BMW Issues Second Profit Warning in a Year
BMW said one-off restructuring costs and 8,000 planned layoffs could push its car division to a small operating loss this year.
- 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.
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99 Articles
The German car manufacturer BMW reduced its financial estimates for 2026 for the second time this year, after decreasing profitability and increasing restructuring costs. The company accelerates staff reductions and reorganisation of activities, in an attempt to counter the decline in sales in China and pressures on the European car industry, reports Reuters.
The CEO of the BMW group, Milan Nedeljkovic, has lowered the profit forecasts for 2026. Now previews a lower volume of deliveries and an operating profit margin in the division of cars between -0.5% and +0.5%, against a margin between 1% and 3%.
BMW is challenged on all sides, and this is affecting the company's expected profits.
German carmaker BMW's operating profit fell 35.2 percent year-on-year to 5.2 billion euros ($5.8 billion) in the first nine months of the year, the lowest level for the period since 2020. According to the daily newspaper "Die Welt", the Munich-based carmaker also reported a drop in revenue and profit in the third quarter, citing the sharp decline in the Chinese car market. Revenue fell 5.8 percent year-on-year to 30.45 billion euros while earnin…
The car manufacturer has to reduce its forecast again and expand the job reduction. Chief Financial Officer Mertl speaks of "use moment".
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