BMW Cuts 2026 Profit Outlook, Speeds Up Restructuring and Phase-Out of Older Models as Neue Klasse Ramps Up

BMW cut its full-year automotive profit outlook Wednesday as it accelerated restructuring and moved to phase out some older models sooner, saying strong demand for its Neue Klasse electric vehicles is allowing a faster transition.

The company now expects its automotive operating profit margin for 2026 to fall between minus 0.5% and plus 0.5%, down from a previous forecast of 1% to 3%. Before portfolio and restructuring measures, BMW still expects the margin to exceed 2%.

BMW said expanded measures will create a non-operational earnings hit in the fourth quarter. It now expects those measures to weigh on the full-year automotive margin by around 2.5 percentage points, compared with an earlier estimate of about 1.25 points.

The guidance cut came alongside third-quarter group profit before tax of 2.083 billion euros, down 10.6% from a year earlier, according to the company. Its automotive operating margin was 3.4% in the quarter.

BMW said additional production shifts and a faster Neue Klasse ramp-up create room to end production of previous vehicle and technology generations earlier, including selected models using its Gen5 battery technology. It also plans to reduce management functions faster than previously announced.

The company maintained its forecast for automotive free cash flow of more than 2.5 billion euros this year. BMW reported growth in third-quarter deliveries in the United States and Europe, but said those gains only partly offset continued weakness in China.