BMW 2Q26 briefing call: In-line with lowered expectations

Research evidence excerpt

BMW 2Q26 briefing call: In-line with lowered expectations

Stephen Reitman +44 20 7762 5535 stephen.reitman@bernsteinsg.com 10 July 2026

USA 2Q26 deliveries grew by 3.9% vs 2Q25, outperforming the total market.

2Q26 Auto EBIT will be significantly below last year’s figure, with the margin being within the 1-3% updated FY26 company

guidance range. Raw materials, FX and D&A from capex made in previous years were significant headwinds in 2Q26, and are

expected to persist throughout the year. Operating costs and tariffs will have a positive yoy effect, and there will also be an

IEEPA refund in the low triple digit million euro range. The company gave dealer support compensation to Chinese dealers also

in the low triple digit million euro range, with no plans for any such compensation to be given in H2.

Auto FCF should see a negative effect from working capital in 1Q26, in line with typical seasonality. Repayment by US customs

of tariff overpayments made in 2025 were still expected in 2026 but had not been made so far.

Share buybacks will be completed ahead of schedule. Out of the €2bn current share buyback plan, €750m in a first tranche

had already been completed, a second tranche of €625m was successfully completed on 26 June, 2 months ahead of schedule,

and the third and final tranche of €625m started on 1 July, and will be finalized no later than 30 November. The buyback plan

was originally supposed to completed by the end of April. At the end of the second tranche which was completed on 26 June

(17.6m shares bought back in Tranches One and Two), BMW still had authorisation to buy up to 44m shares - this had been

granted at the AGM in 2025 and lasts until 2030. The third tranche to be completed at or before the end of November 2026