BERLIN – The German luxury automaker BMW announced Wednesday that its first-quarter profits dropped significantly, falling 25% compared to the same period last year as the company grapples with trade tensions and a challenging Chinese market.
Despite the substantial decline, BMW managed to surpass Wall Street expectations with pre-tax profits reaching 2.3 billion euros (approximately $2.70 billion) for the quarter. Financial analysts had predicted earnings of 2.2 billion euros according to company-compiled forecasts. However, overall company revenue decreased 8.1% to 31.0 billion euros.
The Munich-based carmaker joins competitors Mercedes and Audi in reporting challenging first-quarter results for 2026, as automotive manufacturers face mounting pressure from potential tariff increases and intense competition from Chinese rivals.
BMW, along with other global automakers, has implemented cost-cutting measures to counter the financial strain from trade barriers and elevated raw material expenses in what industry experts describe as a weakened worldwide automotive marketplace.
The company’s core automotive division recorded an EBIT margin of 5.0% during the first quarter, representing a decrease from the 6.9% margin achieved in the previous year. However, this figure still exceeded analyst projections of 4.7%.
