The Volkswagen Group reported moderate revenue growth for the first nine months of 2025, despite significant external headwinds, including U.S. import tariffs and lower profit margins from electric vehicle ramp-ups. The company’s sales revenue rose slightly to €238.7 billion, up 1% from the previous year, while operating profit dropped sharply by 58% to €5.4 billion, resulting in an operating margin of 2.3%.
Volkswagen’s CFO and COO Arno Antlitz acknowledged the mixed performance, noting that while restructuring and sales of both combustion and electric models showed progress, the financial outcome was dampened by increased tariffs and strategic adjustments at Porsche.
Excluding these charges, the Group operating margin is 5.4 percent — a respectable figure in the current economic environment,” Antlitz said. “However, increased trading tariffs burden us by up to €5 billion on a full-year basis. That’s why we must rigorously implement performance programs and efficiency measures while leveraging synergies across the Group.
Performance Highlights (January–September 2025):
- Sales Revenue: €238.7 billion (up 1% YoY)
- Operating Result: €5.4 billion (down from €12.8 billion in 2024)
- Net Cash Flow (Automotive Division): €1.8 billion (down 47%)
- Vehicle Sales: 6.6 million units (up 1.2%)
- BEV Order Growth: +64% in Western Europe, accounting for 22% of total orders
Volkswagen reported growth in South America (+13%), Western Europe (+4%), and Central and Eastern Europe (+11%), offsetting declines in China (–2%) and North America (–11%).
Brand Group Performance:
- Core Brand Group (VW, Škoda, SEAT/CUPRA): Operating margin stable at 4.4%; Škoda remained highly profitable at 8%.
- Progressive Brand Group (Audi, Bentley, Lamborghini, Ducati): Profit fell 26% to €1.6 billion, hurt by U.S. tariffs and CO₂ costs.
- Sport Luxury (Porsche): Reported €0.2 billion operating loss, hit by lower sales in China and product realignment expenses.
- TRATON (Commercial Vehicles): Profit dropped 46% to €1.7 billion due to lower volumes and currency effects.
- CARIAD (Software Division): Narrowed loss to €1.5 billion, aided by a 47% rise in license revenues.
- Group Mobility: Operating profit up 37% to €2.9 billion, led by growth in Europe.
Outlook for Fiscal 2025:
Volkswagen expects full-year sales revenue to remain flat year-on-year, with an operating return on sales between 2.0% and 3.0%. The company anticipates continued tariff pressures and restructuring costs but aims to sustain a net liquidity of around €30 billion in its automotive division.
Despite challenges, the Group reaffirmed its commitment to long-term transformation and efficiency under its performance programs and strategic focus on electrification and software development.
