Continental Experiences Sales Decline

Continental AG posted $5.1 billion in total sales during the first quarter of 2026, down 10.4% year-over-year.

The Hanover, Germany-based company recorded adjusted EBIT of $613.3 million during the quarter, a 6.1% increase over the same period in 2025.

Continental officials say the company had "a good first quarter. The Tires and ContiTech group sectors both increased their adjusted EBIT margins compared with the same quarter of last year, despite burdens from tariffs and exchange rate effects. Adjusted free cash flow was also up year-on-year."

A look at tires

During the first quarter of 2026, Continental's Tires division achieved sales of $3.8 billion. Sales were negatively impacted by exchange rates and other factors.

However, the Tires business posted EBIT margin of 14.4%, a year-over-year gain of 13.4%. "Contributing to this improvement were the upward trend in the replacement tire business, the successful business in large passenger tires measuring 18 inches and above, lower raw material costs than in the same quarter of last year and a strong focus on costs."

ContiTech results

The company's ContiTech business unit posted sales of $1.4 billion during the first three months of the year, a decline of 24.4% from first quarter of 2025.

Continental officials attribute the drop to the sale of the company's Original Equipment Solutions business in February, as well as "negative exchange rate effects."

However, ContiTech achieved a margin increase during the first quarter of 2026 by focusing on high-margin products and taking advantage of lower raw material costs.

CEO remarks

Commenting on Continental's first quarter results, Christian Kotz, the company's CEO, said the firm "had a good operational start to the year, increasing our profitability in both Tires and ContiTech compared with the same quarter of last year. This gives us momentum.

"At the same time, geopolitical developments are creating greater uncertainty for consumers and for the economy as a whole. This is why we are continuing to work hard on increasing our competitiveness."