German automotive parts manufacturer Continental announced Wednesday its expectations for relatively unchanged sales and profit margins in its tire division through 2026, despite facing continued market uncertainty.
The tire manufacturer projects revenue for its primary business segment will range from 13.2 billion to 14.2 billion euros ($15.3 billion to $16.5 billion), compared to 13.8 billion euros recorded in 2025. This midpoint projection falls slightly short of analyst predictions of 14.0 billion euros.
For adjusted operating profit margins in the tire segment, Continental forecasts a range of 13.0% to 14.5%, versus 13.6% achieved last year and below the 14% average analyst expectation listed on Continental’s website.
German automakers and parts suppliers continue facing significant headwinds including U.S. trade tariffs, declining consumer demand, growing competition from Chinese manufacturers, unfavorable currency exchange rates, and supply chain disruptions that are pressuring profit margins and creating business uncertainty.
Looking ahead to 2026, Continental anticipates worldwide replacement tire demand for passenger vehicles will either decline by 1% or grow by up to 2%, while passenger car and light commercial vehicle manufacturing is expected to remain flat or drop by as much as 2%.
The company noted in its statement that these projections do not account for any potential effects from the ongoing military conflict in the Middle East.
Continental, which is currently executing a significant corporate restructuring to transform into a specialized tire company, confirmed it completed the divestiture of its Original Equipment Solutions division in February.
