BMW Group (BMW) Q4 2024 earnings summary

Executive summary

• Over 2.45 million vehicles were delivered in 2024, with growth in all regions except China and a strong focus on innovation, electrification, and sustainability, particularly through the Neue Klasse project.

• Battery-electric vehicle (BEV) sales rose 13.5% year-over-year, now 17.4% of total sales, with a target of over 50% BEV share by 2030.

• The company maintained premium segment leadership globally, with notable growth in Europe and the U.S., and resilient performance in China despite headwinds.

• Robust profitability was achieved: Group EBT margin at 10.3%, automotive EBIT margin at 8.6%, and strong free cash flow above €4 billion.

• R&D and CapEx peaked in 2024 to support future model launches, with a planned decrease in 2025 as Neue Klasse production ramps up.

Financial highlights

• Group revenues reached EUR 142.4 billion, with Group EBT for 2024 at €15.86 billion and an EBT margin of 10.3%.

• Automotive segment EBIT was €9.87 billion (8.6% margin); Motorrad EBIT margin was 8.1%; Financial Services EBT was €2.27 billion (15.1% ROE).

• Free cash flow in the automotive segment was €6.07 billion, even after significant CapEx and R&D investments.

• Dividend payout proposed at €4.30 per common share, totaling €2.7 billion (payout ratio 30.6%-36.7%).

• CapEx and R&D peaked at €9.06 billion and €7.18 billion respectively in 2024, both expected to decrease in 2025.

Outlook and guidance

• 2025 guidance anticipates a slight increase in vehicle deliveries, automotive EBIT margin between 5%-7%, and Group EBT at previous year's level.

• Free cash flow in the automotive segment is expected to exceed €5 billion.

• R&D and CapEx ratios will decline toward strategic corridors (R&D: 4%-5%, CapEx: <5%) by 2027.

• Return on capital employed in automotive expected at 9%-13%; Financial Services ROE at 13%-16%.

• BEV share expected to exceed 50% of global sales by 2030.