Company Reports

Aumovio was spun out of Continental on Sept. 18, 2025, given the vastly different growth profile, capital expenditures requirements, and pace of industry evolution between the automotive parts businesses and the mature tires business.

Aumovio's second-quarter underlying sales declined 8.6%, and adjusted EBIT declined 9.2%, with a stable margin of 3.5% and free cash flow relatively flat. For the half-year, adjusted EBIT is flat, and normalized free cash flow improved 34%, despite sales being 8% lower.

Aumovio was spun out of Continental on Sept. 18, 2025, given the vastly different growth profile, capital expenditures requirements, and pace of industry evolution between the automotive parts businesses and the mature tires business.

Aumovio reported first-quarter adjusted EBIT of EUR 106 million, ahead of market expectations. However, shares fell 4% at the time of writing, as a weaker order intake and declining adjusted sales likely weighed on investor sentiment. Full-year guidance was reaffirmed.

Aumovio’s fourth-quarter sales declined 8%, while adjusted EBIT margin improved to 6.8%. Full-year results met guidance, with adjusted EBIT up 45% to EUR 717 million despite a 5% decline in sales. The 2026 outlook points to continued top-line pressure but leaves room for margin improvement.

Aumovio announced it will cut up to 4,000 jobs during 2026 in an effort to increase the competitiveness of its research and development activities. Management reiterated its objective to reduce the R&D expense ratio to below 10% by 2027, compared with 11.9% reported in the third quarter of 2025.

Aumovio's third-quarter sales and adjusted EBIT declined 6% and 30%, respectively. Year to date, adjusted EBIT is 146% higher, reflecting the successful implementation of the fixed-cost savings program. Targeted lifetime savings have been increased to EUR 500 million from EUR 400 million.

Aumovio was spun out of Continental on Sept. 18, 2025, given the vastly different growth profile, capital expenditures requirements, and pace of industry evolution between the automotive parts businesses and the mature tires business.