Continental (CON GY) prelim. FY25 based on Q4 results (EUR): Sales 19.7bln (guided 19.5-21bln), adj. EBIT margin 13.6% (guided 12.5-14%), ContiTech sales c. 6bln (guided 6-6.5bln), ContiTech adj. EBIT margin c. 4.9% (guided 6-7%)

• ContiTech: "The lower-than-expected earnings are mainly due to the lack of market recovery in the past quarter, transformation expenses, currency and valuation effects, and the deferral of certain earnings-safeguarding measures to subsequent quarters."

Continental's preliminary FY25 results indicate mixed performance, with sales narrowly beating guidance but the adjusted EBIT margin falling short. The disappointing EBIT margin for ContiTech suggests ongoing challenges, including transformation costs and currency impacts, which could raise concerns about the recovery trajectory in the sector. Traders should watch for potential adjustments in market sentiment towards automakers and parts suppliers based on these results.