Scrap steel on a barge close to the Volkswagen AG manufacturing facility in Wolfsburg, Germany, on Tuesday, March 10, 2026.
Bloomberg | Bloomberg | Getty Photos
Germany’s Volkswagen on Tuesday reported a pointy drop in annual working revenue and flagged one other powerful 12 months forward because the auto big continues to grapple with U.S. tariffs and competitors in China.
Europe’s largest carmaker posted 2025 working revenue of 8.9 billion euros ($10.4 billion), down 53% from the 12 months prior, citing U.S. tariffs, forex results and a strategic shift at Porsche. Analysts had anticipated annual working revenue to come back in at 9.4 billion euros, based on LSEG consensus knowledge.
Full-year income held regular at practically 322 billion euros, in comparison with 324.7 billion euros in 2024, and the corporate’s outlook for gross sales development is comparatively modest in 2026. Volkswagen stated it expects income to develop in a spread between 0% to three% this 12 months, falling in need of analyst expectations.
The corporate additionally stated it anticipates an working margin of between 4% and 5.5% in 2026, after coming in at 2.8% in 2025, down from 5.9% a 12 months earlier.
Arno Antlitz, chief working officer and chief monetary officer at Volkswagen, described 2025 as a “actually difficult” 12 months however stated the corporate stays “nicely positioned” in Europe.
“We elevated our market share barely regardless of elevated Chinese language competitors. In electrical automobiles, we even achieved a market share of greater than 25%, 27%, so greater than within the combustion engine phase,” Antlitz instructed CNBC’s Annette Weisbach on Tuesday.
Shares of Volkswagen rose 4% throughout early morning offers. The inventory is down greater than 12% year-to-date.
No main provide constraints from Iran battle
The outcomes come as Europe’s automakers wrestle to familiarize yourself with a sequence of trade challenges, together with strong competitors from Chinese language automotive manufacturers and U.S. President Donald Trump’s import tariffs.
The automotive sector is extensively considered acutely susceptible to U.S. tariffs, significantly given the excessive globalization of provide chains and the heavy reliance on manufacturing operations throughout North America.
Requested concerning the sprawling Center East disaster and the potential affect on the corporate given heightened oil worth volatility, Volkswagen’s Antlitz stated: “This disaster is clearly regarding for all our companions and prospects within the area and their households.”
He added: “When it comes to impact on our enterprise, thus far it’s restricted. When it comes to oil or gasoline or power, we have now long-term contracts so we’re mainly hedged on that facet and presently we additionally don’t see main provide constraints.”
