BMW Cuts FY2026 Automotive EBIT Margin Guidance to -0.5%–+0.5%
BMW lowered its automotive EBIT margin forecast from 1%–3%, while maintaining its automotive free cash flow target above €2.5 billion. The company cited accelerated restructuring and portfolio optimization.
BMW AG has adjusted its financial guidance for the 2026 fiscal year, citing the need to accelerate restructuring and portfolio optimization measures. The company now expects an EBIT margin for the automotive segment in the range of -0.5% to +0.5%, down from its previous forecast of 1% to 3%. This decision follows a third-quarter performance where net profit fell 15% year-over-year to €1.45 billion, impacted by weakness in the Chinese market. Management intends to use the momentum from current cost-cutting and workforce reduction efforts to strengthen long-term competitiveness and support the rollout of its 'Neue Klasse' electric vehicle models.
Despite the margin cut, the company maintains its free cash flow target for the automotive segment at over €2.5 billion.