BMW Group (BMW) Q1 2025 (Q&A) earnings summary

Executive summary

• Management expects current U.S. tariffs to be temporary, with ongoing negotiations likely leading to some relief or adaptation in the coming months, possibly around July or later in the year.

• The company maintains a positive outlook for U.S. growth, supported by significant local investment and a strong export profile.

• In China, despite a weak start to the year and ongoing dealer network restructuring, management still guides for flat or flattish volumes for the full year, expecting improvement in the second half.

• Pre-tax earnings (EBT) exceeded €3 billion in Q1 2025, with a Group EBT margin of 9.2%.

• Over a quarter of vehicles delivered were electrified, with BEV deliveries up 32.4% year-over-year.

Financial highlights

• Group revenues: €33,758 million (Q1 2024: €36,614 million, -7.8%).

• Pre-tax earnings (EBT): €3,113 million (Q1 2024: €4,162 million, -25.2%).

• Net profit: €2,173 million (Q1 2024: €2,951 million, -26.4%).

• Earnings per share: €3.38 (Q1 2024: €4.42, -23.5%).

• Automotive free cash flow: €413 million (Q1 2024: €1,283 million).

Outlook and guidance

• Full-year automotive margin guidance remains at 5%-7%, with management confident in achieving this despite tariff headwinds and market volatility.

• Full-year 2025 outlook confirmed: slight sales growth, higher BEV share, Group EBT in line with prior year.

• Automotive EBIT margin forecasted at 5.0–7.0%, ROCE at 9–13%.

• Q2 margin is expected to be below the full-year range due to tariff effects, but mitigation measures and relief are anticipated in H2.

• Risks include further or prolonged tariffs and trade disputes.