Continental posts Q2 profit beat, flags higher raw material costs
German car parts supplier Continental AG reported adjusted earnings before interest and taxes of €570 million ($656 million) for the second quarter, beating analyst expectations. Tyre volumes fell 2.3% year‑on‑year, but the tyre unit’s adjusted operating margin rose to 15.3%, above the target range of 13%‑14.5%.
The company kept its annual guidance for the core tyre business unchanged while warning that raw‑material tailwinds that helped the first half of 2026 will reverse, leading to a triple‑digit‑million‑euro cost hit in the second half of the year. Continental also confirmed the sale of its rubber and plastic division, ContiTech, agreed in July, and now projects full‑year sales of €13.2‑€14.2 billion with an adjusted operating margin of 12%‑13.5% at group level.
Entities: Continental AG · Contitech · Hanover · Roland Welzbacher
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 3 SOURCES] Continental forecasts full‑year sales of €13.2‑€14.2 billion and an adjusted operating margin of 12%‑13.5% at group level. (Continental AG)
- [● 3 SOURCES] Continental agreed to sell its rubber and plastic division ContiTech in July. (Continental AG)
- [● 3 SOURCES] Tyre volumes declined 2.3% in the second quarter. (Continental AG)
- [● 3 SOURCES] The tyre unit's adjusted operating margin rose to 15.3%, above the target range of 13%‑14.5%. (Continental AG)
- [● 3 SOURCES] Continental beat second‑quarter profit expectations. (Continental AG)
- [● 3 SOURCES] Continental expects a triple‑digit‑million‑euro hit from raw‑material costs in the latter half of 2026. (Continental AG)
- [● 3 SOURCES] Continental kept its annual guidance for the core tyre business unchanged. (Continental AG)
- [● 3 SOURCES] Continental's adjusted earnings before interest and taxes were €570 million ($656 million). (Continental AG)