BMW: The rebuilding process

研报英文原文证据摘录

BMW: The rebuilding process

impacts of tariffs and non-cash purchase price allocation adjustments on BMW-Brilliance in China

(resulting from the revaluation of the business after BMW acquired the majority interest in February 2022) of 1.2pts, the

underlying Automotive margin was closer to 4.8% in 2Q26, or 3.5% if tariff costs are included.

• BEV sales: In 2Q26, BMW brand delivered around 85,429 BEVs globally. This represented a sequential improvement of

35% vs 1Q26, taking BMW brand BEV share from 12.7% in 1Q26 to 16.8% in 2Q26 (15.9% in 2Q25). Europe remains

the main growth driver for all-electric sales. For BMW Group, almost one in three vehicles sold in Europe was a BEV. BMW

believes this performance supports its expectation that it will once again meet its CO2 emissions targets in the EU in 2026.

• Restructuring program: BMW reconfirmed its 1-3% Auto EBIT margin target for 2026. A burden of 1.25pts of margin is

embedded within this in relation to the restructuring program that has been agreed with the Works Council.

• Auto FCF: Working capital was a €1.3bn headwind, driven by inventory build-up during the quarter, as production exceeded

sales volumes. The company is targeting to bring inventories back to prior year levels, by the end of 2026. Depreciation

exceeded capex for a tailwind to FCF of €0.6bn. This is expected to continue throughout 2026. BMW reiterated its FY26

guidance of FCF above €2.5bn.

• Share buyback: BMW completed the second tranche of its third share buyback program on 26 June, two months ahead

of schedule. The final tranche started on 1 July and is expected to be completed by 30 November, five months earlier

than originally scheduled. As a reminder, the third share buyback program in total has a value of €2bn. In 2026 alone, this