BMW Q4 Profit Up, Volume Down; Sees Weak Earnings In FY26 On Tariff Impact; Plans Dividend Hike

(RTTNews) - BMW Group Thursday reported higher profit in its fourth quarter, even though revenues were hit by weak sales volume. The German automajor also lifted dividend and issued fiscal 2026 outlook, expecting a slight drop in pre-tax earnings amid negative tariff impact on Automotive EBIT margin.

On the XETRA in Germany, the shares were losing around 1.8 percent, trading at 79.40 euros.

Looking ahead for financial year 2026, BMW Group expects a moderate decline in Group earnings before tax.

EBIT margin for the Automotive Segment is expected to be within the range of 4 percent to 6 percent, compared to 5.3 percent in fiscal 2025.

The company projects headwinds from higher tariffs to further impact the EBIT margin in the Automotive Segment by about 1.25 percentage points. Mitigation measures have already been considered.

In the Motorcycles Segment, deliveries are forecast to be on a par with the previous year, with an EBIT margin within the range of 4 percent to 6 percent, compared to 5.7 percent in fiscal 2025.

The global automotive markets are expected to develop in a stable manner, and the firm anticipates growth potential overall for Europe and the USA.

Sales in China are expected to remain approximately at the previous year's level. Globally, the company forecasts that deliveries will be on a par with the previous year and that fully-electric vehicles will account for the same share of sales as last year.

In addition, at this year's Annual General Meeting on May 13, the Boards will propose a dividend of 4. 40 euros per share of common stock and 4.42 euros per share of preferred stock, compared to last year's 4.30 euros and 4.32 euros, respectively.

As part of its previously announced plan, the Board of Management approved a third share repurchase programme with a volume of up to 2 billion euros, to be completed no later than April 30, 2027.

The Board in 2025 announced plan to buy back up to 10 percent of BMW AG's share capital over the next five years.

The Supervisory Board will also propose to the Annual General Meeting that Christian Bruch, Chief Executive Officer of Siemens Energy AG, be newly elected as Board member for a term of four years.

In the fourth quarter, BMW Group's net profit climbed 12.5 percent to 1.74 billion euros from 1.55 billion euros last year. Earnings per share grew 21.2 percent to 2.92 euros from 2.41 euros a year ago.

Profit before tax increased 3.3 percent year-over-year to 2.18 billion euros, and profit before financial result or EBIT went up 12.8 percent to 2.12 billion euros. EBT margin was 6.5 percent, compared to 5.8 percent a year ago.

Revenues for the quarter meanwhile fell 8.1 percent to 33.45 billion euros from 36.42 billion euros last year.

Automotive revenues fell 10.8 percent year-over-year to 30.39 billion euros, and Motorcycles revenues dropped 5.5 percent to 621 million euros.

Automotive deliveries to customers declined 4.1 percent to 667,947 units, with 5.2 percent drop in BMW vehicles to 584,357 units and 10.2 percent decline in Rolls-Royce, despite a4.8 percent rise in MINI.

Motorcycles deliveries fell 7.6 percent to 43,407 units.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com