BMW Braces for Q2 Results as New-Model Fireworks Can't Mask Core Profit Squeeze
Published on 06/25/2026 at 14:07 | Redaktion boerse-global.de
BMW is hustling to show off its future lineup — a 2027 7-series with 112.5 kWh batteries, a dual-engine M3 strategy, and a vehicle-to-home solar partnership — even as the numbers due June 30 are expected to confirm that the present is getting much worse. The stock, which has shed roughly 36% since January, now hovers near a 52-week low of €58.80, with the latest trade around €61.50. Technical readings underscore the rout: the relative strength index has touched 24.1 on some days, and stood at 26.4 in a separate recent snapshot, both deep in oversold territory.
The core problem remains China. Mid-June’s profit warning slashed the full-year 2026 outlook, driven by a steeper-than-expected decline in combustion-engine sales in the world’s largest auto market. European and U.S. demand has held up better, but not enough to offset the Chinese shortfall. The EBIT margin in the automotive segment has been cut from a previously targeted 4%–6% to just 1%–3%, while the return on capital employed (RoCE) falls to 1%–5% from an earlier 6%–10%. Management now anticipates a “significant” drop in second-quarter profit versus last year, a slide that partly reflects months already in the books and partly the expectation that conditions will not improve in the second half.
BMW is responding with deeper cost cuts. Ongoing structural and efficiency measures will incur one-time charges in the second half of 2026, with savings expected to flow through in later years. The dividend payout ratio remains pegged at 30%–40% of net income, and the share buyback program continues uninterrupted. Bloomberg has described the profit warning as fresh evidence that the German auto industry’s business model is under structural attack, with Chinese competitors fundamentally reshaping the competitive landscape.
Should investors sell immediately? Or is it worth buying BMW?
Against that grim backdrop, the Neue Klasse platform is offering a glimmer of hope. The BMW iX3 has racked up more than 50,000 orders since its European launch, exceeding internal expectations. Every second X3 ordered in Europe is now fully electric, and the continent’s first-quarter 2026 order intake for battery-electric vehicles climbed roughly 40% year-over-year. Over the next two years, BMW plans to field more than 40 new or heavily refreshed models.
The 7-series, due in 2027, will feature next-generation cells with 112.5 kWh capacity, targeting a range of more than 560 km and charging speeds up to 250 kW. It will also integrate the North American Charging Standard (NACS) connector and be positioned as a software-defined vehicle with Panoramic iDrive and a BMW Passenger Screen. Meanwhile, the M3 will come in two distinct flavors: a reworked combustion version with the S58 engine and a standalone electric variant. An M3 Touring is also planned under the Neue Klasse umbrella.
BMW is also pushing sustainability and energy integration. At the Intersolar Europe trade fair, the automaker and Solarwatt unveiled a vehicle-to-home offering that will let Neue Klasse owners use their high-voltage battery as a buffer for excess rooftop solar power. The service is slated to launch in Germany, Austria and the Netherlands by the end of 2026. Separately, the new X5 has slashed its development-phase CO? footprint by 40%, using 50% electric steel and high levels of recycled aluminium.
A notable management shift adds a human-interest angle: Massimiliano Di Silvestre, CEO of BMW Group Italia, will leave on July 1, 2026, to become Ferrari’s Chief Marketing & Commercial Officer, replacing Enrico Galliera. While the departure of a seasoned executive to a direct luxury rival is unusual, BMW insists the strategic direction remains unchanged. All eyes now turn to June 30, when the second-quarter results will provide the first hard data after the profit warning. The full half-year report follows on July 30, 2026.
Ad
BMW Stock: New Analysis - 25 June
Fresh BMW information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
