- Continental’s second-quarter adjusted Ebit was €597 million, a 16% decrease compared to last year, and missed the estimate of €608 million.
- Total sales were reported at €9.6 billion, falling short of the estimate of €9.78 billion.
- Automotive revenue stood at €4.7 billion, down 6% year-over-year, and below the estimated €4.8 billion.
- Tires revenue was €3.3 billion, representing a 2.9% decrease year-over-year, and slightly below the estimate of €3.34 billion.
- ContiTech revenue matched last year’s €1.6 billion and met the estimate of €1.59 billion.
- The adjusted Ebit margin declined to 6.2% from 7.1% last year, missing the estimate of 7.13%.
- Automotive adjusted Ebit margin improved to 4% from 2.9% last year, exceeding the estimate of 3.83%.
- Tires adjusted Ebit margin decreased to 12% from 14.7% last year, below the estimate of 13%.
- ContiTech adjusted Ebit margin fell to 5.8% from 7.1% last year, not reaching the estimate of 7.13%.
- Net income was €506 million, a 66% increase year-over-year, and well above the estimated €384.9 million.
- There was a negative adjusted free cash flow of €166 million, contrasting with the positive €147 million from the previous year.
- Continental plans to list its Automotive division on the stock exchange on September 18, 2025.
- The company aims to improve performance in the Tires and ContiTech sectors in the second half of the year compared to the second quarter.
Continental on Smartkarma
Analyst coverage of Continental on Smartkarma has recently featured Richard Howe‘s report titled “Reviewing the Demerger Arbitrage Setup for Continental AG.” Howe, a renowned analyst on the platform, highlights Continental AG’s (XTRA: CON) upcoming spin-off of its auto parts business as a key factor driving investor interest. The report suggests that this strategic move, slated for late 2025, has the potential to create shareholder value, positioning Continental for future growth. Despite the positive outlook, Howe acknowledges being cautious in his assessment, citing specific factors that have deterred him from immediate investment.
A look at Continental Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Continental shows a promising long-term outlook across various metrics. With strong scores in Value, Dividend, Growth, and Momentum, the company demonstrates robust fundamentals in terms of investment attractiveness. A score of 4 in Value indicates that Continental is seen as having solid investment value compared to its market price. Furthermore, a score of 4 in Dividend suggests that the company is likely to provide good returns to its shareholders through dividend payouts. A score of 4 in Growth hints at Continental’s potential for sustainable expansion and future profitability. Lastly, a Momentum score of 4 implies that the company is witnessing positive price trends, making it an attractive investment option for those seeking growth.
Although Continental scores slightly lower in Resilience with a score of 3, the overall outlook remains positive. This implies that while there may be some volatility or risks present, the company’s strong performance in other areas compensates for this vulnerability. Continental AG, a well-known manufacturer of tires, automotive parts, and industrial products, has a global presence. The company’s diverse product offerings catering to various sectors indicate a solid foundation for continued success in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
