BMW is standing firm on its ability to weather U.S. tariffs, maintaining its 2026 guidance after beating profit expectations despite ongoing headwinds.
The details: The German automaker’s optimism comes alongside mixed financial results, Reuters reported.
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BMW reported first-quarter pretax earnings of 2.3 billion euros ($2.70 billion), topping analysts’ expectations of 2.2 billion euros.
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The company’s EBIT margin in its core automotive business came in at 5.0%, down from 6.9% a year earlier but ahead of forecasts of 4.7%.
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Revenue fell 8.1% to 31 billion euros as quarterly sales declined amid weak demand in China.
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BMW still expects a slight dip in its core operating margin this year, forecasting a range of 4% to 6% versus 5.3% in 2025.
Why it matters: BMW’s ability to maintain guidance despite tariff threats and softer global demand could help provide stability for its dealer body, particularly as the brand continues outperforming several luxury rivals in the U.S. market.
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Between the lines: Even as President Donald Trump threatens to raise EU auto tariffs to 25%, BMW remains confident in its financial position as it gains traction in the U.S. and sees growing interest in the X3.
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Despite a 3.9% sales decline in Q1, BMW nearly tripled Audi’s U.S. sales volume during the quarter, per AutoBlog.
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Sales of BMW’s X3/X4 models rose 8.9% in Q1, with more than half of current X3 orders tied to the new electric iX3.
BMW CEO Oliver Zipse has suggested Trump’s tariff threat is aimed at pressuring the European Union to uphold last year’s trade agreement.
What they’re saying: “I understand this demand,” said Zipse, per Reuters, speaking of Trump’s position on the tariffs. “I am hopeful that it will be of some use.”
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