Volkswagen (VOW) Q1 2025 earnings summary

Executive summary

• Sales revenue increased by 2.8% year-over-year to €77.6 billion, with deliveries up 1.4% to 2.1 million vehicles and BEV deliveries surging 58.9% to 217,000 units, representing 10.2% of total deliveries.

• Strong order intake in Western Europe (+29% YoY), BEV orders up 64%, and order book reaching ~1 million vehicles; growth in North and South America offset a 7% decline in China.

• The group continued its largest product renewal, with 30 new models planned by 2026 and a focus on electrification and cost optimization.

• Despite operational progress, Q1 financial results were muted due to margin dilution from higher BEV share and special items, including restructuring, CO2 provisions, litigation, and tariffs.

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

Financial highlights

• Sales revenue rose 2.8% to €77.6 billion; operating result fell 36.9% to €2.9 billion (margin 3.7%), mainly due to €1.1 billion in adverse factors including CO2 provisions and restructuring.

• Automotive net cash flow was negative at €-0.8 billion, a significant improvement from €-2.5 billion, and net liquidity remained solid at €33.2 billion.

• Special items included €0.6 billion for CO2 provisions, €0.4 billion for restructuring, and €150 million each for diesel and U.S. import duties.

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

• Basic earnings per ordinary share fell to €3.63 (from €6.43); preferred share EPS to €3.69 (from €6.49).

Outlook and guidance

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

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

• Guidance is pre-tariffs; potential tariff impacts, especially from new or higher U.S. import duties, are not included due to uncertainty.