BMW Group has lowered its 2026 Automotive segment EBIT margin forecast, citing additional portfolio and structural measures in the fourth quarter, including the earlier phase-out of selected models equipped with its fifth-generation (Gen5) battery technology.
The company now expects an Automotive EBIT margin of between -0.5% and +0.5%, compared with its previous forecast of 1% to 3%, BMW said on November 3. Excluding the effects of structural and portfolio measures, the margin is expected to exceed 2.0%.
BMW linked the revised outlook to the faster production ramp-up of its Neue Klasse vehicle generation, which is increasing demand for newer models and creating opportunities to discontinue selected vehicles and technologies from previous generations earlier than planned.
Neue Klasse Expansion Accelerates Gen5 Battery Phase-Out
BMW said its operating financial performance remained solid in the third quarter. However, sustained high demand for Neue Klasse models prompted the company to add production shifts earlier than initially planned.
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The faster ramp-up is allowing BMW to accelerate the transition from previous vehicle and technology generations. This includes bringing forward the phase-out of selected models using Gen5 battery technology as the company prepares to expand its next-generation vehicle portfolio.
The Neue Klasse incorporates new technology clusters, including sixth-generation (Gen6) battery technology, which BMW expects to contribute to improved profitability in the coming years.
The company is also accelerating its organizational and process restructuring. It plans to implement reductions in management functions faster than previously announced, building on its ongoing workforce restructuring program.
BMW Revises Several 2026 Financial and Delivery Targets
Alongside the lower Automotive EBIT margin forecast, BMW revised several other targets for the 2026 financial year.
The Automotive segment’s return on capital employed (RoCE) is now expected to range from -1% to +1%, down from the previous forecast of 1% to 5%. Automotive free cash flow guidance remains unchanged at more than €2.5 billion.
BMW also expects the share of all-electric vehicles in Automobile segment deliveries to increase slightly compared with 2025, replacing its earlier forecast that the share would remain at the previous year’s level.
The company now anticipates a moderate decrease in Automotive deliveries year on year, compared with its previous expectation of a slight decline.
Other Guidance Adjustments
BMW also revised its emissions and motorcycle delivery expectations for 2026.
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Scope 3 CO2-equivalent emissions from the supply chain and vehicle use phase in the Automobile segment are now expected to decrease slightly compared with 2025. The previous forecast had anticipated emissions remaining at the prior-year level.
For the Motorcycles segment, BMW now expects deliveries to decline slightly year on year, replacing its earlier forecast of stable deliveries.