Key facts
- BMW said the 2026 automotive EBIT margin is now forecast at negative 0.5% to positive 0.5%, down from 1-3%.
- BMW forecast a moderate decrease in 2026 automotive segment deliveries, which it said equates to a decline of 5-9.9%.
- BMW said automotive free cash flow is still seen at more than €2.5 billion ($2.8 billion).
- BMW said it will cut management functions faster than announced as it accelerates its organizational realignment.
- Frankfurt-listed BMW shares were 3.4% lower at 2040 GMT, ahead of third-quarter results due on Wednesday.
- BMW attributed the cut to a non-operating hit from expanding and intensifying portfolio and structural measures.
BMW cut the profit margin outlook for its core automotive business on November 3 for the second time in five months, pointing to one-off costs from accelerating job cuts and restructuring it launched in 2026 as demand in China weakened.
The Munich-based carmaker said its 2026 automotive EBIT margin was now forecast at between negative 0.5% and positive 0.5%, down from 1-3%. It cited a non-operating hit to profit from its decision to "expand and intensify portfolio and structural measures".
BMW also forecast a moderate decrease in automotive segment deliveries in 2026, which it said equates to a decline of 5-9.9%. Automotive free cash flow was still seen at more than €2.5 billion ($2.8 billion).
The automaker said it intends to accelerate its organizational realignment and will cut management functions faster than announced. It recently unveiled plans to restore investor confidence, including around 8,000 job cuts, after a string of profit warnings tied to China.
Frankfurt-listed BMW shares were 3.4% lower at 2040 GMT. The group is due to report third-quarter results on Wednesday.
BMW's warning follows a raft of profit downgrades from German automakers. Mercedes-Benz cut its profit outlook the previous week, citing prolonged weakness in China, the world's top auto market. The weakness has been particularly tough for established premium automakers, whose local customers increasingly favor cheaper home-grown brands, removing a previously reliable profit stream.