BMW Group (BMW) Q1 2026 (Q&A) earnings summary

Executive summary

• Management emphasized resilience and flexibility amid volatile markets, with robust performance and strategic adaptability, particularly in China and the U.S.

• Leadership transition and disciplined cost management were highlighted, with a solid start to 2026 despite challenging global conditions and negative market developments in China and the US.

• Group EBT margin reached 7.6%, matching the previous full-year level, with EBT of €2,348 million, despite lower revenues year-over-year.

• Free cash flow in the Automotive segment rose 88.1% year-over-year to €777 million, driven by reduced capital expenditure.

• Order intake in Europe hit record levels, with all-electric vehicle orders up over 60% year-over-year.

Financial highlights

• Group revenues declined 8.1% year-over-year to €31,007 million, with profit before tax down 24.6% to €2,348 million.

• Net profit decreased 23.1% year-over-year to €1,672 million; EPS dropped 20.7% to €2.68.

• Automotive segment EBIT margin at 5.0%, within guidance, and free cash flow surged 88.1% to €777 million.

• Financial Services segment PBT fell 41.4% to €381 million, impacted by higher risk provisions in the UK.

• Cost-saving measures, improved manufacturing and warranty costs, and reduced administrative and sales expenses contributed positively.

Outlook and guidance

• Full-year 2026 guidance confirmed, with Automotive EBIT margin expected in the 4–6% range and ROCE at 6–10%.

• Global automobile markets expected to decline slightly in 2026; downside risks remain elevated due to geopolitical tensions and trade policy.

• Positive momentum expected from BEV order intake, especially with the iX3 and Neue Klasse launches.

• Cost-saving initiatives and fixed cost reductions to continue through 2026-2028.

• Guidance unchanged despite a more cautious China outlook; seasonality and external factors may affect quarterly results.