Audi Group (AUDI) Q1 2026 earnings summary

Executive summary

• Revenue declined 8% year-over-year to €14.2 billion, with operating profit rising to €588 million (4.2% margin), supported by cost discipline and lower CO₂ provision expenses.

• Deliveries fell 6% year-over-year to 365,000 units, with growth in Germany and Europe but declines globally due to economic headwinds, US tariffs, and competition.

• Net cash flow improved to €883 million from -€61 million, driven by working capital optimization and disciplined spending.

• Strategic focus on restructuring, cost discipline, and targeted investments amid economic and geopolitical challenges.

• Electrified vehicles comprised 20% of deliveries, with PHEV deliveries up over 150% year-over-year, but BEV demand declined due to subsidy changes.

Financial highlights

• Operating profit rose nearly 10% to €588 million, with margin improving to 4.2% from 3.5% year-over-year.

• Net cash flow surged to €883 million, attributed to working capital improvements and lower investments.

• Cash R&D spending decreased 3% to €1,033 million, and capital expenditure dropped 37% to €331 million.

• Investment ratio was 9.6% (down from 10.3%), with guidance for 2026 between 11.0% and 13.0%.

• Net liquidity decreased to €20.5 billion from €22.8 billion at year-end 2025.

Outlook and guidance

• 2026 guidance: deliveries between 1,650,000 and 1,750,000 units; revenue between €63bn and €68bn; operating margin 6–8%; net cash flow €3–4 billion; investment ratio 11–13%.

• Guidance is based on current tariff situations; further geopolitical escalations are not factored in.