Volkswagen stated that it expects an improvement in profitability this year as the German automaker continues efforts to reduce costs in challenging operational conditions.
The company forecasts an operating margin of between 4% and 5.5% this year compared to 2.8% in 2025 and 5.9% in 2024. Analysts surveyed by Visible Alpha expect a margin of about 5.2%, which is close to the upper end of Volkswagen's forecast range. Revenue is expected to remain at last year's level or grow by up to 3%.
Volkswagen shares rose by 2.3% at 11:25 Moscow time in Germany.
Volkswagen reported revenue of €321.91 billion ($374.62 billion) in 2025, which generally aligns with the company's earlier forecasts and is slightly below the €324.66 billion recorded in 2024.
Annual operating profit sharply fell to €8.9 billion, more than halving compared to the previous year and falling short of analysts' expectations of €9.4 billion. The decline was partially due to the impact of tariffs and an expensive strategic shift at Porsche, which slowed its transition to electric vehicles last year amid weakening demand.
"We are operating in a fundamentally different environment," said CEO Oliver Blume.
Operating profit in the fourth quarter fell to €3.46 billion from €6.25 billion a year earlier, while revenue decreased by 4.7% to €83.25 billion. Analysts surveyed by FactSet expected operating profit of €4.13 billion with revenue of €85.16 billion.
Net cash flow amounted to €4.6 billion.
Jefferies analyst Philipp Usha stated that the results and forecasts for Volkswagen "largely align with January's comments before the closure, including a positive surprise in cash flow, driven by a combination of reduced capital expenditures and the release of working capital."
He also noted that the forecast for operating profit margin "is slightly wider and lower than expected at 4.0-5.5%, reflecting recent events."
Porsche, a key contributor to the group's profitability in recent years, saw its operating profit nearly disappear in 2025, plummeting by 98% to just €90 million. The company's operating margin fell to 0.3% from 14.5% the previous year.
Looking further into the future, Volkswagen stated that it intends to significantly increase profitability by the end of the decade. "This will be based on strict discipline regarding costs and investments," said CEO Oliver Blume.
The company aims for an operating margin of 8% to 10% by 2030.
#WorldNews2026 , #AvtoNews , #MarketTurbulence
A group for those who like to stay informed about changes in the news agenda of finance, cryptocurrency, commodities, and technological changes in the markets.
🤫