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Investing.com -- BMW Group (ETR:BMWG) on Wednesday reported a stable first-quarter performance in 2025, with profitability aligning with expectations despite a competitive market environment, driven by strong growth in fully-electric vehicle sales and a solid automotive EBIT margin of 6.9%.
The German carmaker delivered 586,117 premium vehicles to customers, a 1.4% decrease from the previous year.
More than a quarter of these deliveries, or 26.9%, were electrified vehicles. Fully-electric vehicle deliveries rose sharply by 32.4%, reflecting BMW’s ongoing focus on electrification.
Pre-tax earnings for the quarter totaled €3.1 billion, down 25.2% from €4.16 billion a year earlier. The EBT margin stood at 9.2%, compared to 11.4% in 2024.
However, the automotive EBIT margin of 6.9% fell at the upper end of the target range of 5-7%, signaling resilience in a highly competitive global market.
BMW’s focus on electric vehicles is reflected in growing BEV sales, particularly in Europe, where BEV deliveries grew by 64.2%.
MINI’s fully-electric models contributed significantly to the increase, with 22,798 units sold, accounting for 35.3% of its total deliveries.
The company also reached major milestones, reporting 1.5 million fully-electric vehicles sold since 2013 and 3 million electrified vehicles overall.
Revenues for the first quarter totaled €33.76 billion, a 7.8% decline from the previous year, mainly due to lower sales in China.
Capital expenditures amounted to €1.2 billion, reflecting a disciplined approach to investments.
Free cash flow for the automotive segment stood at €413 million, a significant decline from €1.28 billion in the first quarter of 2024.
However, BMW remains on track to meet its full-year target of more than €5 billion in free cash flow.
In the Financial Services Segment, pre-tax earnings fell 11% to €650 million from €730 million in 2024, primarily due to lower income from the resale of end-of-lease vehicles, which has been impacted by softer used car market conditions.
BMW confirmed its full-year guidance, expecting slight growth in automotive demand with a growing share of fully-electric vehicles.
The company forecasts an automotive EBIT margin of 5-7% and a return on capital employed of 9-13%, with similar growth in its Financial Services segment.
"Stable financial performance and effective cost management characterised the first quarter despite the challenging environment," said Walter Mertl, BMW’s board member responsible for finance in a statement.