BMW Group has revised its 2026 automotive EBIT margin forecast to a range of -0.5% to +0.5%, down from its previous guidance of 1% to 3%, citing accelerated structural realignment measures.
The automaker said its underlying automotive EBIT margin, excluding restructuring effects, is still expected to exceed 2% for the full year. However, portfolio adjustments and structural measures planned for the fourth quarter are projected to create a 2.5-percentage-point non-operational headwind.
Higher import tariffs, together with depreciation and amortization related to BMW Brilliance Automotive (BBA) assets arising from purchase price allocation, are also weighing on the automotive business. BMW said the portfolio adjustments were driven by demand for its Neue Klasse vehicle generation.
The company added that early production shifts enabled a faster ramp-up, leading to the earlier-than-planned phase-out of older vehicle and technology generations, including certain models based on Gen5 battery technology. Its Gen6 battery technology is used in models such as the BMW iX3, BMW i3, BMW i7, BMW iX4, and BMW iX5.
At the same time, management workforce reductions are progressing more quickly than originally expected, while the company is expanding the use of agentic artificial intelligence across procurement planning and customer offerings.
During the third quarter of 2026, BMW Group revenue declined 5.8% year-on-year to €30.45 billion ($34.23 billion), or 7.7% on a currency-adjusted basis. Profit before tax fell 10.6% to €2.08 billion, while net profit decreased 14.7% to €1.45 billion.
Revenue from the automotive segment decreased 6.5% to €26.67 billion, while segment EBIT dropped 39.7% to €901 million. Group vehicle deliveries also declined 6.3% to 551,075 units during the quarter. For the first nine months of 2026, deliveries totalled 1,707,802 units, down 4.9% year on year.
A 25% decline in deliveries in China, reflecting the broader market downturn, offset growth of 2.6% in Europe and 2.5% in the United States. Fully electric vehicles accounted for 20% of quarterly group deliveries, increasing to 27.4% when plug-in hybrids were included.
For the January–September 2026 period, BMW Group revenue fell 7.3% to €92.71 billion. EBIT declined 35.2% to €5.22 billion, while net profit decreased 24.4% to €4.32 billion.
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