BMW Group has lowered its 2026 automotive earnings before interest and tax (EBIT) margin forecast to between -0.5% and +0.5% amid accelerated structural realignment measures.
The revised outlook compares with a previous range of 1% to 3%.
Although the underlying operative EBIT margin before restructuring is projected to exceed 2% for the full year, fourth-quarter portfolio and structural measures will generate an estimated 2.5 percentage point non-operational drag.
The automotive outcome also faces pressures from higher import tariffs and the depreciation and amortisation of BMW Brilliance Automotive (BBA) assets from purchase price allocation.
According to the company, demand for the Neue Klasse generation prompted these portfolio shifts.
Additional production shifts introduced early facilitated a faster ramp-up, prompting the company to retire older vehicle and technology generations earlier than scheduled, including certain models using Gen5 battery technology.
Its Gen6 technology features in models including the BMW iX3, BMW i3, BMW i7, BMW iX4, and BMW iX5.
Concurrently, management cuts are progressing faster than initially planned, alongside wider integration of agentic artificial intelligence in procurement planning and customer offers.
BMW CFO Walter Mertl said: “Speed is a key success factor in our planned realignment. That is why we are intensifying measures to enhance efficiency and streamline structures already this year. In doing so, we intend to strengthen our future margins and be on course to deliver our profitability targets.”
During the third quarter of 2026, group revenue dropped 5.8% year-on-year to €30.45bn ($34.23bn), or 7.7% after currency adjustments.
Group profit before tax slipped 10.6% to €2.08bn, while net profit fell 14.7% to €1.45bn.
Automotive segment revenue fell 6.5% to €26.67bn, and segment EBIT dropped 39.7% to €901m
Third-quarter group vehicle deliveries fell 6.3% to 551,075 units, bringing the nine-month total to 1,707,802 units, a 4.9% decline.
A 25% drop in Chinese deliveries, matching broader market contraction, offset quarterly growth of 2.6% in Europe and 2.5% in the US.
Fully electric models represented 20% of quarterly group sales, rising to 27.4% when including plug-in hybrids.
For the first nine months of 2026, group revenue declined 7.3% to €92.71bn, EBIT decreased 35.2% to €5.22bn, and net profit fell 24.4% to €4.32bn.
