Continental Aktiengesellschaft (CON) AI Stock Analysis

Company Guidance

For full year 2026, Continental narrowed continuing-operations sales guidance to around EUR 13.5 billion to EUR 13.9 billion, raised adjusted EBIT margin guidance to around 13.4% to 14%, and raised adjusted free cash flow guidance to around EUR 1.0 billion to EUR 1.3 billion; EMEA sales are expected around the previous year level with margin slightly above the prior year, Americas sales slightly below prior year with margin around the range of the previous year, and APAC sales and margin slightly above the prior year comparison base, based on a 4% to 5% sales corridor and a margin corridor of 1 percentage points. ContiTech sales guidance was narrowed to around EUR 4.2 billion to EUR 4.4 billion, with adjusted EBIT margin of around 6.5% to 7.5% before IFRS 5 implications. For Q4, the company expects volume pressure, sequentially higher raw material costs, a significantly higher drop on EBIT, price/mix to remain strong but potentially slightly lower than Q3, FX slightly positive, no additional IEEPA refunds, and a mid-to-high double-digit euro million amount of raw-material impact, so Q4 margins are not expected to repeat Q3; for 2027, raw-material headwind is expected to be almost entirely concentrated in H1 '27 with a peak in Q1, with H2 broadly neutral to slightly positive and the full-year headwind in the low to mid-triple-digit million euro range, while holding costs are assumed at EUR 30 million to EUR 35 million.