BRUSSELS (dpa-AFX) - Volkswagen AG (VOW.BE, VLKAF.PK,VKW.L,VOW.DE) lowered its outlook for fiscal 2026, citing a goodwill impairment related to Porsche AG, a challenging market environment, particularly in China, and additional restructuring expenses.
VOW.DE closed Friday's regular trading at EUR 76.15 down EUR 6.90 or 8.31%.
The automaker now expects group sales revenue of around 315 billion euros in 2026, roughly in line with the midpoint of its previous forecast range of a 3% decline to flat growth from 2025 revenue of 321.9 billion euros.
Volkswagen also reduced its operating return on sales forecast to up to 1%, down from its earlier guidance of 4.0% to 5.5%. The company reported an operating return on sales of 2.8% in 2025.
The revised outlook reflects special items totaling about 10 billion euros that are expected to weigh on operating profit during 2026, including 0.9 billion euros already recorded in the first half of the year. Excluding these special effects, Volkswagen said its operating return on sales would be about 4% for the year.
Volkswagen said operating earnings are being pressured by a further deterioration in market conditions, especially in China, and a faster-than-expected shift in consumer demand toward battery-electric vehicles. The company expects these trends to weigh particularly on the Audi and Volkswagen Passenger Cars brands.
A major factor behind the forecast revision is a non-cash impairment of approximately 6 billion euros related to goodwill allocated to the Porsche business segment. The charge follows updated long-term planning by Porsche AG and revised assumptions used by Volkswagen in assessing the unit's enterprise value. The impairment is expected to reduce the group's operating profit in the third quarter.
In addition, Volkswagen anticipates further restructuring costs tied to expanded early-retirement programs and the planned sale of Volkswagen Osnabrück GmbH under the 'Future of Volkswagen' agreement reached in late 2024. The company also expects non-cash asset impairments at fully consolidated operations in China due to developments in the local automotive market.
Combined, these restructuring and China-related effects are expected to reduce earnings by around €2 billion in the second half of 2026. Volkswagen said most of the additional special items will be recognized in the third quarter.
The company's management and supervisory boards will decide on a dividend proposal for fiscal 2026 at the beginning of 2027, with the payout scheduled for approval at the Annual General Meeting in June 2027.
Volkswagen plans to publish its interim financial statements for the period ended September 30, 2026, on October 29, 2026.
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