BMW warns on profit again, with job cuts among the reasons, Handelsblatt reports
The carmaker's restructuring costs arrive before its savings, and it now expects fewer cars to be delivered this year.
BMW has warned on profit again, months after its June warning, Handelsblatt reports. It expects its car business to earn less, and it says the job-cut programme, which is driving savings, is one of the reasons.
Investing.com, citing BMW's updated guidance on Tuesday, says the carmaker now expects a 2026 automotive EBIT margin (operating profit as a share of sales) of -0.5% to +0.5%. It puts automotive return on capital employed, which measures profit against the money tied up in the business, at -1% to +1%. In June the margin range was 1% to 3%, cut from 4% to 6%, Yahoo Finance reported.
Investing.com says BMW attributed the change to an expansion of its portfolio and structural measures. Deliveries are now expected to fall moderately, where the June guidance said slightly. Automotive free cash flow is still expected above €2.50bn.
The June warning was BMW's third in just over three years and cited weakness in China, Reuters reported. BMW said then that its structural and efficiency measures would carry a one-time negative earnings impact in the second half of 2026, with the benefits coming in later years, Yahoo Finance reported.
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