Q2 2026 Bayerische Motoren Werke AG Earnings Call (Analysts and Investors Q&A Session) Transcript
Key Points
- Bayerische Motoren Werke AG (BAMXF) confirmed its strategic EBIT margin target of 8% to 10% remains intact, with intensified restructuring efforts to achieve it.
- The company's joint venture in China remained profitable in Q2 2026, contributing positively to group profit despite volume declines.
- Bayerische Motoren Werke AG (BAMXF) is implementing a four-pillar restructuring program focused on sales, organization, purchasing, and product development to reduce costs and improve efficiency.
- The company sees strong product momentum with the Neue Klasse, particularly the iX3 launching in China at the end of Q4 2026, which is expected to boost future performance.
- Bayerische Motoren Werke AG (BAMXF) has achieved significant cost reductions in its German plants, with a 25% reduction in cost per unit over the last five years, demonstrating ongoing efficiency improvements.
- Bayerische Motoren Werke AG (BAMXF) faces ongoing headwinds from foreign exchange and commodity prices, with commodity impacts expected to be more pronounced in the second half of 2026.
- The company's restructuring program will incur a significant charge of up to 1.25% of auto sales in 2026, with most of the impact expected in the second half of the year.
- Residual values for vehicles are less positive than the previous year, with regional variations, including pressure in the UK market due to BEV mandates.
- Bayerische Motoren Werke AG (BAMXF) experienced a surprise volume decline in China, and its new plant there has not yet been ramped up to full capacity.
- The company's guidance for 2026 automotive EBIT margin is a low 1% to 3%, reflecting the impact of restructuring costs and challenging market conditions.
Thank you for joining us for the Q2 2026 Investor and Analyst Q&A session, following the speeches this morning. My name is Stefan Richmann, and I'm Senior Vice President, Group Treasury and Investor Relations. With me are our CEO, Milan Nedeljkovic as well as our CFO, Walter Mertl, and we're happy to take your questions. (Operator Instructions)
Questions & Answers
(Operator Instructions)
Patrick Hummel, UBS.
It's Patrick from UBS. I would like to start with one -- more strategic one for Milan, please. You're starting the CEO job with a big restructuring task. I guess they're nice ways to begin, but nonetheless, what needs to be done needs to be done.
I'm curious, can you elaborate a little bit on the other key priorities, key issues you've identified in the last couple of months since you took over and maybe the ones that matter the most in
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