STOCKS | BMW Cuts Earnings Guidance Again and Accelerates Restructuring

BMW has cut its full-year earnings guidance for a second time and is speeding up its restructuring plan. According to Sina Finance, BMW expects its full-year automotive EBIT margin to range from -0.5% to 0.5%, compared with guidance of 1% to 3% in June, and expects vehicle deliveries this year to edge down from 2025. Excluding restructuring costs, the company said the automotive EBIT margin is still expected to exceed 2%. The company attributed the guidance revision to a non-operating loss to be recognized in its fourth-quarter results and said it would expand product and structural reforms. Demand for its Neue Klasse models is strong, prompting additional production shifts at factories and an earlier phaseout of older models and technology platforms. Restructuring is also expected to proceed faster than previously planned. Under CEO Milan Nedeljković, BMW has pledged to reduce its workforce and use artificial intelligence to improve efficiency. In September, it announced a 20% reduction in departmental and management positions. The company had also agreed with labor representatives to cut thousands of jobs. Mercedes-Benz, Audi and Porsche are also pursuing restructuring plans. BMW reported third-quarter net profit of 1.46 billion euros, down from 1.67 billion euros a year earlier. Automotive EBIT fell 40% to 901 million euros, while the segment’s margin narrowed to 3.4% from 5.2%; EBIT beat analysts’ consensus estimate of 794 million euros. Group EBIT dropped 30% to 1.59 billion euros, below the 1.71 billion euro consensus. Revenue declined to 30.45 billion euros from 32.31 billion euros, but exceeded analysts’ estimate of 29.85 billion euros. Lower vehicle shipments, weighed down by the China market, contributed to the revenue decline.