BMW Group (BMW) Q1 2025 (Q&A) earnings summary

Executive summary

• Management expects current U.S. tariffs to be temporary, with ongoing negotiations likely leading to some relief or adaptation in the coming months, possibly around July or later in the year.

• The company maintains a positive outlook for U.S. growth, supported by significant local investment and a strong export profile.

• In China, despite a weak start to the year and ongoing dealer network restructuring, management still guides for flat or flattish volumes for the full year, expecting improvement in the second half.

• Pre-tax earnings exceeded €3 billion, with a Group EBT margin of 9.2% in Q1 2025, aligning with expectations and guidance.

• Fully electric vehicles (BEVs) drove growth, with deliveries up 32.4% year-over-year and over a quarter of all vehicles delivered electrified.

Financial highlights

• Group pre-tax earnings (EBT) were €3,113 million, down 25.2% year-over-year.

• Net profit totaled €2,173 million, a 26.4% decrease from Q1 2024.

• Automotive segment revenues fell 5.6% to €29,211 million.

• Free cash flow in the Automotive segment was €413 million, down from €1,283 million in Q1 2024.

• Earnings per share of both common and preferred stock were €3.38, down 23.5% year-over-year.

Outlook and guidance

• Full-year automotive margin guidance remains at 5%-7%, with management confident in achieving this despite tariff headwinds and market volatility.

• Full-year guidance confirmed, expecting slight sales growth and a higher share of BEVs.

• Automotive EBIT margin forecasted at 5.0-7.0%, with ROCE between 9-13%.

• Q2 margin is expected to be below the full-year range due to tariff effects, but mitigation measures and relief are anticipated in H2.

• Group EBT for 2025 expected to be on par with the previous year.