German auto giant BMW cut its full-year 2026 EBIT forecast. This was its second revision in 5 months, as it proceeds with job cuts due to higher costs associated with business restructuring and weak demand in China. The outlook for vehicle deliveries was revised to a decline in the high-5% range to 9.9%.
As reported by Reuters on the 3rd, German automaker BMW lowered its full-year 2026 EBIT forecast from its previous expectation of an increase, indicating that EBIT is now expected to range from a 0.5% decline to a 0.5% increase year on year. This is the second downward revision in 5 months.
The company’s announcement of a restructuring plan to accelerate job cuts amid weak demand in China is seen as a factor behind the increase in costs. Specifically, it cited the implementation of business restructuring centered on cutting around 8,000 jobs.
BMW forecasts a 5–9.9% decline in full-year 2026 vehicle deliveries and is scheduled to announce its 2026 third-quarter results on the 4th. It maintained its automotive free cash flow outlook at more than €2.5 billion.