Automotive: significant improvement in earnings; EBIT margin at upper end of guidance
The Automotive group sector recorded sales of €4.7 billion in the second quarter (Q2 2024: €5.0 billion, -5.0 percent). Before exchange-rate effects and changes in the scope of consolidation, it posted organic sales growth of -1.2 percent. Its adjusted EBIT margin was 9.0 percent. Even without the application of IFRS 5, its adjusted EBIT margin would have improved significantly to 4.0 percent (Q2 2024: 2.9 percent). Automotive’s earnings in the second quarter were therefore at the upper end of the outlook for the year (adjusted EBIT margin outlook for Automotive: 2.5 to 4.0 percent). It achieved this despite declining automotive markets in Europe and North America. The year-on-year improvement was due to the rigorous implementation of measures to reduce costs as well as sustained price adjustments.
Order intake for the Automotive group sector amounted to €5.7 billion in the second quarter of 2025 and was therefore significantly higher than sales during the quarter. With a volume exceeding €3 billion, orders for satellite cameras, brake systems and electronic control units made a major contribution.
Furthermore, Automotive has established a new unit to develop semiconductors for vehicle electronics, with the aim of further reducing its dependence on suppliers for its future requirements and bringing new technologies to market faster. The Advanced Electronics and Semiconductor Solutions unit will focus on the development of semiconductors, while production will be handled by partner Global Foundries.
The company has also launched an updated, second-generation smart tachograph for trucks. The device automatically detects when a truck crosses a border and securely stores position data thanks to European satellite technology. This innovation helps authorities with conducting checks and fleet operators with planning. In doing so, it meets the requirements of the EU Mobility Package, which stipulates gradual retrofitting of the second-generation smart tachograph: by August 19, 2025, all commercial vehicles over 3.5 tons used in international transport must be equipped with a latest-generation device.
Tires: resilient despite changing conditions
The Tires group sector recorded sales of €3.3 billion in the second quarter (Q2 2024: €3.4 billion,
-2.0 percent). It achieved a double-digit adjusted EBIT margin and was only slightly below the previous year’s level for the first half of the year. In the second quarter, its adjusted EBIT margin was 12.0 percent (Q2 2024: 14.7 percent). The main reasons for the year-on-year decline were US tariff increases, exchange-rate effects and positive catch-up effects in the second quarter of last year.
Tires from Continental are repeatedly recognized for their high quality. In June 2025, Continental’s tires were voted “Quality Winner 2025” following a survey of around 45,000 consumers in Germany conducted by the German Institute for Service Quality (DISQ) in collaboration with news channel n-tv. Furthermore, Continental tires took first place 10 times and second place four times in independent comparison tests in Europe. The SportContact 7 was voted the winner in seven out of eight tests, while the UltraContact NXT achieved top marks for safety and sustainability. The PremiumContact 7 also scored highly in the current season, with British magazine Tyre Reviews declaring it the winner of its summer tire test.
This is also why Continental has a strong position in the market for ultra-high-performance (UHP) tires. UHP tires are technologically sophisticated, available in sizes from 18 inches and designed for safe and dynamic driving at high speeds. Between 2019 and 2024, Continental increased sales of these tires in the passenger car and light truck segment by around 15 percentage points worldwide. Over the same period, the share of sales of UHP tires for all Continental brands rose from 38 to 52 percent, and to 60 percent for the core Continental brand. Five years ago, this figure sat at 46 percent.
ContiTech: increase in adjusted EBIT margin compared with the start of the year
The ContiTech group sector achieved sales of €1.6 billion in the second quarter of 2025 (Q2 2024: €1.6 billion, -5.2 percent). Its adjusted EBIT margin was 5.8 percent (Q2 2024: 7.1 percent), higher than in the first quarter of the year (Q1 2025: 5.4 percent). Earnings improved compared with the start of the year, especially due to higher industrial demand for ContiTech products and stricter cost discipline. The market environment remains gloomy, although there are signs of improvement in Europe as well as North and South America. Exchange rates are also affecting earnings.
Despite the challenging conditions, ContiTech continues to focus on innovation and future-oriented solutions. For example, it introduced new premium cooling hoses for data centers in the past quarter, which ensure stable temperatures for servers and help save energy, prevent malfunctions and extend equipment life. The hoses are extremely heat-resistant and meet strict fire safety standards. They are designed for modern cooling methods, such as direct-to-chip single-phase cooling, and help to reduce energy costs and carbon emissions in data centers.