BMW Issues Second Profit Warning in a Year
BMW now sees its core auto margin near break-even as 8,000 job cuts and restructuring costs weigh on earnings, the company said.
- On Tuesday, BMW cut its 2026 automotive EBIT margin outlook to between-0.5% and +0.5%, marking the second reduction in five months as restructuring costs and weakening Chinese demand pressured profits.
- The automaker is accelerating its structural realignment, which involves around 8,000 job cuts, to "expand and intensify portfolio and structural measures" and restore investor confidence amid market pressures.
- Competitors Mercedes-Benz and Volkswagen have also issued profit warnings this year, facing intense competition in China where local customers increasingly prefer cheaper home-grown brands over premium German models.
- Frankfurt-Listed shares fell 3.4% as the group prepares to report third-quarter results on Wednesday, though BMW still anticipates automotive free cash flow of more than $2.8 billion.
- While deliveries are expected to fall more steeply than anticipated, strong demand for new Neue Klasse models requires extra shifts as BMW implements management reductions faster than announced.
76 Articles
76 Articles
The automobile manufacturer BMW has issued a so-called profit warning to its shareholders.
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