BMW has lowered its 2026 earnings forecast for a second time, saying its automotive division’s EBIT margin is now expected to fall between minus 0.5% and plus 0.5%. The previous outlook was for a margin of 1% to 3%. EBIT margin measures operating profit against revenue.
The company attributed the revised forecast to a board decision to broaden and intensify portfolio and structural measures. BMW said it would also accelerate its planned reduction of management functions. The company was due to publish its third-quarter report on Wednesday.
BMW had recently announced changes affecting parts of its middle and senior management. It also offered a voluntary severance program and set aside provisions for it. The company issued an earlier profit warning in June; at the start of the year, it had forecast an automotive EBIT margin of 4% to 6%.
BMW shares, which had already been weak, fell further after the latest announcement.
Sources: Der Spiegel.