BMW cuts margin forecast to range from -0.5% to +0.5% — Der Spiegel

German automaker BMW has lowered its profitability forecast for the automotive segment for the second time in 2026. The company expects the EBIT margin in this division to range from -0.5% to +0.5% at the end of the current financial year, Der Spiegel reports.

BMW had previously forecast an EBIT margin of between 1% and 3%. The EBIT margin shows the ratio of a company's operating profit to its revenue. The new forecast allows for losses in the automotive segment.

Structural changes

BMW said it had revised its expectations following the management board's decision to expand and strengthen measures concerning the asset portfolio and the company's structure. The manufacturer also plans to accelerate the previously announced reduction of management functions.

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The company had previously reported the restructuring of part of its middle and senior management. BMW also had a compensation payment program for employees, for which reserves were created.

Second forecast cut

In June, BMW had already issued a profit warning and lowered its forecast. At the beginning of the year, the group expected the automotive segment's EBIT margin to be between 4% and 6%.

After the new statement, BMW shares, which had already been weak, fell further. German automakers are facing competition from China, high US tariffs and lower profitability of electric vehicles. In July, BMW announced the elimination of 8,000 jobs, mainly in development and administration rather than production.