Key facts
- BMW has lowered its 2026 profit outlook.
- The company cited an accelerated downturn in China and the impact of the Iran war.
- The expected EBIT margin for BMW's automotive segment is now 1-3%, down from 4-6%.
- Deliveries are now expected to slightly decrease in 2026.
- Group profit before tax is projected to fall significantly (over 15%).
- BMW plans to intensify cost-cutting measures.
German automaker BMW has significantly lowered its 2026 profit outlook, citing an accelerated downturn in the key Chinese market and the impact of the Iran war, which has affected consumer sentiment and raised energy costs. The company now expects an operating margin in its core automotive segment to be between 1% and 3%, a decrease from the previous forecast of 4% to 6%. BMW also anticipates a slight decrease in core deliveries for 2026, contrasting with its prior expectation of on-par performance. Group profit before tax is projected to fall significantly, defined as a drop of more than 15%. In response to the drastic downturn in market conditions, CEO Milan Nedeljković stated that the company will "significantly intensify and accelerate" cost-cutting measures. Shares of the company fell 6.6% following the announcement.