BMW cut its 2026 automotive EBIT margin forecast to a corridor of -0.5 percent to 0.5 percent, from 1 percent to 3 percent, and its automotive return on capital employed forecast to -1 percent to 1 percent, from 1 percent to 5 percent, while leaving automotive free cash flow guidance unchanged at above 2.5 billion euros. The board expanded and intensified its portfolio and structural measures, which BMW said will have a non-operating effect on automotive earnings in the fourth quarter even though operating performance stayed solid in the third quarter; the restructuring includes about 8,000 job cuts, and deliveries guidance moved to a moderate decrease from a slight decrease. To counter weak demand in China, BMW has added factory shifts to speed the production ramp of its Neue Klasse models and will phase out earlier vehicle and battery generations sooner.
BMW cuts profit forecast for second time in five months
BMW cut its 2026 automotive EBIT margin forecast to between -0.5 percent and 0.5 percent, from 1 percent to 3 percent, as restructuring costs and weak demand in China outweigh solid third quarter operations.
Why it matters: A break-even margin corridor at one of Europe's premium carmakers, cut twice in five months from an initial 4 percent to 6 percent, shows the cost of restructuring and of losing ground to cheaper Chinese rivals in China.
Data as of BMW Group's own guidance update of November 3, 2026, read in full via the live browser in this run, with Reuters' November 3 report of the same announcement used to verify the figures; Bloomberg's report of November 3, updated November 4, read in part in this run. Developing item.
Sources
- BMW Group updates guidance for the 2026 financial year - BMW Group - 2026-11-03
- BMW Speeds Up New Model Rollout After Another Profit Warning - Bloomberg - 2026-11-03