Considering the situation of the other German “competitors,” starting with Volkswagen and its subsidiary Porsche, BMW can all in all say it has limited the damage during 2025, a horrendous year for Western automotive.
BMW’S 2025 IN NUMBERS
The Munich-based company closed the 2025 fiscal year with a net profit of 7.45 billion euros, recording a 3% decline compared to the previous year. Despite revenues falling by 6.3% to 133.45 billion euros, the German premium segment brand managed to keep the pre-tax profit margin (EBT) stable at 7.7%, thanks to strict cost discipline that allowed savings of 2.5 billion euros. The automotive segment suffered the most pressure: EBIT collapsed by 20.7%, with a margin steady at 5.3% compared to 6.3% in 2024.
TARIFF BURDEN SLOWS GERMAN CARS
BMW highlighted that the impact of customs tariffs imposed by Donald Trump eroded the margin by about 1.5 percentage points. Global deliveries still increased (+0.5%), with strong growth in Europe (+7.3%) and the Americas (+5.6%) compensating for the heavy 12.5% drop recorded in China. Positive data on electric vehicles: battery electric vehicle (BEV) sales grew by 3.6%, representing almost 18% of total sales.
VERY LITTLE OPTIMISM FOR 2026
The board proposed a dividend of 4.40 euros per ordinary share, maintaining a payout ratio of 36.6%. The conversion of preferred shares into ordinary shares at a 1:1 ratio was also proposed. While BMW closed 2025 limiting the damage compared to other German companies, the outlook for 2026 still indicates a further deterioration of conditions. The company expects tariffs to weigh on the automotive EBIT margin by another 1.25%, estimating a range for the current year between 4% and 6%. The German manufacturer led by Oliver Zipse aims for automotive free cash flow exceeding 4.5 billion euros for the current year.
