BMW Group has lowered its full-year 2026 guidance across key financial metrics, pointing to a deteriorating Chinese car market and the economic fallout from the Middle East conflict.
The German automaker now expects its automotive segment earnings before interest and taxes (EBIT) margin to come in at 1-3%, compared with prior guidance of 4-6%
Return on capital employed (ROCE) for the same segment has been revised to 1-5%, against an earlier outlook of 6-10%. Group profit before tax is now projected to decline significantly year-on-year, a steeper deterioration than the moderate decrease previously anticipated. Automotive segment deliveries are forecast to record a slight decrease versus the prior year, having previously been guided at the prior year’s level.
The company said conditions in the Chinese passenger car market worsened in the second quarter, particularly for non-electric vehicles, intensifying competitive pressure across China and the broader Asia-Pacific region. Sales gains in Europe and the US were not sufficient to compensate for the shortfall. Elevated energy prices linked to the Middle East conflict have added to cost pressures, while the associated uncertainty has weighed on consumer sentiment globally.