Volkswagen Group reported a sharp decline in profitability in FY25, with earnings after tax falling 44.3% year-on-year as operating performance weakened even though revenue remained broadly stable.
For the full year, earnings after tax amounted to €6.90bn ($8.04bn).
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Revenue reached €321.91bn, representing a 0.8% decline compared with FY2024.
Operating result dropped more significantly, decreasing 53.5% to €8.86bn.
The reduction in operating result was attributed to US tariffs, expenses associated with adjustments to the Porsche product strategy, as well as currency movements and price and mix effects.
Positive contributions from cost programmes helped partially offset these pressures.
Stripping out both the special items such as restructuring charges, Porsche-related costs and the tariff effects, operating profit would have been €17.7bn.
The group sold 9.022 million vehicles during 2025, broadly unchanged from 9.037 million sold in the previous year.
Battery electric vehicles (BEVs) remained an important demand driver.
Orders for BEVs rose by around 55%, representing approximately 22% of the total order bank.
Sales increased in Europe by 5% and South America by 10%, while volumes declined in North America by 12% and China by 6% amid difficult market conditions.
Performance also softened in the final quarter of the year.
In Q4 FY2025, sales revenue totalled €83.24bn, a 4.7% decrease compared with the same period a year earlier.
Operating result for the quarter declined 44.6% to €3.46bn.
Quarterly earnings after tax reached €3.49bn, down 1.7% year-on-year.
Headcount declined slightly, with the company employing approximately 662,900 people as of 31 December 2025, representing a 2.4% reduction.
The board plans to propose a dividend of €5.26 per preferred share and €5.20 per ordinary share for the 2025 fiscal year, a 17% decrease compared with the previous year.
Volkswagen Group CEO Oliver Blume said: “In 2025 we put the new strength of the Volkswagen Group on the road and kept our company firmly on track, despite increasing global headwinds. We saw strong market demand for our innovative, exciting products, which won numerous prestigious awards.”
Looking ahead, the company expects sales revenue in 2026 to increase between 0% and 3% compared with 2025.
The group said its outlook reflects potential challenges from macroeconomic conditions, international trade uncertainty, and geopolitical tensions.
It also cited rising competition, volatility in commodity, energy and foreign exchange markets, and emissions-related regulatory requirements.
The forecast assumes that current international trade tariffs remain unchanged.
