BMW Group has reported a solid financial performance for the first quarter of 2026, maintaining profitability and confirming its full-year outlook despite global economic uncertainty, rising tariffs, and intense competition in key automotive markets.
The German premium automaker recorded earnings before tax (EBT) of €2.35 billion during the quarter, with a Group EBT margin of 7.6%, broadly matching its full-year 2025 performance. The company also achieved positive growth in free cash flow within its automotive segment, which rose 88.1% year-on-year to €777 million.
Oliver Zipse said the company’s consistent strategy, operational efficiency, and flexible product approach helped it navigate difficult market conditions.
BMW’s automotive segment achieved an EBIT margin of 5.0%, remaining within the company’s full-year guidance range of 4–6%. However, the automaker said additional tariffs reduced the margin by approximately 1.25 percentage points during the quarter.
The company highlighted strong customer demand in Europe, where BMW recorded its highest-ever quarterly order intake. Orders for battery-electric vehicles increased by more than 60% compared to the previous year, driven largely by demand for the BMW iX3, which secured over 50,000 orders by the end of March.
BMW Group delivered 565,780 vehicles globally in the first quarter, a slight decline of 3.5% year-on-year. While BMW brand deliveries fell 4.6%, the MINI brand posted its fifth consecutive quarter of growth, with global sales rising 6.0%. Battery-electric vehicles accounted for 35.1% of MINI sales during the period.
The automaker also continued reducing operational costs and investments as part of its efficiency strategy. Research and development spending declined 11.5%, while capital expenditure fell nearly 39% compared to the same period last year.
BMW said its Neue Klasse platform remains central to its long-term EV strategy. The company plans to integrate the new design language and technology architecture across future BMW models regardless of drivetrain type.
Chief Financial Officer Walter Mertl said the company remains focused on balancing profitability with investments in innovation and electrification.
Despite challenges in China, where the automotive market contracted sharply, BMW reaffirmed its full-year 2026 guidance and expects vehicle deliveries to remain on par with the previous year. The company also anticipates fully electric vehicles will maintain a similar share of total sales as in 2025.
BMW Group said it remains committed to disciplined cost management, technological flexibility, and sustainable growth as it continues expanding its global electric mobility portfolio.
