Continental AG posted robust financial results for the second quarter of 2025 with strong margins pick-up in its Automotive division as it prepares for a phased stock market listing on September 18.
The group reported consolidated sales of €9.6 billion, down 4.1 percent on the same period in 2024, while adjusted EBIT was €834 million with an 8.7 percent margin. Without the accounting impact of IFRS 5, EBIT would have been €597 million, a 6.2 percent margin. Net income sped up to €506 million, a 66 percent increase on the same period in 2024.
CEO Nikolai Setzer said that the company’s efforts to position its business segments “more resilient and agile” were paying off, giving Automotive “positive momentum” ahead of spin-off. CFO Olaf Schick added that adjusted operating profit and free cash flow rose in the first half of 2025, despite market volatility.
Global car manufacturing rose 3 percent to 22.7 million vehicles in Q2, though Continental’s geographic diversification into sales meant only flat growth compared with last year. Manufacturing fell 2 percent in Europe, 3 percent in North America, but rose more than 9 percent in China.
The Automotive segment recorded €4.7 billion in sales with an 9 percent adjusted EBIT margin. Even excluding the effects of IFRS 5, profitability was at the high end of Continental’s guidance at up to 4 percent. Strong orders of €5.7 billion were dominated by satellite cameras, brake systems, and electronic control units. Continental also established a semiconductor development team in partnership with Global Foundries and launched a second-generation smart tachograph for trucks to meet EU regulation.
Tire revenues declined slightly to €3.3 billion, yet the business still generated a healthy double-digit EBIT margin of 12 percent despite tariffs and currency headwinds. Continental further asserted its premium brand leadership as its SportContact 7, UltraContact NXT, and PremiumContact 7 were awarded top marks in independent tire tests. Sales of ultra-high-performance Continental tires have grown significantly, now representing more than half of the company’s global passenger car and light truck tire sales.
ContiTech sales increased to €1.6 billion with a margin of 5.8 percent, compared to the earlier first quarter. New products such as heat-resistant cooling hoses for data centers are helping the division expand into future markets while remaining cost-disciplined at the same time. Continental expects to drive additional growth in Tires and ContiTech in the second half of 2025, with Automotive spin-off continuing on its path to become an even stronger independent listed company.