Volkswagen to Announce First-Half 2026 Financial Results; Operating Profit Declines by Double Digits

*This content was translated by AI.

Volkswagen Group announced its first-half 2026 financial results. Revenue for the first half of 2026 amounted to €158.12 billion, a slight 0.2% decrease compared to the same period last year, maintaining performance at the previous year's level. Operating profit for the first half was €5.931 billion, down 11.6% from the same period last year, with an operating profit margin of 3.8%.The decline in operating profit was primarily driven by costs associated with the suspension of ID.4 production in the United States (approximately €500 million) and a worsening product mix effect.

Net cash flow from the automotive sector reached €3.166 billion, an improvement compared to -€1.4 billion in the same period last year. However, this improvement was not due to strong factors such as increased new car sales or expansion into new markets, but rather resulted from reduced tax payments, decreased outflows of working capital cash, and lower investment expenditures. Global automotive sales for the first half fell below 4 million units, totaling 3.997 million vehicles, an 8.4% decrease compared to the same period last year. Regionally, sales in China plummeted by 31.6%, while Latin America, Western Europe, and Eastern Europe showed growth trends. The number of orders for pure electric vehicles in Europe increased by more than 50% compared to the end of 2025, and urban-type electric vehicle families secured over 70,000 orders.

Oliver Blume, CEO of Volkswagen Group, stated that structural restructuring efforts implemented over the past three years are yielding results, and he expects the company to overcome challenging business conditions in the second half of the year and achieve solid performance. In contrast, Arno Antlitz, CFO and COO, diagnosed that an operating profit margin of 3.8% remains at a very low level, emphasizing that immediate measures are essential for structural cost reduction through improvements in vehicle cost structures, reductions in indirect expenses, and enhanced factory efficiency.

Along with this financial results announcement, Volkswagen Group revised its full-year 2026 outlook. The forecast for annual revenue growth rate was adjusted from the previous range of 0% to +3% to -3% to 0%, while the operating profit margin is expected to remain between 4.0% and 5.5%. Annual net cash flow is projected to be between €3 billion and €6 billion, and net liquidity in the automotive sector is anticipated to reach between €32 billion and €34 billion. This outlook was calculated based on the maintenance of current international trade tariffs and the existing structure.

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*This content was translated by AI.