Continental Q1 Profit Beats Estimates on Tyre Margins, Cost Cuts

German car parts supplier Continental on Wednesday posted higher-than-expected operating profit for the first quarter, citing cost cuts, lower raw material prices and a focus on high-margin tyres. The company reported first-quarter adjusted earnings before interest and tax of 522 million euros ($612.41 million), up 6.1% from the 492 million in the same quarter of 2025, which beat the 499.5 million euro analyst consensus provided by the company. The Hanover-based tyre maker confirmed its full-year outlook, despite the ongoing conflict in the Middle East and weak global markets. "It will take time for recent changes in raw material prices to have an impact on us. We are analysing and assessing the situation and, where necessary, are taking measures to safeguard earnings," finance chief Roland Welzbacher said. Car parts makers in Europe have been grappling with a host of challenges, including U.S. tariffs, weaker demand, intensifying competition from Chinese rivals and supply chain disruptions.