Overview
- BMW, which reported results Wednesday, posted pretax earnings of €2.35 billion, about 25% lower than a year ago, while its automotive operating margin of 5.0% beat forecasts and lifted the stock about 5–6%.
- Audio’s first quarter showed a fourth straight annual decline in net profit to €559 million, even as fully electric deliveries rose 30.1% to 46,371 vehicles.
- Tariff costs weighed on both groups, with BMW saying duties cut its auto margin by 1.25 percentage points and Audi’s CFO citing a low triple‑digit million‑euro hit from U.S. charges; BMW estimated a proposed 25% U.S. tariff would add roughly €540 million in extra costs.
- China remained a drag on performance, as BMW’s deliveries there fell 10% in a market that shrank 17.5% and Audi’s income from China dropped to €28 million alongside lower deliveries.
- Cash generation and guidance offered support, with BMW’s automotive free cash flow rising to €777 million and both companies maintaining full‑year targets despite warning that further tariff moves or geopolitical shocks could worsen results.