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BMW Group Demonstrates Resilient Performance With €5.7 Billion Earnings In First Half Of 2025
In the first half of 2025, BMW Group reported pre-tax earnings of €5.7 billion, showcasing resilience amid market challenges. The company anticipates continued growth driven by strong demand for electrified vehicles.
BMW Group reported a robust performance in the first half of 2025, achieving pre-tax earnings of €5.7 billion and an EBT margin of 8.5%. The company maintained stable sales volumes, delivering over 1.2 million premium vehicles. The Automotive Segment's EBIT margin was 6.2%, aligning with the annual target range of 5.0-7.0%. Free cash flow for this segment reached €2.35 billion by June.
The BMW Group's strategy focuses on innovation, global presence, and a technology-neutral approach. Oliver Zipse, Chairman of the Board of BMW AG, stated, "Our performance in the first half of 2025 once again underscores the robustness of our business model." He highlighted the upcoming debut of the NEUE KLASSE at IAA Mobility in September as a significant milestone.
Electrified vehicle sales saw an impressive increase of 18.6% during the first half of 2025. More than one in four BMW Group vehicles delivered were electrified, with Europe showing the highest growth rates for BEVs and PHEVs at 34.8%. The BMW M models also achieved record sales with over 106,000 units sold, marking a 6.5% rise.
MINI's growth was driven by its BEV models like MINI Cooper Electric and MINI Aceman Electric, contributing to a 34.3% share in deliveries worldwide. Rolls-Royce maintained strong sales with nearly 2,800 luxury cars delivered despite a slight decrease compared to last year.
The BMW Group's revenues for the first half-year totaled €67,685 million, experiencing an 8% decline due to currency translation effects and subdued demand in China. Despite these challenges, strong growth in leasing business positively impacted revenue eliminations between segments.
Research and development expenditure decreased slightly to €4,020 million while focusing on digitalisation and electrification across all model series. Administrative and sales expenses were reduced as planned.
Automotive Segment Performance
The Automotive Segment generated revenues of €58,654 million in the first half-year, down by 6.9% from last year due to currency headwinds and lower sales revenues in China. EBIT for this segment was €3,626 million with an EBIT margin of 6.2%, within the annual target range.
Tariff increases posed challenges but did not significantly impact BMW's business model due to its global competitive strength and resilience.
Financial Services Segment Dynamics
The Financial Services Segment experienced dynamic growth in new leasing business with a volume increase of 9.5%. The leasing share rose to 40% from last year's 35.5%. However, earnings before tax declined by 19.5% due to lower income from end-of-lease vehicle resales.
The credit loss ratio stood at 0.27%, slightly higher than last year's figure.
Motorcycles Segment Overview
BMW Motorrad delivered over 105,000 motorcycles and scooters by June despite a slight decrease compared to last year. The segment's EBIT margin improved to 12%, reflecting strong operational performance.
Outlook for Remainder of Year
The IMF forecasts global economic growth at 3% this year amid trade disputes and inflation concerns impacting markets like China and the USA differently. BMW expects slight sales growth with an increased share of fully electric vehicles in deliveries while maintaining its guidance for group earnings before tax comparable to last year.
The company anticipates tariff-related impacts on its Automotive Segment EBIT margin but remains confident about achieving financial goals through efficiency improvements and cost structure optimisation.
BWM continues monitoring macroeconomic developments closely while leveraging opportunities arising from potential tariff reductions or changes in customs policy globally.
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