The Bavarian automaker delivered solid financials despite economic headwinds. With a 7.6% EBT margin and strong EV sales growth in Europe, BMW is holding course with its multi-energy strategy.
Mixed financial performance
BMW Group reported Q1 2026 pre-tax earnings (EBT) of €2.348 billion, down 24.6% from 2025. The results reflect global automotive market challenges, particularly in China where sales dropped 10%. Still, the overall EBT margin held steady at 7.6%, close to 2025’s full-year figure (7.7%).
EV sales surge in Europe
In BMW’s key European market, orders for fully electric vehicles jumped over 60%. The iX3 SUV proved particularly popular with over 50,000 orders since launch. “Our multi-energy approach is paying off,” said BMW CEO Oliver Zipse. EVs now account for 25.3% of group sales in Europe.
Mini and motorcycles gain traction
The Mini brand continued growing with global sales up 6%, including 35.1% EVs. BMW Motorrad saw its EBIT margin rise to 11.4%. The only weak spot was Rolls-Royce, which recorded an 8% delivery decline.
Tight cost controls
Facing economic pressures, BMW cut R&D spending by 11.5% and capital expenditures by 38.9%. “We’re maintaining financial discipline while accelerating Neue Klasse deployment,” said CFO Walter Mertl. The Automotive segment’s free cash flow nearly doubled to €777 million.
Cautious 2026 outlook
BMW anticipates a volatile year, with tariffs expected to negatively impact margins by 1.25 percentage points. The group projects stable deliveries and maintains its targets: 4-6% automotive EBIT margin and 6-10% return on capital employed.
Key takeaways
- EBT margin stable at 7.6% despite market challenges
- European EV orders surge (+60%)
- Mini continues growth (+6% with 35.1% EVs)
- Strict cost control with reduced R&D spending
- Prudent 2026 outlook amid uncertainty
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