Volkswagen (VOW) Q4 2025 earnings summary

Executive summary

• Delivered nearly 9 million vehicles in 2025, with BEV deliveries up 32% to 983,000 units, representing 11% of total deliveries and strong growth in Europe.

• Group revenues reached €322 billion, with operating profit at €8.9 billion, down 53% year-over-year due to special items, U.S. tariffs, and restructuring.

• Maintained robust net liquidity at €34.5 billion and improved net cash flow to €6.4 billion, supported by inventory reduction and working capital management.

• Proposed dividend of €5.26 per preferred share, maintaining a payout ratio of at least 30%, adjusted for goodwill impairment.

• Significant progress in cost reduction, with German factory costs down over 20%, workforce realignment delivering €1 billion in savings, and a 4% workforce reduction in Germany.

Financial highlights

• Operating margin for 2025 was 2.8% reported, 4.6% adjusted for special items and tariffs, and 5.5% excluding both.

• Profit after tax declined 44% to €6.9 billion; EPS down 38% to €13.4; tax rate stable at 26%.

• Automotive investment ratio reduced to 11.8% of net revenues, below forecast.

• Net cash flow improvement driven by inventory reduction and disciplined CapEx and R&D spending.

• Dividend proposal: €5.26 per preferred share, €5.20 per ordinary share, down 17% year-over-year.

Outlook and guidance

• 2026 sales revenue expected to grow 0%-3%; operating margin forecasted at 4%-5.5%.

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

• Investment ratio in Automotive Division to be 11%-12% in 2026, aiming for 9% by 2030.

• Long-term ambition: operating margin of 8%-10% and cash conversion above 60% by 2030.

• Strategic priorities for 2026 include model offensive, cost reduction acceleration, and enhanced group steering.