Volkswagen Group (VOW) Q1 2025 earnings summary

Executive summary

• Sales revenue rose 2.8% year-over-year in Q1 2025 to €77.6 billion, with global deliveries up 1.4% to 2.1 million vehicles and BEV deliveries surging 59% to 217,000 units, now 10.2% of total deliveries.

• Strong order intake in Western Europe, up 29–30% year-over-year, with BEV orders up 64% and order book reaching 1 million vehicles.

• Growth in Western Europe, North America, and South America offset a 7% decline in China deliveries.

• Operating result fell 36.9–37% to €2.9 billion (margin 3.7%), impacted by higher BEV share, CO2 provisions, restructuring, and special effects.

• The 'In China, for China' strategy is progressing, with tailored models and accelerated profit contribution expected from 2026.

Financial highlights

• Group sales revenue up 2.8–3% year-over-year to €77.6 billion; vehicle sales at 2.1 million units, up 1.4%.

• Operating margin at 3.7% (down from 6.0% YoY); excluding special effects, margin would have been 5.1%.

• Automotive net liquidity at €33.2 billion; net cash flow at €-0.8 billion, improved by €1.7 billion year-over-year.

• Financial Services operating result up 19–90% to €1.1 billion; return on equity at 12.9%.

• Investment ratio declined to 11.2% of revenue, reflecting lower R&D spend.

Outlook and guidance

• Full-year 2025 guidance confirmed: sales revenue expected to rise up to 5%, operating return on sales in 5.5–6.5% range, trending toward lower end.

• Automotive net cash flow forecasted at €2–5 billion, net liquidity at €34–37 billion.

• Guidance excludes potential effects from new or changed trade tariffs due to uncertainty.