Volkswagen flags another tough year ahead as 2025 profit halves
Scrap metal on a barge near the Volkswagen AG factory in Wolfsburg, Germany, on Tuesday, March 10, 2026.
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of Germany volkswagen on tuesday reported There was a sharp decline in annual operating profit, marking another difficult year for the auto giant as it continues to grapple with US tariffs and competition from China.
Europe’s largest automaker reported operating profit of 8.9 billion euros ($10.4 billion) in 2025, down 53% from the previous year, citing U.S. tariffs, currency effects and a strategic shift at Porsche. Analysts had expected annual operating profit of 9.4 billion euros, according to LSEG consensus data.
Full-year revenue remained flat at around 322 billion euros, compared to 324.7 billion euros in 2024, and the company’s outlook for sales growth in 2026 is relatively modest. Volkswagen said it expects revenue to improve between 0% and 3% this year, falling short of analyst expectations.
The company also said it expects operating margin to be between 4% and 5.5% in 2026, after reaching 2.8% in 2025 from 5.9% the previous year.
Arno Antlitz, Volkswagen’s chief operating officer and chief financial officer, described 2025 as a “really challenging” year but said the company remained “well positioned” in Europe.
Speaking to CNBC’s Annette Weisbach on Tuesday, Antlitz said, “We increased our market share a little bit despite the increased competition in China. We reached a market share of more than 25%, 27% in electric vehicles, so more than in the internal combustion engine segment.” he said.
Volkswagen’s shares rose 4% in early morning trading. The stock is down more than 12% since the beginning of the year.
No major supply constraints from Iran war
The results are for European car manufacturers They are struggling to cope with a number of industry challenges, including strong competition from Chinese car brands and US President Donald Trump’s import tariffs.
The automotive industry is considered significantly vulnerable to US tariffs, especially given the high degree of globalization of supply chains and heavy reliance on manufacturing operations in North America.
Asked about the potential impact on the company of the spreading Middle East crisis and increased oil price volatility, Volkswagen’s Antlitz said: “This crisis is clearly worrying for all our partners and customers in the region and their families.”
He added: “It’s limited so far in terms of the impact on our business. We have long-term contracts in terms of oil, gas or energy, so we’re basically hedged on that side and we’re not seeing major supply constraints at the moment either.”
