Volkswagen Group (VOW) Q1 2026 earnings summary

Executive summary

• New electric models launched in Europe, including CUPRA UrbanRebel, ID. Polo, and Cupra Raval, driving strong regional momentum and order intake.

• Deliveries to customers declined 4% year-over-year to 2.0–2.05 million units, mainly due to drops in the U.S., China, and Asia-Pacific, but growth in Europe and South America.

• Revenues fell 2–2.5% to €75.7 billion, with operating profit at €2.5 billion and a return on sales of 3.3%.

• Significant cost reductions and restructuring measures implemented, including a reduction of 29,000–30,000 headcount since 2023.

• Portfolio measures included the sale of Bugatti Rimac stake, Sinotruk share placement, and increased Rivian stake.

Financial highlights

• Group sales revenue declined by 2–2.5% year-over-year to €75.7 billion.

• Operating profit dropped 14% to €2.5 billion, with a margin of 3.3%.

• Automotive net cash flow was €2.0 billion, up from minus €0.8 billion in Q1 2025; net liquidity stood at €34.2 billion.

• Special effects, including the end of ID.4 production in Chattanooga and restructuring at Traton, impacted results by €0.8 billion.

• Earnings per ordinary share: €2.55 (down from €3.63); per preferred share: €2.61 (down from €3.69).

Outlook and guidance

• Full-year 2026 outlook confirmed: sales revenue expected to grow 0–3%, operating margin 4.0–5.5%.

• Automotive investment ratio forecasted at 11–12%; net cash flow between €3–6 billion.

• Margin target of 8–10% by 2030, with transformation plan steps to bridge current gaps.

• Deliveries to customers anticipated to remain at prior-year levels amid challenging market conditions.

• Proportionate operating result from China JVs expected at €0.2–0.6 billion for 2026.