BMW Group (BMW) Q2 2024 (Q&A) earnings summary

Executive summary

• Pricing across the portfolio in 2024 is expected to remain at last year's average, with stabilization seen in key markets despite a stepwise decline since Q1 2023.

• Group revenues for H1 2024 were €73,558 million, nearly flat year-over-year (-0.7%), with profit before tax down 14.2% to €8,023 million and net profit down 14.6% to €5,656 million.

• BEV deliveries surged 34.1% year-over-year, now representing 15.7% of total deliveries, while overall vehicle deliveries remained stable at 1,213,276 units (-0.1%).

• EBIT margin in the Automotive segment was 8.6% for H1 2024, within the strategic target range, despite higher costs and competitive pressures.

• The Group confirms its full-year 2024 forecast, expecting slight growth in deliveries and a continued increase in BEV share.

Financial highlights

• Average revenue per vehicle remains stable at €51,000 year-to-date, matching the full-year 2023 average.

• Group revenues: €73,558 million for H1 2024 (-0.7% year-over-year); profit before tax: €8,023 million for H1 2024 (-14.2%).

• Net profit: €5,656 million for H1 2024 (-14.6%).

• Automotive segment free cash flow: €2,289 million for H1 2024 (-27.1%).

• Off-lease residual values and used car prices have normalized, reducing profits from this segment compared to the peak in Q1 2023.

Outlook and guidance

• Full-year 2024 guidance expects volume, mix, and price to be neutral, with positive contributions from new model ramp-ups.

• Automotive EBIT margin forecasted between 8–10% for 2024; ROCE expected between 15–20%.

• BEV share of deliveries projected to increase significantly versus 2023.

• Group profit before tax expected to decrease slightly due to higher R&D and capital expenditure.

• Inventory levels are expected to normalize by year-end, with production aligned to demand.