BMW's Quarterly Profit Declined by 35%

German automaker BMW published its financial results for the second quarter of 2026, showing that the company's profit before tax (EBT) declined by 35.1% to €1.70 billion. In the same period last year, this indicator stood at €2.61 billion.

The company's revenue decreased by 7.9% to €31.26 billion, while net profit fell by 34.9% to €1.20 billion.

BMW's automotive business EBIT margin contracted from 5.4% to 2.3%. The company notes that the main reasons for this are fierce price competition in China, additional US tariffs, and reduced automobile sales. Tariffs alone reduced the margin by approximately 1.25 percentage points, though part of this impact was offset by price increases realized during the quarter.

In the second quarter, BMW delivered 590,947 vehicles to consumers, which is 4.9% lower compared to the same period last year. The decline was particularly sharp in the Chinese market, where sales dropped by 30.2%. In contrast, sales in Europe increased by 7.6%, while US sales grew by 11.9%.

The electric vehicle segment maintained positive momentum — battery-powered vehicle deliveries increased by 5.2% to 116,807 units, representing almost 20% of the company's total sales.

According to BMW's statement, the business environment further deteriorated during the quarter, exacerbated by weakness in the Chinese market and ongoing conflict in the Middle East. The company also confirmed that as part of its cost reduction program, it plans to reduce several thousand employees in Germany by the end of 2027.