BMW Group (BMW) Q2 2026 (Media Q&A) earnings summary

Executive summary

• Announced a comprehensive restructuring and reorganization program, including workforce reductions and a severance program, to streamline processes and enhance efficiency across sales, procurement, development, and technology functions.

• Group profit before tax fell 29.4% year-over-year to €4,045 million for H1 2026, with revenues down 8.0% to €62,266 million, mainly due to a sharp downturn in China and negative currency effects.

• Deliveries declined 4.2% to 1,156,727 vehicles, but Europe (+5.4%) and the USA (+3.9%) saw growth, offsetting a 20.4% drop in China.

• BEV deliveries in Europe rose by over one-third in Q2, with BEVs making up 19.8% of Q2 deliveries, but H1 BEV deliveries fell 7.4% due to subsidy expiries in the US and China.

• Emphasized the use of AI and digital tools to improve decision-making, reduce specialization silos, and enable smaller, more agile teams.

Financial highlights

• Group revenues for H1 2026 were €62,266 million, down 8.0% year-over-year; Q2 revenues were €31,259 million, down 7.9%.

• Net profit for H1 2026 was €2,872 million, down 28.5% year-over-year; Q2 net profit was €1,200 million, down 34.9%.

• Automotive segment EBIT margin was 2.3% in Q2 (down from 5.4%); H1 margin was 3.6% (down from 6.2%).

• Free cash flow in the Automotive segment was €513 million in Q2 (down 73.4%) and €1,290 million in H1 (down 45.0%).

• Earnings per share for H1 were €4.73, down 24.1% year-over-year.

Outlook and guidance

• Guidance for 2026 confirmed: slight decline in Automotive deliveries, EBIT margin of 1-3%, significant decrease in Group EBT, Automotive RoCE of 1-5%, Financial Services ROE of 13-16%.

• Transformation and process analysis expected to continue over the next 12-18 months, with initial results anticipated soon and full implementation by end of next year.

• Motorcycles segment expected to deliver in line with previous year, with EBIT margin of 4.0-6.0% and ROCE of 10-14%.

• Group profit before tax expected to decrease significantly for the full year.

• Optimism for the Neue Klasse model ramp-up in China, with positive early feedback and expectations for strong market performance.