BMW Group (BMW) Q1 2025 earnings summary

Executive summary

• Delivered over 2.45 million vehicles in 2024, meeting adjusted sales targets, with strong performance in Europe and the Americas, offsetting challenges in China; BEV deliveries surged 32.4% year-over-year, now 18.7% of total sales.

• Profit before tax fell 25.2% year-over-year to €3,113 million in Q1 2025, with revenues down 7.8% to €33,758 million, mainly due to subdued demand and low prices in China.

• Strategic focus on electrification, digitalization, and sustainability, with Neue Klasse platform launching in 2025 to drive efficiency and innovation.

• Demonstrated cost discipline, with reductions in R&D and administrative expenses, and robust shareholder returns via dividends and share buybacks.

• Confirmed 2025 outlook, citing robust demand, a technology-open strategy, and ongoing investment in electrification.

Financial highlights

• Group earnings before tax exceeded €3.1 billion in Q1 2025 on revenues of €33.8 billion; group EBT margin at 9.2%.

• Automotive segment EBIT margin reached 6.9% (8.1% excluding BBA depreciation); group EBITDA margin at 9.2%.

• Free cash flow in the automotive segment was €413 million in Q1 2025, with a 2025 target above €5 billion.

• CapEx for Q1 2025 at €1.2 billion; R&D spending focused on electrification and digitalization.

• Automotive net financial assets stood at €45.5 billion, stable year-over-year.

Outlook and guidance

• Full-year guidance unchanged: group earnings before tax expected at previous year's level; automotive EBIT margin forecast at 5%-7%.

• Automotive segment deliveries forecasted to increase slightly, with BEV share rising; motorcycle EBIT margin expected at 5.5%-7.5%.

• Financial services RoE targeted at 13%-16%; ROCE for Automotive projected at 9%-13%.

• Capex and R&D ratios to decrease from 2024 peaks; capex ratio target <6%, R&D ratio <6%.

• Free cash flow in the automotive segment targeted above €5 billion for 2025.