BMW has revised its 2026 outlook for the second time this year, lowering its forecast for the closely watched EBIT margin in its automotive segment to between -0.5% and 0.5%. The range means the business could record an operating loss. BMW shares dropped more than 3% in after-hours trading following the announcement.
The automaker said it will write down parts of its previous vehicle and technology generations as it accelerates the launch of its next generation of electric vehicles. The company also cited costs associated with its ongoing restructuring programme.
BMW plans to speed up the workforce reductions announced over the summer and complete them sooner than originally planned. This is expected to require additional provisions for severance payments. The company had also cited workforce-reduction provisions in its first profit warning of the year; the new charges could amount to around €1 billion to €1.5 billion, according to the report.
Sources: Handelsblatt.