German automaker BMW Group has reported stable financial results for 2025 but warned that its earnings could face pressure in 2026 due to rising tariffs, weaker sales in China and intensifying competition in the global automotive market.
Speaking during the company’s BMW Group Annual Conference 2026 held on March 12, 2026, the automaker announced that its Group earnings before tax (EBT) for the 2025 financial year reached €10.2 billion.
Despite the solid performance, the company projected that earnings could decline moderately in 2026.
Profit expected to fall slightly
According to the company’s outlook, BMW expects EBT to drop by between 5% and 9.9% in 2026, as the global automotive industry continues to face several economic and geopolitical pressures.
Among the key factors affecting profitability are higher tariffs, ongoing market challenges in China, and growing competition from both traditional automakers and emerging electric vehicle manufacturers.
China remains a crucial market for BMW, but the company revealed that vehicle sales in the country declined notably during the year, contributing to the cautious outlook.
BMW also warned that higher tariffs could significantly affect its automotive profitability.
The company projected that the core automotive earnings before interest and taxes (EBIT) margin will fall within the range of 4% to 6% in 2026. Tariffs alone are estimated to reduce margins by about 1.25 percentage points, adding to the financial strain on the business.
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Despite the expected headwinds, BMW emphasized that it remains committed to its long-term transformation strategy.
A major part of this strategy is continued investment in electrification and next-generation vehicle technology, including the rollout of its new platform known as BMW Neue Klasse.
The Neue Klasse program is expected to play a central role in BMW’s future lineup of electric vehicles, helping the company compete more aggressively in the rapidly evolving EV market.
BMW also indicated that global vehicle deliveries are expected to remain roughly flat in 2026, reflecting the cautious market outlook.
Industry facing global uncertainty
The outlook from BMW highlights the broader challenges facing the global automotive sector, where manufacturers are balancing the high costs of electrification, geopolitical trade tensions and changing consumer demand.
While BMW’s profitability remains strong compared with many competitors, the company acknowledged that the coming year will likely require careful cost management and strategic investments to maintain its competitive position.