MUNICH (dpa-AFX) - German automajor BMW Group (BMW.L, BAMXF.PK, BAMXY.PK) reported Thursday sharply lower profit in its second quarter with weak revenues. Further, the company confirmed fiscal 2025 outlook citing the sustained demand for its premium vehicles.
In addition, the company said its Board of Management has approved a third share repurchase programme with a volume of up to 2 billion euros, to be completed no later than April 30, 2027. Acquisition of the first tranche of 750 million euros began in May 2025 and will be completed no later than December 2025.
Looking ahead, for fiscal 2025, BMW Group continues to anticipate slight sales growth, with fully-electric vehicles contributing to a slightly higher share of deliveries. Group earnings before tax are still expected to be on a par with the previous year.
For the year 2025, the company still expects Automotive segment EBIT margin in the range of 5 to 7 percent, compared to 6.3 percent in fiscal 2024. In the Motorcycles Segment, a slight increase in sales and an EBIT margin within the target range of 5.5 to 7.5 percent are forecast.
In the second quarter, Group net profit plunged 31.9 percent to 1.84 billion euros from last year's 2.71 billion euros. Earnings per share were 2.85 euros, down 29.6 percent from prior year's 4.15 euros.
Pre-tax earnings or EBT fell 32.3 percent year-over-year to 2.61 billion euros, and EBIT declined 31.4 percent to 2.66 billion euros. The EBT margin was 7.7 percent, lower than prior year's 10.5 percent.
Revenues in the quarter dropped 8.2 percent to 33.93 billion euros from last year's 36.94 billion euros. The revenue decline was 5.5 percent adjusted for currency translation effects.
Automotive revenues fell 8.2 percent to 29.44 billion euros, despite 0.4 percent rise in deliveries to 621,477 units.
Meanwhile, Motorcycles deliveries fell 8 percent to 61,300 units.
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