BMW expects profits to decline further this year, with delivery volumes remaining stagnant.

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BMWYY> BMW said on Thursday that due to trade barriers putting pressure on its core automotive business, the group expects a slight decline in pre-tax profit this year, with deliveries remaining flat.

The German luxury automaker stated that the adverse effects of rising tariffs will further reduce its automotive EBIT margin by about 1.25 percentage points by 2026, to between 4% and 6%, compared to 5.3% in 2025.

The company’s pre-tax profit for 2025 decreased by 6.7% to €10.2 billion ($11.78 billion), and is expected to decline further by 5% to 9.9% in 2026.

BMW expects global vehicle deliveries in 2026 to remain flat compared to 2025, after experiencing a significant decline in sales in its main market, China, in 2025.

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