BMW Q1 2025 Earnings: EV Sales Surge Amid Revenue Dip and Profit Decline

BMW Group (ETR:BMWG) reported a steady performance in Q1 2025, highlighting strong electric vehicle (EV) momentum despite facing a challenging global auto market. The company delivered 586,117 premium vehicles, down 1.4% year-over-year, but 26.9% of those were electrified models. Notably, fully-electric vehicle (BEV) sales jumped 32.4%, underscoring BMW’s continued push toward electrification.

Pre-tax earnings fell 25.2% to €3.1 billion from €4.16 billion a year earlier, with the EBT margin declining to 9.2% from 11.4%. However, the automotive EBIT margin stood firm at 6.9%, the upper end of BMW’s target range of 5-7%, demonstrating operational resilience.

BMW's BEV sales surged in Europe, climbing 64.2%, with MINI's electric lineup playing a key role—22,798 fully-electric MINIs were sold, representing 35.3% of MINI’s total deliveries. Cumulatively, BMW has now sold 1.5 million fully-electric vehicles and 3 million electrified vehicles globally since 2013.

Quarterly revenue declined 7.8% to €33.76 billion, primarily due to weaker demand in China. Capital expenditure totaled €1.2 billion, reflecting prudent investment. Free cash flow in the automotive segment dropped significantly to €413 million from €1.28 billion in Q1 2024, though BMW reaffirmed its full-year free cash flow target of over €5 billion.

The Financial Services segment saw pre-tax profit fall 11% to €650 million, largely due to reduced resale income from end-of-lease vehicles amid a softer used car market.

BMW confirmed its 2025 outlook, forecasting slight growth in global auto demand, increased BEV share, an EBIT margin between 5-7%, and return on capital employed between 9-13%. Finance chief Walter Mertl emphasized stable financials and disciplined cost control in a challenging environment.