BMW Group (BMW) Q3 2024 earnings summary

Executive summary

• Q3 results were impacted by temporary delivery stops due to a supplier issue with the integrated braking system (IBS) and muted demand in China, leading to lower sales and earnings.

• BEV deliveries rose 19.1% year-over-year, offsetting declines in total vehicle deliveries; BEVs made up 16.8% of nine-month deliveries and 19.1% in Q3.

• Group profit before tax fell 79.4% in Q3 to €838 million, mainly due to IBS-related delivery stops and higher warranty costs.

• The company maintains global leadership in the premium segment and remains committed to electrification, digitalization, and innovation, with the Neue Klasse platform launching in 2025.

• Significant investments in R&D and production continue, with consistent shareholder returns through dividends and share buybacks.

Financial highlights

• Q3 revenues: €32.4 billion (-15.7% year-over-year); nine months: €105.96 billion (-5.8%).

• Q3 EBIT: €1.7 billion; Group EBT: €838 million; EBT margin: 2.6%.

• Automotive EBIT margin: 2.3% in Q3, 6.6% year-to-date; expectation for 2024 is 6–7%.

• Free cash flow in automotive segment: -€2.5 billion in Q3; -€191 million year-to-date; 2024 target >€4 billion.

• BEV deliveries up 19.1% year-over-year to 375,716 units YTD 09-2024; BEVs now 15% of total sales.

Outlook and guidance

• 2024 profit before tax expected to decrease significantly; automotive deliveries to see a slight decrease; BEV share to increase significantly.

• Automotive EBIT margin and Motorrad EBIT margin both guided at 6–7% for 2024; ROCE between 11–13%.

• Financial Services return on equity expected at 15–18% in 2024.

• Capex ratio expected above 6% in 2024; R&D ratio >5%.

• Guidance assumes no significant deterioration in geopolitical or macroeconomic conditions.