Volkswagen: profits plummet by 32.9 per cent in the second quarter; 2026 forecasts revised downwards
The German group has reported a sharp fall in profits and confirmed stable operating margins, but forecasts that turnover in 2026 will be down by up to 3 per cent compared with previous growth forecasts
Following a difficult second quarter, the Volkswagen Group has revised its full-year revenue forecasts downwards, whilst confirming its margin forecasts. At best, turnover for 2026 will remain at the same level as the previous year, with a possible decline of up to 3 per cent (previously, turnover growth of up to 3 per cent had been forecast); the operating margin remains between 4% and 5.5%, compared with 2.8% in the previous year. Turnover rose by 2% to around 82.44 billion over the three months, despite a fall in car sales. Operating profit fell by one-tenth, standing at around 3.47 billion. The operating margin fell to 4.2% from 4.7%. Net profit after tax plummeted by 32.9 per cent to 1.54 billion. Analysts had expected lower turnover but a significantly higher profit.
“We must step up our efforts to structurally reduce our cost base and sustainably improve the quality of our profits,” said Volkswagen’s chief financial officer, Arno Antlitz. “What matters now is swift and consistent implementation.” The CFO pointed out that 2026 will be a challenging year and that the focus will need to be even more firmly on fixed costs. In an interview with Bloomberg, Antlitz said he believed the US market was still growing despite the tariffs and that European car manufacturers needed “a good solution” to the US tariffs.
