Volkswagen (VOW) Q2 2025 earnings summary

Executive summary

• Sales revenue for H1 2025 was €158.4 billion, stable year-over-year, with operating result down 33% to €6.7 billion due to US tariffs, restructuring, and CO2 provisions.

• Operating margin was 4.2%; excluding tariffs and restructuring, it was 5.6% for H1 and 6.8% in Q2, within forecast range.

• Deliveries rose 1.3% to 4.4 million units, with strong growth in Europe and South America, but declines in China (-2%) and North America (-7%) due to tariffs.

• BEV deliveries surged 47% to 465,485 units, now 10.6% of group deliveries; BEV share in Western Europe doubled to 20%.

• Order intake in Western Europe up 19%, BEV orders up 62%, with a backlog of 925,000 vehicles.

Financial highlights

• US import tariffs cost €1.3 billion in H1; restructuring costs added €0.7–1.0 billion; CO2 provisions totaled €0.6 billion.

• Net cash flow in the automotive sector was negative at €-1.4 billion, impacted by tariffs, restructuring, and Rivian investment; net liquidity at €28.4 billion at Q2 end, down from €34.4 billion at end-2024.

• Dividend payments of €3.8 billion and M&A outflows of €1.4 billion impacted liquidity.

• CapEx and R&D expenditures declined 6% to €16.3 billion, 11.4% of automotive sales revenue.

• Profit before tax fell 36% to €6.4 billion; profit after tax dropped 38% to €4.5 billion; EPS down 36% to €8.0.

Outlook and guidance

• Full-year 2025 revenue and deliveries expected flat year-over-year; operating margin forecasted at 4.0%–5.0%, depending on US tariff scenario.

• CapEx ratio in automotive division expected at 12%–13%; net cash flow guidance €1–3 billion, net liquidity €31–33 billion.

• Margin guidance assumes 27.5% US tariffs at lower end, 10% at upper end; mitigation measures not yet factored in.

• BEV share expected to continue rising, with negative margin impact.