BMW makes a “second” downward revision to its full-year 2026 earnings forecast. Additional costs will be incurred to accelerate production because “the Neue Klasse is performing too well”

German premium automaker BMW Group lowered its full-year 2026 earnings forecast. Although third-quarter operations remained solid, non-operating expenses associated with expanding portfolio and organizational restructuring were cited as contributing factors. These costs were described as part of the restructuring required to capitalize on the strong launch of the next-generation EV concept, the Neue Klasse, and bring forward the transition from legacy-generation models.

## Overview of the Full-Year 2026 Earnings Forecast Revision and Changes to Financial Metrics|The comparison of the forecast before and after the revision is updated as follows|The Automotive segment EBIT margin was lowered to -0.5% to +0.5%. Excluding the measures, however, the underlying margin remains above 2.0%|Automotive segment free cash flow remains above €2.5 billion, with no change; the EV mix is expected to increase slightly from the prior-year level, CO2 emissions to decrease slightly year on year, and motorcycle deliveries to decline slightly year on year

## Background and Outlook|Given that demand for the Neue Klasse remains high, the company is introducing an accelerated production shift. While bringing forward the phaseout of legacy-generation models, it expects restructuring costs to improve profitability over the medium to long term. Non-operating expenses are increasing markedly in the short term, but the electrification mix and environmental metrics are trending positively.

## Conclusion|BMW plans to improve its long-term competitiveness by focusing on the Neue Klasse and accelerating the transition between generations. Although the forecast has been revised in the short term, strong cash-generation capacity and the acceleration of organizational reforms are expected to contribute to future performance.