Business · Companies · 3 hrs ago
BMW cuts its 2026 profit and return targets again
BMW has cut its 2026 targets for a second time, lowering its forecasts for the automotive business.
It now expects the segment’s EBIT margin to range from -0.5% to +0.5%, down from a previous forecast of 1% to 3%.
Its expected return on capital employed has also fallen, to between -1% and +1% from 1% to 5%.
BMW says new restructuring and portfolio measures will affect fourth-quarter results, although its operating financial performance remained solid in the third quarter.
The company expects automotive deliveries to fall moderately from 2025, while the share of fully electric cars is expected to rise slightly.
Motorcycle deliveries are also forecast to decline slightly.
BMW plans to speed up changes to its organisation and processes, including reducing management positions faster than previously announced.
BMW cut its 2026 forecast for the automotive segment’s EBIT margin to between minus 0.5% and plus 0.5%, from a previous range of 1% to 3%.
The company said it was expanding and intensifying portfolio and structural measures, including speeding up planned management reductions.
BMW also expects its automotive segment’s return on capital employed to be between minus 1% and plus 1%, down from 1% to 5%.
Faster restructuring and costs linked to staff departures are expected to affect results in the fourth quarter.
BMW was due to publish its third-quarter report on Wednesday, November 4.
- Who
- BMW, the Munich-based carmaker.
- What
- It cut its 2026 automotive EBIT margin forecast to between minus 0.5% and plus 0.5%. It also lowered its forecast for return on capital employed.
- When
- November 3, 2026.
- Where
- Not stated.
- Why
- BMW said it had decided to expand and intensify portfolio and structural measures. Faster staff reductions and related costs are also expected to affect results.
This story does not have two clearly opposing sides.
BMW had already lowered its targets, according to ANSA.
BMW announced plans to cut 8,000 jobs, mainly in development and administration rather than production.
BMW launched a severance programme, which it closed in less than three weeks after unexpectedly strong uptake.
BMW lowered its 2026 automotive EBIT margin forecast to between minus 0.5% and plus 0.5%.
- Automotive EBIT margin forecast
- Minus 0.5% to plus 0.5%, down from 1% to 3%
- Automotive return on capital employed forecast
- Minus 1% to plus 1%, down from 1% to 5%
- Planned job cuts
- 8,000
- Severance programme
- Launched in early October; closed in less than three weeks
- Third-quarter report
- Scheduled for November 4, 2026
7 sources
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What people are saying
Although operating financial performance remained solid in the third quarter, the approved measures will have a non-operating impact on the results of the automotive segment in the fourth quarter