Volkswagen Group (VOW) Q2 2026 earnings summary

Executive summary

• Sales revenue remained stable at €158.1 billion in H1 2026, but operating profit declined 12% to €5.9 billion due to US tariffs, special effects, and weak China performance.

• Deliveries to customers fell 6.3% year-over-year to 4.1 million vehicles, with sharp declines in China and growth in Europe and the Americas.

• European order book rose 12% year-to-date, with BEV orders up over 50% in Q2 and now accounting for 31% of the order book.

• Group Target Picture 2030 launched, focusing on deep structural transformation, cost reduction, and complexity simplification.

• Management expects improved margins in H2 2026 and robust full-year performance above the prior year.

Financial highlights

• Operating margin was 3.8% (4.3% before special effects), down from 4.2% in H1 2025.

• Profit before tax dropped 26% to €4.8 billion; profit after tax at €3.1 billion; EPS down 36% to €5.11.

• Automotive net cash flow improved to €3.2 billion, up from -€1.4 billion year-over-year; net liquidity at €32.7–32.8 billion.

• Investment ratio at 10.6%, with a target of 9% by 2030.

• Gross margin at 15.3% (down from 16.7%); equity ratio at 30.2%.

Outlook and guidance

• Full-year 2026 sales revenue expected to be flat to 3% below previous year; operating margin guidance at 4.0–5.5%.

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

• Investment ratio targeted at 11–12%; long-term targets: 8–10% operating margin, 12% overhead cost ratio, 9% investment ratio by 2030.

• Guidance excludes potential impacts from further Middle East escalation and the Everllence sale.

• Deliveries to customers expected to decrease by 7.0% to 3.0% in 2026, mainly due to China market weakness.