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

Executive summary

• Delivered over 2.46 million vehicles in 2025, with BEV sales exceeding 440,000 units and a 17.9% share of total sales, marking a new all-time high.

• Group earnings before tax exceeded €10 billion for 2025, maintaining a stable EBT margin year-over-year despite tariff headwinds.

• Maintained strong profitability and disciplined cost management, including a €2.5 billion reduction in expenses.

• Continued focus on electrification, digitalization, and sustainability, with significant investments in battery technology and production footprint.

• Successfully navigated 2025 challenges, including tariffs, currency fluctuations, and intense competition in China, while delivering on key operational KPIs.

Financial highlights

• Revenues for 2025 were €133,453 million, down 6.3% year-over-year, impacted by competition and currency effects.

• Group profit exceeded €10 billion in 2025, with a stable EBT margin of 7.7%.

• Automotive EBIT margin was 7.4% in 2025, with a strategic target of 8-10%, but actual 2025 margin was 5.3% due to tariff impacts.

• Free cash flow in the automotive segment reached €3.2 billion at year-end 2025.

• Dividend payout ratio suggested at 36.6%, with €4.40 per ordinary share proposed for 2025.

Outlook and guidance

• 2026 guidance anticipates a moderate group profit decline of 10%-15% and lower EBIT margin due to ongoing tariff, currency, and raw material headwinds.

• Automotive and motorcycle segments forecast EBIT margin of 4-6% for 2026; Financial Services RoE expected at 13-16%.

• 2026 guidance incorporates assumptions of tariff reductions in the EU and USMCA regions in the second half of the year.

• Cost reductions targeted across CapEx, R&D, and SG&A, with a focus on disciplined expense management.

• Group expects to maintain or slightly improve sales volumes in China, with profitability stabilization as a key focus.