Volkswagen Shares Gain On Positive FY26 Outlook, Despite Weak Q4

(RTTNews) - Shares of Volkswagen AG were gaining around 4 percent in the morning trade in Germany after the auto major issued fiscal 2026 outlook, expecting growth in operating margin and sales. This was despite reporting lower profit in its fourth quarter with weak vehicle production and sales. Further, the firm trimmed its annual dividend.

In the fourth quarter and fiscal 2025, the results were particularly impacted by U.S tariffs, geopolitical tensions, and intense competitive pressure.

Looking ahead for fiscal 2026, Volkswagen expects its sales revenue to develop within a range of 0 percent to up 3 percent compared to the previous year. The Group's operating return on sales is expected to range between 4.0 percent and 5.5 percent.

In fiscal 2025, the company's sales revenue was 321.913 billion euros, down 0.8 percent year-over-year, and operating return on sales was 2.8 percent. Adjusted for special effects, but including U.S. tariffs, operating margin amounted to 4.6 percent in 2025.

The company noted that challenges are anticipated from the macroeconomic environment, uncertainties regarding trade restrictions and geopolitical tensions, increasing competitive intensity, as well as volatile commodity, energy, and foreign exchange markets.

Further, the Board of Management and the Supervisory Board will propose a dividend of 5.26 euros per preferred share and 5.20 euros per ordinary share for the 2025 fiscal year to the Annual General Meeting in June, a decrease of 17 percent compared to the previous year.

In the fourth quarter, the company's earnings after tax stood at 3.50 billion euros, down 1.7 percent from the previous year's 3.56 billion euros. Earnings before tax were 3.25 billion euros, an year-over-year decline of 26.1 percent.

The operating result was 3.46 billion euros, a decrease of 44.6 percent compared to the previous year. The operating return on sales was 4.2 percent, down from 7.2 percent in the prior year.

Sales revenue for the quarter declined 4.7 percent to 83.25 billion euros from 87.38 billion euros last year.

Deliveries to customers fell by 4.9 percent year-over-year to 2.38 million units. Vehicle sales declined 5.1 percent to 2.44 million units, and production decreased 4.3 percent to 2.22 million units.

On the XETRA, Volkswagen shares were trading at 92.50 euros, up 3.58 percent.

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