Continental stock rises as tire strength lifts 2026 outlook

Continental raised its 2026 outlook on Wednesday, November 4, after a strong third quarter in its tire business. The company lifted its adjusted EBIT margin and free-cash-flow targets for continuing operations, while warning that higher raw-material costs will put greater pressure on earnings in the final quarter.

Continental stock traded at 75.56 euros on Lang & Schwarz at 11:04 CET on Thursday, November 12, 1.61 percent above the Xetra close of Wednesday, November 11. The comparison uses the 74.36-euro Xetra close for the previous trading session.

Higher Profitability Despite Lower Sales

According to Continental's press release, third-quarter sales from continuing operations fell to 3.5 billion euros from 3.9 billion euros a year earlier. The decline mainly reflected the sale of the Original Equipment Solutions business in February 2026, while organic sales decreased 1.5 percent.

Adjusted EBIT increased to 514 million euros from 482 million euros, lifting the adjusted EBIT margin to 14.9 percent from 13.9 percent. Net income from continuing and discontinued operations reached 349 million euros, compared with a loss of 756 million euros in the prior-year quarter. Adjusted free cash flow from continuing operations declined to 31 million euros from 99 million euros.

Continental said the tire division benefited from stronger sales of ultra-high-performance tires, slightly favorable exchange rates, lower tariff effects and commercial measures addressing higher raw-material costs. Weak automotive markets continued to weigh on original-equipment demand, while replacement markets hurt earnings in North and South America.

Guidance Moves Higher for 2026

For continuing operations, Continental now expects 2026 sales of 13.5 billion to 13.9 billion euros, compared with the previous range of 13.2 billion to 14.2 billion euros. The adjusted EBIT margin target increased to 13.4 percent to 14.0 percent from 12.0 percent to 13.5 percent.

Adjusted free cash flow is now expected at 1.0 billion to 1.3 billion euros, up from the earlier range of 0.7 billion to 1.1 billion euros. Capital expenditure is expected to remain at 7.0 percent to 8.0 percent of sales. Continental CEO Christian Kötz said the company expects its earnings margin and free-cash-flow figures to exceed its initial projections for the year.

The regional outlook highlights a mixed operating environment. Tire sales in EMEA are expected to remain around the prior-year level, with a slightly higher margin. Americas sales are expected to decline slightly, while APAC sales and margin are expected to edge higher.

Raw Materials Raise Fourth-Quarter Risk

CFO Roland Welzbacher said large, high-performance tires remain a key business driver, but higher raw-material prices are increasingly affecting earnings and will have a larger impact in the fourth quarter. Continental also expects fourth-quarter volumes to remain under pressure, making the improved annual guidance dependent more on execution, product mix and cash generation than on stronger end markets.

ContiTech, classified as a discontinued operation, received a lower 2026 outlook. Sales are expected at 4.2 billion to 4.4 billion euros, compared with the previous range of 4.2 billion to 4.8 billion euros, while its adjusted EBIT margin target was reduced to 6.5 percent to 7.5 percent from 7.0 percent to 8.5 percent.

Continental Key Figures

• Company: Continental AG
• ISIN: DE0005439004
• Xetra ticker: CON.DE
• Lang & Schwarz quote: 75.56 euros on November 12, 2026, at 11:04 CET
• Change versus Xetra close: 1.61 percent above the 74.36-euro close from November 11, 2026
• 2026 adjusted EBIT margin guidance: 13.4 percent to 14.0 percent
• 2026 adjusted free-cash-flow guidance: 1.0 billion to 1.3 billion euros

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