German luxury carmaker BMW Group revised down its 2026 financial outlook due to a deeper slowdown in China, higher energy costs linked to the Middle East conflict, and accelerated corporate restructuring measures, the company said Wednesday.
The Munich-based automaker said it now expects consolidated profits before tax to show a significant decline, compared with its previous forecast for a moderate drop.
BMW also lowered its automotive segment earnings before interest and taxes (EBIT) margin guidance to 1%-3%, down from its earlier forecast range of 4%-6%.
The company said the revision mainly reflected two factors. The contraction in China, BMW’s largest single market, continued to accelerate in the second quarter, while positive sales trends in Europe and the US were not enough to offset the weakness in China.
BMW also said the impact of the Mideast conflict on its global business has gone beyond its original assumptions. Elevated energy prices are weighing on the company’s cost structure, while instability caused by the conflict is negatively affecting consumer sentiment across global markets, it added.
The company also lowered its forecast for return on capital employed in the automotive segment to 1%-5%, compared with its previous guidance of 6%-10%.
BMW shares slumped after the announcement, losing more than 11% in early trading on the Frankfurt Stock Exchange and falling to €60.08 ($69.66), their lowest level since September 2020.
The shares later recovered part of their losses but were still down 6% at €63.55 as of 1000GMT. With the decline, BMW’s shares have lost around 33% since the beginning of the year, while the company’s market value fell below €39 billion.
BMW Group is scheduled to publish its interim report for the first half of 2026 on July 30.
Source: www.aa.com.tr