Bulletin: An Ambitious Profitability Rebound Is Necessary In 2027 To Uphold Our Rating On BMW AG

This report does not constitute a rating action. FRANKFURT (S&P Global Ratings) June 17, 2026--BMW AG lowered its EBIT margin guidance for the automotive segment on June 16 to 1%-3% for 2026 from 4%-6%. This will likely put the S&P Global Ratings-adjusted EBITDA margin for 2026 in the range of 6%-7%. It is uncertain whether BMW will be able to return to a double-digit range adjusted EBITDA margin in 2027 that we deem commensurate with the current rating. This increases the likelihood of a downgrade if we see dwindling prospects of a sizable improvement in profitability next year, which we expect to assess after the company's capital markets day at the end of September. BMW cited a combination of challenging

...June 17, 2026 This report does not constitute a rating action. FRANKFURT (S&P Global Ratings) June 17, 2026--BMW AG lowered its EBIT margin guidance for the automotive segment on June 16 to 1%-3% for 2026 from 4%-6%. This will likely put the S&P Global Ratings-adjusted EBITDA margin for 2026 in the range of 6%-7%. It is uncertain whether BMW will be able to return to a double-digit range adjusted EBITDA margin in 2027 that we deem commensurate with the current rating. This increases the likelihood of a downgrade if we see dwindling prospects of a sizable improvement in profitability next year, which we expect to assess after the company's capital markets day at the end of September. BMW cited a combination of challenging market circumstances in China that are spilling over into the wider the Asia-Pacific region as the main reasons for the revision. This is in stark contrast with its year-to-date sales overperformance of a 12% decline compared to a decline of about 17% for the overall light...

Bulletin