Volkswagen AG announced earnings for its first quarter on Wednesday. The company had a difficult start to the fiscal year as it was impacted from the introduction of US tariffs. The automotive behemoth announced an operating profit that crashed nearly 37% compared to last year, coming in at €2.9 billion. In contrast, Volkswagen Group anticipates that sales may exceed last year’s figures by up to 5%, despite the headwinds faced in the current economic environment.
Over that same time period in 2025, Volkswagen AG will have sold an estimated 2.1 million vehicles. This reflects a modest 1% increase over the same time in 2024. Sales revenue for the company slightly increased by 3%, totaling €78 billion. In commenting on the mixed bag of results, Volkswagen Group’s Chief Financial Officer Arno Antlitz sounded a hopeful note, saying,
“As expected, the Volkswagen Group experienced a mixed start to the fiscal year. Our cars are very well received. Order intake in Western Europe increased significantly and our order books are filling up fast.”
Our incoming order intake is at record levels, proving just how high demand is for Volkswagen vehicles. This increase is particularly impressive in Western Europe, where the firm’s BEV delivery market share increased from 9% to 19%. Volkswagen AG’s global share of BEV deliveries increased from 6% to 10% year-on-year, a substantial rise. This jump is indicative of the fact that consumers are increasingly choosing electric vehicles.
Volkswagen AG can take comfort in some positive numbers from its electric vehicles. It continues to put stress on its bottom line because of their marketplace success. Its operating return on sales is forecast to be in the 5.5%–6.5% range. Antlitz noted that this outcome is a clear indication that there’s still work to be done.
“At the same time, this market success of our electric cars puts pressure on our result. An operating margin of around four percent clearly shows that there is still a considerable amount of work ahead of us.” – Arno Antlitz
Volkswagen Group expects its automotive net cash flow for the year to be between €2 billion and €5 billion. This projection creates an exciting backdrop for the company’s upcoming financial prospects. The company’s net liquidity in its automotive segment is expected to be €34 to €37 billion. Volkswagen Group has already guided for a lower operating return on sales. Further, they are predicting automotive net cash flow and net liquidity to approach the bottom of their ranges.
“Based on the developments in the period up to April 28, 2025, the Volkswagen Group expects the operating return on sales, automotive net cash flow and net liquidity to trend towards the lower end of the respective ranges. It remains the group’s goal to continue its robust financing and liquidity policy.” – Volkswagen Group
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