Scrap steel on a barge close to the Volkswagen AG manufacturing facility in Wolfsburg, Germany, on Tuesday, March 10, 2026.
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Germany’s Volkswagen on Tuesday reported a pointy drop in annual working revenue and flagged one other robust yr forward because the auto large continues to grapple with U.S. tariffs and competitors in China.
Europe’s largest carmaker posted 2025 working revenue of 8.9 billion euros ($10.4 billion), down 53% from the yr prior, citing U.S. tariffs, foreign money results and a strategic shift at Porsche. Analysts had anticipated annual working revenue to return in at 9.4 billion euros, in keeping with LSEG consensus information.
Full-year income held regular at almost 322 billion euros, in comparison with 324.7 billion euros in 2024, and the corporate’s outlook for gross sales development is comparatively modest in 2026. Volkswagen mentioned it expects income to develop in a variety between 0% to three% this yr, falling wanting analyst expectations.
The corporate additionally mentioned it anticipates an working margin of between 4% and 5.5% in 2026, after coming in at 2.8% in 2025, down from 5.9% a yr earlier.
Arno Antlitz, chief working officer and chief monetary officer at Volkswagen, described 2025 as a “actually difficult” yr however mentioned the corporate stays “properly positioned” in Europe.
“We elevated our market share barely regardless of elevated Chinese language competitors. In electrical automobiles, we even achieved a market share of greater than 25%, 27%, so greater than within the combustion engine phase,” Antlitz advised CNBC’s Annette Weisbach on Tuesday.
Shares of Volkswagen rose 4% throughout early morning offers. The inventory is down greater than 12% year-to-date.
No main provide constraints from Iran conflict
The outcomes come as Europe’s automakers wrestle to become familiar with a collection of business challenges, together with strong competitors from Chinese language automotive manufacturers and U.S. President Donald Trump’s import tariffs.
The automotive sector is extensively thought to be acutely weak to U.S. tariffs, significantly given the excessive globalization of provide chains and the heavy reliance on manufacturing operations throughout North America.
Requested concerning the sprawling Center East disaster and the potential impression on the corporate given heightened oil value volatility, Volkswagen’s Antlitz mentioned: “This disaster is clearly regarding for all our companions and clients within the area and their households.”
He added: “By way of impact on our enterprise, to this point it’s restricted. By way of oil or gasoline or vitality, we’ve long-term contracts so we’re principally hedged on that facet and presently we additionally don’t see main provide constraints.”
