Audi expects its operating margin to reach 6% to 8% this year, up from 5.1% in 2025, driven by its performance enhancement program. The German automaker, part of the Volkswagen Group, forecasts revenue between 63 billion and 68 billion euros, compared to 65.5 billion euros last year.
The Audi Group, which includes the Audi, Bentley, Lamborghini, and Ducati brands, has faced financial pressures from U.S. tariffs, intense competition in China, and restructuring costs. These challenges led the company to lower its performance expectations previously.
"Pressure on margins and efficiency remains significant," stated Chief Financial Officer Jürgen Rittersberger. "It is crucial to seize all operational and financial opportunities to make Audi more efficient, competitive, and profitable."
In response, Audi announced plans last year to cut up to 7,500 jobs over several years while improving productivity, speed, and flexibility at its German plants. The company aims to achieve annual cost savings exceeding 1 billion euros in the medium term. The program is progressing well, with approximately two-thirds of the planned 6,000 job reductions by 2027 already implemented or agreed upon. An additional 1,500 positions are expected to be cut by 2029 through retirement schemes.
As part of its growth strategy, Audi has refreshed its product lineup over the past two years, launching 20 new models, more than half of which are fully electric. This year, the company will continue its product offensive, highlighting the new flagship SUV Audi Q9 and the compact electric model Audi A2 e-tron. Updated versions of the Audi Q7, Audi Q4 e-tron, and high-performance Audi RS 5 will also be released.
In China and the U.S., Audi is strengthening its market position with targeted strategies. This includes the recent launch of next-generation combustion-engine models in the U.S. and China-specific vehicles designed and produced locally. Audi confirmed it will continue its product strategy in China in 2026, focusing on models like the Audi A6L e-tron and AUDI E7X. The E7X will be the second mass-produced vehicle under its China-exclusive brand, AUDI.
However, Rittersberger cautioned that performance in China during the first two months of this year fell significantly below expectations. In the U.S., Audi aims to increase market share with the new Audi Q7 and the U.S.-specific Audi Q9, along with three new Q3 variants set to launch this year.
The group's operating profit for 2025 was 3.37 billion euros, down from 3.9 billion euros in 2024. Net profit after tax rose 11% to 4.62 billion euros. Tariffs impacted operating profit by 1.2 billion euros, while provisions for CO₂ regulations, restructuring expenses, and delays in electric vehicle platform development also weighed on earnings. Rittersberger noted that the burden from U.S. tariffs this year is expected to be similar to 2025 levels.
CEO Gernot Döllner mentioned that Audi currently has no production capacity in the U.S. and plans to decide later this year on potential investment in a U.S. plant within the Volkswagen Group framework. Net cash flow increased by 11% to 3.42 billion euros, with expectations for 2026 ranging between 3 billion and 4 billion euros.
Global deliveries for the Audi brand declined 2.9% to 1.62 million vehicles in 2025, mainly due to a 5% drop in China and a 12% decrease in North America. Fully electric vehicle sales, however, grew 36% to a record high of over 223,000 units, driven by strong demand for the A6 e-tron and Q6 e-tron.
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