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BMW Slashes 2026 Profit Outlook Amid China Slump
16 Jun
Summary
- BMW projects a significant profit decrease for 2026.
- China's market downturn and the Iran war impact outlook.
- Return on capital employed forecast lowered to 1%-5%.
German automotive giant BMW has issued a revised profit forecast for 2026, signaling a significant downturn. The company now anticipates a substantial decrease in group profit when compared to the previous year's performance.
This downward revision stems from challenging market conditions, specifically an accelerated slump observed in the Chinese market. Additionally, the geopolitical impact of the Iran war is cited as a contributing factor to the altered financial projections.
BMW has consequently adjusted its expected return on capital employed (RoCE) for 2026. The new projection places RoCE between 1% and 5%, a considerable decrease from the previously anticipated range of 6% to 10%.
