BMW cuts 2026 profit forecast on China, Iran war impact
Key takeaways
- The company said its automotive segment EBIT margin is now expected to land in a corridor of 1% to 3%, down from prior guidance of 4% to 6%.
- BMW said the downturn in China's passenger car market intensified in the second quarter, with non-electric vehicles hit particularly hard.
- Beyond the pressure on its operating business, BMW said it would accelerate and intensify ongoing cost reduction efforts through additional structural and efficiency measures.
BMW cuts 2026 profit forecast on China, Iran war impact Quartz · picture alliance / Getty Images Colleen Cabili Wed, June 17, 2026 at 8:09 PM GMT+7 2 min read BMW.DE BMW cut its full-year 2026 profit outlook on Tuesday, blaming an accelerating decline in the Chinese automotive market and the widening economic fallout from the conflict in the Middle East.
The company said its automotive segment EBIT margin is now expected to land in a corridor of 1% to 3%, down from prior guidance of 4% to 6%. Group profit before tax is now projected to fall at a significant rate compared with the previous year, a steeper deterioration than the moderate decline BMW had previously forecast. The company also revised its delivery outlook to a slight decrease versus last year, having previously guided for volumes at roughly the same level.
BMW said the downturn in China's passenger car market intensified in the second quarter, with non-electric vehicles hit particularly hard. Sales gains recorded in Europe and the United States fell well short of making up for the losses BMW suffered across China and the rest of the Asia-Pacific region, the company said. Higher energy costs tied to the Middle East conflict are adding pressure to BMW's cost base while also undermining the confidence of buyers globally, the automaker said.