BMW Group (BMW) Q4 2025 (Media Q&A) earnings summary

Executive summary

• Neue Klasse ramp-up is underway, with iX3 and i3 launches expected to drive growth, especially in Europe, followed by the US and China later in the year.

• Margin parity between EVs and combustion models has been achieved in some European markets, with strategic focus on maintaining 8%-10% margins medium-term.

• Group earnings before tax (EBT) exceeded €10 billion for 2025, maintaining a stable EBT margin of 7.7% despite tariff headwinds.

• BEV share is expected to remain at prior-year levels (~18%) in 2026 due to phased global rollout, with significant growth anticipated from 2027 onward.

• Workforce optimization continues via automation and digitalization, with no planned headcount reductions and ongoing investment in employee training.

Financial highlights

• Group revenues for 2025 were €133,453 million, down 6.3% year-over-year, mainly due to competition and currency effects.

• Automotive EBIT margin was 5.3% (within the 5–7% target), down from 6.3% in 2024.

• BEV sales grew to 442,056 units (+3.6% year-over-year), now 17.9% of total sales; electrified vehicles (BEV + PHEV) made up 25% of deliveries.

• Transaction prices in China have stabilized and improved slightly compared to Q3, with sales in early 2026 matching expectations.

• Residual values for used cars are declining from previous highs, with regional differences observed.

Outlook and guidance

• Sales volumes in 2026 expected to remain stable globally, with growth in Europe and the USA, and China at prior-year levels.

• Automotive EBIT margin forecasted at 4–6% for 2026, with ROCE between 6–10%.

• BEV share could reach 50% globally by 2030, with growth slowing thereafter as market equilibrium is reached.

• Moderate decline in Group EBT anticipated for 2026 due to tariffs, currency, and raw material headwinds.

• Strategic goal remains 8%-10% margin for cars, with ongoing focus on cost control and investment discipline.