BMW profit down by a quarter in Q1

BMW has reported a decline in first-quarter earnings before tax, with figures down by 24.6% compared to the same period last year. The decrease can be attributed to tariffs in the US and a slowdown in demand in China. Despite these challenges, analysts remain optimistic about BMW’s future performance, with the company forecasting overall deliveries for 2026 to be on par with the previous year.

In Q1, BMW Group revenue fell by 8.1% to €31.0 billion, while the EBIT margin for the core automotive line exceeded expectations at 5.0%, compared to 6.9% in Q1 2025. Looking ahead, BMW anticipates a lesser impact from tariffs for the remainder of the year, with a slight decrease expected in the global automotive market.

Chairman of the Board of Management of BMW AG, Oliver Zipse, highlighted the success of the company’s broad product range in Europe, where they received record orders in the first quarter. Zipse emphasized the importance of offering a variety of drivetrains to cater to customer preferences, pointing to the positive reception of the BMW iX3 and BMW i3 models as evidence of their strategic decisions.

BMW’s vehicle deliveries in Europe saw a 3.1% increase across all drivetrains, with battery-electric vehicles accounting for 25.3% of sales in the region. The company remains confident in meeting the EU CO2 targets for 2026. In contrast, sales in the Americas region declined by 4.0%, while China experienced a 10% decrease in deliveries due to a sharp contraction in the overall market.

The future outlook for BMW looks promising, with a focus on incorporating new technology clusters and design language across all future models as part of the Neue Klasse initiative. By elevating their product portfolio, BMW aims to stay ahead of the competition and meet evolving customer demands.

This article was rewritten based on the original content from Just Auto, providing valuable insights into BMW’s performance in the first quarter of the year. As BMW navigates through challenges in various markets, the company’s strategic decisions and product innovations position them for continued success in the automotive industry.