Continental has confirmed the planned sale of its ContiTech group sector.

The Continental Executive Board reached this decision after analyzing and assessing the possible transaction options for making the group sector independent. Subject to the approval of the Continental Supervisory Board, the sale is scheduled to take place in 2026, after the sale of ContiTech’s Original Equipment Solutions (OESL) business area, which is planned for later this year.

Continental also announced the new mid-term sales and profitability potential for the Continental Group and the Tires and ContiTech group sectors.

The company has adjusted its 2025 sales outlook for the ContiTech group sector to reflect changes in exchange rates. In addition, Continental has updated its margin outlook for the Tires group sector due to changes in exchange rates and increasing global trade barriers. As a result, margin expectations have also been lowered for the Continental Group as a whole.

“For the first time in its history, Continental will become a pure-play tire manufacturer focused on value creation, profitability, cash flow and stable business development. This resilience will benefit all stakeholders,” said Continental CEO Nikolai Setzer in Frankfurt am Main.

“We remain committed to our plan. Following the spin-off of Automotive, Continental will still have high upside potential. We are aiming to deliver an attractive shareholder return,” said Continental CFO Olaf Schick.

The ContiTech group sector will continue to sharpen its focus on the industrial business. After the planned sale of the OESL business area (sales in 2024: around €1.9 billion) in the second half of 2025, approximately 80 percent of sales for ContiTech will be generated from industrial customers. There is high demand among industrial customers for solutions made of rubber and thermoplastic. The customer portfolio is highly diversified in terms of both sectors and regions. The group sector’s core industries currently comprise off-highway mobility, mining, construction and home, energy management and automotive. In 2024, ContiTech excluding OESL achieved sales of around €4.5 billion, of which approximately 41 percent was generated in the EMEA region, 36 percent in North and South America, and 23 percent in the Asia-Pacific region. Around half of the sales are generated in the industrial OEM business and half in the replacement business.