BMW Group (BMW) Q1 2026 (Media Q&A) earnings summary

Executive summary

• Management remains optimistic about resolving U.S.-EU automotive tariffs, viewing current threats as negotiation tactics and expecting a deal soon, which would benefit profitability.

• Group EBT margin reached 7.6%, matching the previous full-year level, with EBT of €2,348 million, despite a challenging environment and lower revenues year-over-year.

• Free cash flow in the Automotive segment rose 88.1% to €777 million, driven by reduced capital expenditure.

• Order intake in Europe hit record levels, with all-electric vehicle orders up over 60% year-over-year.

• The Chinese market is down overall, but the company is less affected due to strong brand value, dealer network optimization, and product measures, expecting stabilization later in the year.

Financial highlights

• Group revenues declined 8.1% to €31,007 million, mainly due to adverse currency effects and lower sales volumes.

• Net profit fell 23.1% to €1,672 million; EPS dropped 20.7% to €2.68.

• Automotive EBIT margin was 5.0%, within guidance but down from 6.9% last year; EBIT fell 33.5% to €1,345 million.

• Automotive free cash flow: €777 million (+88.1% year-over-year).

• BEV (battery electric vehicle) demand in Europe increased by over 60% year-over-year in Q1.

Outlook and guidance

• Full-year 2026 guidance confirmed, with Automotive EBIT margin expected in the 4–6% range and ROCE at 6–10%.

• Group expects moderate decline in EBT for 2026, with deliveries and BEV share stable year-over-year.

• Management expects the first half of the year to be the trough, with improvement anticipated in the second half as Neue Klasse rollout accelerates.

• Ongoing cost discipline and further reductions in capital expenditure, R&D, and operating expenses planned.

• Financial Services ROE expected between 13–16%; Motorcycles EBIT margin 4–6%.