Audi Group (AUDI) Q4 2024 earnings summary

Executive summary

• 2024 was marked by a challenging economic environment, supply bottlenecks, increased competition (notably from China), and regulatory uncertainty, prompting strategic transformation, workforce agreements, and a major model initiative with over 20 new models, half electric.

• Audi Group implemented cost measures, digitalization, and partnerships (notably with Rivian), while reaching a joint agreement for the future with the Works Council, including job reductions and significant investments in German sites.

• Model updates and changeovers, as well as subdued demand and regulatory uncertainty, impacted operations.

Financial highlights

• Revenue declined 7.6% year-over-year to €64.5bn, mainly due to lower vehicle volumes, price pressure, and model changeovers.

• Deliveries fell 11.8% to 1,692,548 units, with a 12% decline in Brand Group Progressive.

• Operating profit dropped to €3.9bn (6.0% margin), impacted by lower volume and €1.6bn restructuring expenses from the Brussels plant closure.

• Net cash flow decreased 35% to €3.1bn, reflecting lower profit, negative working capital, and higher investments.

• BEV deliveries declined 8%, with BEV share of deliveries at 9.7–9.8%.

Outlook and guidance

• FY2025 guidance: deliveries expected between 1.7m–1.8m units, revenue €67.5bn–€72.5bn, operating margin 7–9%, CapEx/investment ratio 10–12%, and net cash flow €3–4bn.

• The share of all-electric models is expected to grow, with continued focus on model launches and transformation.

• Guidance excludes potential impacts from tariffs, further restructuring, or CO₂ regulation changes.

• Medium-term return target for the Audi brand remains at 11%, with a long-term ambition of 13%.