Volkswagen (VOW) Q4 2025 earnings summary

Executive summary

• Delivered nearly 9 million vehicles in 2025, with BEV deliveries up 32% to 983,000 units, representing 11% of total deliveries; sales revenues reached €321.9bn and operating profit was €8.9bn, down 53% due to special items, U.S. tariffs, and restructuring.

• Maintained robust net liquidity at €34.5bn and improved net cash flow to €6.4bn, supported by effective working capital management.

• Strategic priorities for 2026 include continued model offensive, cost reduction acceleration, restructuring, and enhanced group steering.

• Proposed dividend of €5.26 per preferred share, confirming a payout ratio of at least 30%, excluding non-cash Porsche impairment.

• Launched over 60 new or refreshed models in 2025, with strong product renewal and visible progress in transformation programs.

Financial highlights

• BEV share increased to 11% of deliveries, with strong momentum in Europe; operating margin for 2025 was 2.8%, down from 5.9% in 2024, mainly due to €8.8bn in special effects including U.S. tariffs and Porsche-related costs.

• Profit after tax declined 44% to €6.9bn; EPS down 38% to €13.4; tax rate stable at 26%.

• Automotive investment ratio reduced to 11.8% of net revenues, below the forecast range.

• Net cash flow in the Automotive Division rose 24% to €6.4bn; inventories reduced, releasing €4.8bn in Q4.

• Dividend proposal: €5.26 per preferred share, reflecting a 30% payout ratio, adjusted for goodwill impairment.

Outlook and guidance

• 2026 sales revenue expected to grow 0–3%; operating margin forecasted between 4.0% and 5.5%.

• Automotive net cash flow expected between €3–6bn; net liquidity €32–34bn.

• CapEx in automotive division targeted at 11–12% of revenue for 2026, aiming for 9% by 2030.

• Long-term ambition: operating margin of 8–10% and cash conversion above 60% in automotive by 2030.