BMW Q4 Results Down, Cuts Dividend; Sees Flat Earnings, Higher Volume In FY25

(RTTNews) - German luxury automaker BMW Group reported Friday lower profit and revenues in its fourth quarter hit mainly by weak Automotive deliveries, despite growth in Rolls-Royce. The company also trimmed its dividend, and issued fiscal 2025 outlook, expecting stable Group earnings before taxes, but slight growth in sales volume amid continuing subdued demand in the Chinese market.

At the Annual General Meeting on May 14, BMW will request a further authorization to buy back additional shares amounting to 10 percent of the existing share capital within the next five years.

The company said, "Inflation continues to stabilize and further moderate interest rate cuts in many countries suggest that demand will rise slightly in 2025. With the full availability of new models — the company expects slight growth in sales overall. The share of all-electric vehicles in deliveries will increase slightly compared to 2024. ..At the same time, the continued challenging situation in China, tariff increases and ongoing support measures for the supply chain are expected to provide headwinds."

For the year 2025, the company expects Automotive segment EBIT margin in the range of 5.0 to 7.0 percent, compared to 6.3 percent in fiscal 2024. In the Motorcycles Segment, a slight increase in sales and an EBIT margin within the target range of 5.5 to 7.5 percent are forecast.

The guidance takes into account the effects of the tariff increases that came into force up to March 12.

BMW added that it expects its investments in future projects to decrease, starting in 2025, from planned peak in 2024.

Further, subject to the approval of the Annual General Meeting, the Board of Management and Supervisory Board will propose a dividend of 4.30 euros per share of common stock, down from last year's 6.00 euros. The Board will also propose dividend of 4.32 euros per share of preferred stock, down from 6.02 euros a year ago.

In its fourth quarter, net profit fell 40.9 percent to 1.55 billion euros from last year's 2.61 billion euros. Earnings per share of common stock were 2.41 euros, down 36.1 percent from prior year's 3.77 euros.

Profit before financial result or EBIT plunged 57.3 percent to 1.88 billion euros from 4.41 billion euros a year ago. EBT margin declined 2.8 percentage points to 5.8 percent from 8.6 percent a year earlier.

Automotive Segment EBIT margin was 5.5 percent, lower than last year's 8.5 percent.

Revenues for the quarter were 36.42 billion euros, 15.2 percent lower than 42.97 billion euros last year.

Automotive revenues fell 8.7 percent year-over-year to 34.05 billion euros, while revenues from Motorcycles grew 2.2 percent to 657 million and Financial Services went up 4.8 percent to 9.96 billion euros.

Automotive deliveries dropped 2.9 percent from last year to 696,697 units, while Motorcycles deliveries grew 5.9 percent to 46,949 units.

BMW brand deliveries fell 2.3 percent year-over-year to 616,714 units, and MINI sales volume declined 7.5 percent to 78,241 units. Sales volume of Rolls-Royce, however, climbed 17.9 percent to 1,742 units.

Battery-electric vehicles or BEVs remained the BMW Group's main growth driver.

On the XETRA in Germany, BMW shares were trading at 82.92 euros, up 0.73 percent.

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