BMW Margins in Q3 Higher Than Expected

The BMW Group (BMW.DE) reported solid results for the third quarter of 2025 with pre-tax profit of €2.329 billion (compared to €838 million in Q3 2024), representing an increase of 178%. Revenue remained at the previous year’s level of €32.314 billion. For the first nine months of 2025, revenues fell by 5.6% to €99.999 billion, while pre-tax profit fell by 9.1% to €8.056 billion.

Car deliveries rose by 8.7% in Q3 to 588,140 units and reached 1,795,734 units for the first year, an increase of 2.4%. The BMW brand delivered 1,585,382 cars (+0.1% year-on-year), MINI achieved impressive growth of 23.7% to 206,252 units, and Rolls-Royce increased by 3.3% to 4,100 cars. Electrification is progressing rapidly – battery electric vehicles (BEVs) accounted for 18% of deliveries for the nine months, while the total number of electromobility vehicles (BEVs + PHEVs) reached 26.2% (470,287 units).

The EBIT margin for the Automotive segment was 5.2% in Q3 (compared to 2.3% a year earlier) and 5.9% for the nine months (compared to 6.6% a year earlier).

However, it is important to note that US tariffs reduced the EBIT margin by approximately 1.5 percentage points for the nine months, while planned depreciation from the acquisition of BMW Brilliance reduced the margin by a further 1.1 percentage points. BMW has lowered its forecasts for 2025. The Automotive EBIT margin is now expected to be 5-6% (compared to the previous forecast of 5-7%) due to China and tariffs. Deliveries are expected to increase slightly year-on-year, but the share of BEVs is expected to remain at the previous year’s level (compared to the previous growth forecast) due to weaker BEV sales in China and the US. RoCE for the Automotive segment is expected to be 8-10% (down from 9-13%).

BMW Q3 2025 key results:

• Deliveries: 588,140 vehicles (+8.7% y/y), totaling 1,795,734 units for the first nine months (+2.4%)
• Revenue: €32.3 billion in Q3 (unchanged y/y), total €99.999 billion for 9 months (-5.6%) – €33.84 billion expected in Q3
• Earnings before taxes (EBT): €2.329 billion in Q3 (compared to €838 million a year earlier) – a significant improvement
• Automotive EBIT margin: 5.2% in Q3 (target: 5-7%), 5.9% for 9 months – 4.9% expected in Q3
• Cash flows: Free cash flows for the Automotive segment amounted to €2.688 billion (vs. -€191 million a year earlier).

Outlook for 2025: BMW expects an EBIT margin of 5-6% for the automotive segment (down from 5-7%) due to China and tariffs.

BMW has resumed its third share buyback program worth up to €2 billion (€750 million for common shares, €350 million for preferred shares) for the period from May 21, 2025, to April 30, 2027. By September 30, BMW had repurchased 5.05 million ordinary shares for €413 million and 1.19 million preferred shares for €91 million.

The company’s shares are trading at mixed levels during today’s session in response to the results. At present, the shares are up 0.5%, but remain below the 200-day exponential moving average (the gold curve on the chart), which may act as a long-term barrier to the trend.

Source: xStation

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