the Singapore Commodity Exchange remained largely stable year-on-year, the anticipated EU Deforestation Regulation led to an increase in purchase prices for natural rubber and related input materials.

Market prices for butadiene rose slightly at the start of the year but declined significantly in the second half of 2025 compared with the previous year. The price level for crude-oil-based semifinished products increased slightly in the first quarter but steadily decreased from the second quarter onward. The import tariffs imposed in the USA placed a noticeable strain on costs over the course of the year.

Depreciation and amortization

Depreciation and amortization increased by €27 million compared with fiscal 2024 to €819 million (PY: €792 million) and amounted to 5.9% of sales (PY: 5.7%). It included impairment totaling €17 million in 2025 (PY: €2 million).

Operating assets

Operating assets in the Tires group sector decreased by €139 million year-on-year to €7,238 million (PY: €7,377 million) as at December 31, 2025.

Working capital was down €115 million at €3,098 million (PY: €3,213 million). Inventories decreased by €186 million to €2,398 million (PY: €2,584 million). Operating receivables fell by €125 million to €2,460 million (PY: €2,585 million) as at the reporting date. Operating liabilities were down €196 million at €1,760 million (PY: €1,956 million).

Non-current operating assets were down €26 million at €5,439 million (PY: €5,464 million). Goodwill fell on the back of exchange-rate effects by €15 million to €392 million (PY: €407 million). Property, plant and equipment rose by €15 million to €4,899 million (PY: €4,884 million). Other intangible assets fell by €7 million to €18 million (PY: €26 million). Amortization of intangible assets from purchase price allocation (PPA) in the amount of €4 million (PY: €6 million) reduced the value of intangible assets.

The sale of certain operations in the Replacement EMEA business area decreased the operating assets of the Tires group sector by €10 million. Operating assets also fell by €1 million due to the settlement of a purchase price receivable from the previous year.

Exchange-rate effects negatively impacted the total operating assets of the Tires group sector by €387 million in the reporting year (PY: positive impact of €105 million).

Average operating assets in the Tires group sector increased by €114 million compared with fiscal 2024 to €7,632 million (PY: €7,517 million).

Capital expenditure (additions)

Additions in the Tires group sector increased by €38 million year-on-year to €1,035 million (PY: €996 million). The capital expenditure ratio was 7.5% (PY: 7.2%).

Investments were mainly made to optimize and expand production capacity at existing plants in European best-cost locations and in the USA, Thailand, Germany, China and Brazil. There were major additions related to the expansion of production sites in Rayong, Thailand; Mount Vernon, Illinois, USA; and Hefei, China. Quality assurance and cost-cutting measures were implemented as well. To further strengthen our customer-focused supply chains, we also invested during the reporting year in the establishment of a dedicated regional distribution center in the USA.

Employees

The number of employees in the Tires group sector fell by 882 to 56,187 as at December 31, 2025 (PY: 57,069). This was primarily due to adjustments to demand-driven production.