BMW Group's third-quarter profit stayed above 2 billion euros on interest-rate derivative gains, while its Automotive EBIT margin fell to 3.4%.
BMW Group reported profit before tax of 2,083 million euros for the third quarter of 2026, down 10.6% on a year earlier, with a Group EBT margin of 6.8%. The Automotive EBIT margin came in at 3.4%, with higher import tariffs and depreciation weighing on operating performance, and battery-electric vehicles made up 20% of Q3 deliveries.
BMW Group earned 2,083 million euros before tax in the third quarter of 2026, a fall of 10.6% on the year before. The company put its Group EBT margin for the quarter at 6.8%. The Q3 statement was published on 4 November 2026.
Two items shaped the result. Group earnings got a lift from valuation gains on interest-rate derivatives, mainly in the first and third quarters. In the Automotive segment, a settlement of legal proceedings over the Integrated Braking System also helped, even though segment EBIT fell 39.7% to 901 million euros.
Key figures
| Measure | Q3 2026 | Year to date |
|---|---|---|
| Group profit before tax | 2,083 million euros (-10.6%) | 6,128 million euros (-23.9%) |
| Group EBT margin | 6.8% | 6.6% |
| Automotive EBIT margin | 3.4% | 3.5% |
| Automotive free cash flow | -566 million euros | 724 million euros |
| Group deliveries | 551,075 (-6.3%) | 1,707,802 (-4.9%) |
Automotive margin squeezed by volumes and tariffs
Automotive revenue fell 6.5% to 26,669 million euros in the quarter. Lower sales volumes and strong competition, particularly in China, weighed on revenue, and currency effects made it worse. Cost of sales came down as manufacturing expenses fell.
BMW says operating performance took a hit of about 1.2 percentage points from depreciation on BBA assets, which comes from the purchase price allocation, and around 1.25 percentage points from higher import tariffs. Automotive free cash flow was negative at 566 million euros in the third quarter, but it totalled 724 million euros over the first nine months. The company still expects the segment's free cash flow to exceed 2.5 billion euros for the full year.
Deliveries fell 6.3% to 551,075 vehicles. Europe (up 2.6%) and the United States (up 2.5%) grew, but that only partly made up for weaker sales in China, where BMW's volumes dropped by a quarter in line with a shrinking overall market. Battery-electric vehicles accounted for 20% of third-quarter sales, or 27.4% with plug-in hybrids added. In Europe, 46.9% of deliveries were electrified, with battery-electric models at 34.7%.
Costs, finance arm and the Neue Klasse
Research and development spending fell 6.8% to 1,790 million euros in the quarter, and capital expenditure for the nine months dropped 17.1% to 3,657 million euros. BMW Financial Services posted profit before tax of 639 million euros in the third quarter, down 0.8%. Over the year to date, a provision added in the first quarter for an industry-wide UK car finance compensation scheme was a significant headwind.
BMW says demand for the Neue Klasse models has stayed strong, and it responded by adding production shifts early. That faster ramp-up gives it room to begin phasing out older vehicle and technology generations sooner, including selected models with Gen5 battery technology. The company expects the Neue Klasse, including its Gen6 technology, to lift profitability over the coming years.
The board has also widened its portfolio and structural measures, and those costs will land in the fourth quarter. The full-year guidance, cut in an earlier announcement, now puts the Automotive EBIT margin in a corridor from -0.5% to +0.5%, and includes about 2.5 percentage points of adverse effects from those measures. Chief Financial Officer Walter Mertl said the company is speeding up efficiency and structural work this year to strengthen future margins. The chairman of the board of management said the industry calls for quick decisions and fast implementation. Management roles are being cut faster than first announced.
