March 4 (Reuters) – German car parts supplier Continental on Wednesday guided for broadly stable 2026 sales and profitability in its core tyres business in a persistently volatile demand environment.
The company expects annual sales in the core unit to land between 13.2 billion and 14.2 billion euros ($15.3 billion and $16.5 billion), compared with 13.8 billion euros in 2025. At midpoint, the forecast is slightly below a consensus estimate of 14.0 billion euros.
Adjusted operating profit margin is projected between 13.0% and 14.5% for the tyres business, compared with 13.6% last year and analysts’ average estimate of 14% provided on the Continental website.
German car manufacturers and their suppliers have been struggling with U.S. import tariffs, weaker demand, intensifying Chinese competition, negative foreign exchange effects and supply chain changes weighing on margins and creating future uncertainty.
In 2026, Continental expects global replacement tyre demand for passenger cars to be between a 1% decline and a 2% increase, while production of passenger cars and light commercial vehicles is seen stable or falling by up to 2%.
The outlook excludes any potential impact from the escalating military conflict in the Middle East, the tyremaker said in a statement.
Continental, which is undergoing a major restructuring in a push to become a pure‑play tyres company, said the sale of its Original Equipment Solutions unit was completed in February.
($1 = 0.8625 euros)
(Reporting by Amir Orusov in Gdansk, editing by Milla Nissi-Prussak)
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