Dear shareholders,
2025 was a year of historic new beginnings for Continental. We are charting new paths and undertaking the most far-reaching transformation in our company’s more than 150-year history.
With the spin-off of Aumovio, the sale of the ContiTech business area for hoses and bearing elements for the automotive industry (Original Equipment Solutions, OESL) and the planned sale of the ContiTech group sector, we are realigning Continental. For the first time in our history, we are creating a focused, global tire manufacturer defined by its outstanding technological capabilities and economic resilience.
For me personally, it is a great honor to take over as CEO at this pivotal time. Having joined Continental nearly 30 years ago, I feel a deep connection to our company and this new responsibility fills me with both respect and pride.
My sincere thanks go to my predecessor, Nikolai Setzer. During the first 10 years of his 16-year tenure on the Executive Board, he was instrumental in the success of the Tires group sector. Subsequently, under his leadership, our automotive business was strategically and structurally reorganized, paving the way for its spin-off last year. As CEO, he successfully steered Continental through the coronavirus pandemic and the semiconductor crisis. In extremely challenging times, he established the organizational and financial conditions required for the independence of the Automotive, Tires and ContiTech group sectors and was a driving force behind our company’s realignment.
The past year was heavily influenced by this realignment. Despite this, we achieved our financial targets for both the Continental Group and the Tires group sector, even with significant headwinds from tariffs and adverse exchange rates. The second half of the year was particularly positive for our tire business. Following the sale of OESL, Conti-Tech is now well positioned for the future with a clear industrial focus. At the same time, weak global industrial production dampened business development, which we countered with systematic measures to safeguard earnings.
Overall, we achieved an adjusted EBIT margin of 10.3 percent in 2025. Our adjusted free cash flow amounted to €959 million, placing it at the upper end of our expectations.
Given this stable cash flow, the Executive Board of Continental is proposing a dividend of €2.70 per share for the past fiscal year. This will allow our shareholders to benefit from our good operational performance.
Our employees, whose hard work and dedication are the foundation of our achievements, will also share in this success. We will be expressing our appreciation financially through our profit-sharing program. I would also like to extend my special thanks for their exceptional commitment under extremely demanding conditions.
Looking ahead to 2026, we anticipate continued geopolitical and economic uncertainty. We expect the global replacement-tire business for passenger cars to develop by ‑1 to 2 percent. In the segment for ultra-high-performance tires in particular, we expect to grow faster than the market thanks to our strong market position. Global passenger-car production is likely to be roughly the same as in 2025, at around 93 million units. While pressure from exchange rates and tariffs is expected to persist, lower costs of raw materials should provide some relief.
In this challenging environment, we are focused on improving our results in the Tires and ContiTech group sectors and consequently for the Continental Group overall. Our operational strength and the measures we have implemented form a solid foundation for this. The adaptability we have demonstrated in recent years is now proving to be a competitive advantage.
The realignment of Continental is progressing well. We aim to complete this transformation In 2026 with the sale of the ContiTech group sector. For the first time in its history, Continental will then become a pure-play tire manufacturer. With our resilient business model, operational strength and outstanding products, combined with our strong brand and unwavering customer focus, we are committed to increasing our return on sales.
We intend to create further value in 2026. And we are delighted to have you, our dear shareholders, by our side on this journey.
Christian Kötz
Chairman of the Executive Board
Christian Kötz
Chairman of the Executive Board
