Europe · Business news · Corporate · 17 Jun 2026
BMW lowered its 2026 outlook, cutting the EBIT margin target for its automotive division to 1%-3% from 4%-6% and its return on capital employed target to 1%-5% from 6%-10%. The carmaker now sees a significant decline in group pre-tax profit from €10.2 billion in 2025 and slightly lower vehicle deliveries rather than stable ones. It cited weakening demand and tougher competition in China and the effect of the Iran war on energy costs and consumer sentiment, and announced restructuring. Its shares fell 7%.
The warning shows the China slowdown and the energy shock eating into premium carmakers' profitability, a read-across for Mercedes-Benz, Porsche and Volkswagen's Audi, and for suppliers such as Continental and Schaeffler. Lower margins reduce the cash available for dividends and buybacks across the sector, although BMW kept its automotive free cash flow target of more than €2.5 billion and its 30%-40% payout policy.
Reported by Euronews — “BMW warns of 'significant' profit decline as shares fall 7%” ↗ on 17 Jun 2026.
Official series on 17 Jun 2026 or the last day before it, and the latest observation.
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