BMW's profits and revenue dip as leadership shift and EV future loom
BMW is facing financial challenges as it prepares for a major leadership change and new product launches. The company reported a 6.7% drop in pre-tax profit for 2025, alongside a 6.3% decline in revenue. Despite these setbacks, plans for its next-generation electric vehicles remain on track. The automaker's pre-tax profit fell to €10.2 billion in 2025, down 6.7% from the previous year. Revenue also shrank by 6.3%, adding to investor concerns. Since January, shares have dropped 18.4%, now trading at €78.28.
A leadership transition is set for May 14, 2026, with Milan Nedeljkovic replacing Oliver Zipse as CEO. The change comes ahead of the company's first-quarter financial report, due on May 6, 2026. Analyst Eunice Lee from Bernstein has maintained an 'Outperform' rating, pointing to potential growth despite recent struggles.
Production of the all-electric BMW i3 will start in Munich in August 2026. The vehicle is part of the Neue Klasse lineup, which promises a WLTP range of up to 900 kilometres and 800-volt fast-charging technology. The launch of this series in late 2026 will be crucial for the company's future profitability.
However, the automotive division's EBIT margin is expected to shrink by 1.25 percentage points in 2026. Higher tariffs are likely to blame for the decline. BMW is pushing forward with its electric vehicle strategy while navigating financial headwinds. The Neue Klasse models, including the i3, will test the company's ability to recover profitability. Investors and analysts will be watching closely as production begins and new leadership takes over.
