SHERIDAN, WYOMING – May 23, 2025 – Despite turbulent economic conditions and evolving market dynamics, BMW Group has posted a stable and strategically aligned financial performance for the first quarter of 2025, with a continued push toward electrification and disciplined cost management.
Strong performance with a focus on electrification
BMW Group reported earnings before tax of over €3.1 billion on revenues of €33.8 billion, yielding a robust EBT margin of 9.2%. The Automotive segment’s EBIT margin reached 6.9%, and an adjusted figure excluding depreciation from the BBA acquisition stood at 8.1%.
A key highlight was the surging demand for all-electric vehicles (BEVs). Global BEV sales rose by an impressive 32.4%, now comprising 18.7% of total group sales. Europe led this transformation, with BEV sales jumping 64.2%.
“Our commitment to electrification remains an important cornerstone of our strategy. And the demand for our all-electric vehicles remains strong,” said Walter Mertl, Member of the Board of Management of BMW AG, Finance.
Regional sales snapshot: Europe and US rise, China cools
BMW, MINI, and Rolls-Royce delivered over 586,000 vehicles worldwide, reflecting a modest 1.4% year-over-year decrease. Europe saw a 6.2% increase in retail sales, while the U.S. experienced a 4% uptick.
China faced headwinds due to model transitions and dealer challenges. “The sales development in the Chinese market in Q1 was also impacted by the model changeover of our important BMW X3 and operational challenges in certain areas of the dealer network,” Mertl explained.
Financial discipline and cost reductions
BMW Group’s strategic cost management is showing early success. R&D expenses dropped by €200 million, resulting in an R&D ratio of 5.9%. Sales and administrative costs also declined by €200 million, largely driven by lower IT expenditures.
Key consumer-facing financial highlights include:
- Automotive free cash flow of €400 million
- Segment capital expenditure decreased by €100 million year-on-year
- Capex ratio at 3.6%, with full-year expectations set below 6%
“The BMW Group delivered as expected in the first quarter with an EBIT margin at the upper end of our full-year target corridor,” Mertl confirmed. “Nominal cost reductions are already visible in our Q1 figures.”
Strategic shareholder returns and outlook
BMW’s shareholder return strategy remains robust. As of April 3, BMW completed the final tranche of a €4 billion share buyback program initiated in 2022, reducing share capital by over 7%.
At the upcoming AGM, the Board will seek approval for a new five-year authorization to repurchase up to 10% of share capital.
Looking ahead, BMW maintains a stable outlook for 2025 despite ongoing geopolitical and trade uncertainties:
- Group EBT expected to match 2024 levels
- Automotive EBIT margin forecasted between 5–7%
- Motorcycles EBIT margin anticipated at 5.5–7.5%
- Financial Services RoE projected between 13–16%
“Our clear long-term strategy, our strong brands and products and the high level of cost discipline throughout our entire organisation remain the basis for our long-term financial success,” Mertl concluded.
Learn more at https://www.bmwgroup.com