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

Executive summary

• Management remains optimistic about resolving U.S.-EU automotive tariffs, viewing current threats as negotiation tactics rather than imminent policy changes.

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

• Free cash flow in the Automotive segment rose 88.1% 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.

• The business model is described as resilient and "antifragile," leveraging global diversification and technology openness to adapt to market shifts.

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.

• Automotive EBIT margin was 5.0%, within guidance but down from 6.9% last year; EBIT fell 33.5% to €1,345 million.

• Net profit fell 23.1% to €1,672 million; EPS dropped 20.7% to €2.68.

• Automotive free cash flow: €777 million (+88.1%).

• BEV (battery electric vehicle) demand in Europe rose by over 60% year-over-year in Q1.

Outlook and guidance

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

• Group expects moderate decline in EBT for 2026, with deliveries and BEV share stable year-over-year.

• The second half of the year is expected to show improved momentum, driven by the rollout of Neue Klasse models.

• Currency headwinds and tariffs will continue to be a burden in Q2, but optimism remains for H2 recovery.

• Ongoing cost discipline and further reductions in capital expenditure, R&D, and operating expenses planned.