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BMW (ETR:BMWG) Group (ETR:BMW) presented its Q1 2025 pre-close call on April 10, revealing a 32.4% surge in battery electric vehicle (BEV) sales despite a slight overall sales decline. The presentation highlighted the company’s growing electrification strategy and regional performance disparities, with China emerging as a significant challenge area.
Quarterly Performance Highlights
BMW Group reported global retail sales of 595,000 units in Q1 2025, representing a 1.4% decrease compared to the same period in 2024. However, the company achieved significant growth in its electric vehicle segment, with BEV sales reaching 110,000 units, a 32.4% increase year-over-year. This strong performance in the electric segment aligns with the company’s strategic focus on electrification.
As shown in the following chart of BMW’s global retail sales:
The quarterly data reveals that while Q1 2025 saw a slight decline compared to Q1 2024, the company had delivered 2.45 million vehicles in the full year 2024, establishing a strong baseline for comparison.
According to the earnings report, BMW achieved Q1 2025 revenue of €33.8 billion with earnings before tax of €3.1 billion. The Group EBIT margin stood at 9.2%, while the automotive segment reported an EBIT margin of 6.9%. These financial results prompted a positive market reaction, with BMW’s stock price rising 3.15% following the announcement.
Detailed Analysis of BEV Growth
The presentation highlighted BMW’s impressive growth in the electric vehicle segment, with BEVs now representing 18.7% of total sales, while overall electrified vehicles (XEV) account for 26.9% of the company’s sales mix. This significant increase demonstrates BMW’s successful execution of its electrification strategy.
The following chart illustrates BMW’s BEV retail sales growth:
The strong Q1 2025 performance in BEV sales builds on the momentum established throughout 2024, when the company delivered 427,000 electric vehicles. CEO Oliver Zipse noted during the earnings call that "Despite the volatile conditions, the BMW Group has started 2025 in line with our high expectations," emphasizing the company’s commitment to its electrification strategy.
The presentation included consumption and emission data for several key electric models, including the BMW iX xDrive45, BMW iX2 xDrive30, and MINI ACEMAN E, all achieving zero CO2 emissions and A-class efficiency ratings, underscoring the company’s focus on sustainable mobility solutions.
Regional Performance Analysis
BMW’s regional sales data revealed significant geographical disparities, with growth in all regions except China. The company reported strong performance in Europe, the United States, and other global markets, while facing challenges in the Chinese market.
The following map provides a detailed breakdown of BMW’s regional sales performance:
In Europe, BMW delivered 242,000 units in Q1 2025, representing a 6.2% increase compared to the same period in 2024. The region also showed strong adoption of electrified vehicles, with BEVs accounting for 25.8% of sales and overall electrified vehicles (XEV) reaching 40.9% of the sales mix.
The United States market saw 4.0% growth with 95,000 units delivered, while the Rest of World category grew by 7.4% to 94,000 units. However, China experienced a significant 17.2% decline, with deliveries falling to 155,000 units from 188,000 in the previous year. This regional disparity highlights the challenges BMW faces in navigating varying market conditions across its global operations.
During the earnings call, Zipse highlighted the company’s growth in the Americas, stating, "We are growing steadily across the entire Americas region with growth of over 5%." This positive performance in the Americas region helps offset some of the challenges faced in the Chinese market.
Forward-Looking Statements
Looking ahead, BMW expects group earnings to remain at the previous year’s level, with a slight increase in automotive deliveries. The company is targeting an automotive EBIT margin of 5-7% and anticipates potential benefits from tariff reductions starting July 2025.
The company’s presentation included a disclaimer noting that the information provided is provisional and subject to adjustments, with the official Q1 2025 financial statements scheduled for release on May 7, 2025.
According to the earnings call, BMW faces several challenges including geopolitical tensions, potential trade conflicts, and supply chain disruptions that could impact operations. The company addressed its strategies for mitigating U.S. and EU tariffs, including local production capabilities.
BMW’s stock is currently trading at a P/E ratio of 6.66x, making it one of the more attractively valued automotive companies. With a dividend yield of 5.73% and a 34-year history of consistent dividend payments, the company continues to offer value to investors despite the challenging market conditions in certain regions.
As of July 9, 2025, BMW’s stock was trading at €81.58, up 2.36% for the day, reflecting continued investor confidence in the company’s strategic direction despite the mixed sales performance in Q1.
Full presentation:
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