Overview
- In mid‑June 2026 BMW formally downgraded its full‑year guidance, saying it now expects a significant drop in pre‑tax profit and a slight fall in vehicle deliveries compared with 2025.
- The company cut its automotive EBIT margin forecast to 1–3 percent for 2026, down from a prior 4–6 percent range, and reduced ROCE guidance for the division.
- BMW blamed an accelerated slump in the Chinese passenger car market, especially for combustion models, and rising energy and confidence pressures tied to the Middle East conflict for the weaker outlook.
- Management said it will intensify and speed up efficiency and structural measures that will produce a one‑time negative earnings charge in H2 2026 while keeping automotive free cashflow guidance above €2.5 billion and its dividend and buyback plans intact.
- The company reiterated that the NEUE KLASSE product rollout remains on schedule and said the moves aim to protect cash generation and long‑term competitiveness even as short‑term earnings and jobs may face pressure.