Volkswagen AG has released its second-quarter financial results, showing a slight increase in revenue but a decline in profit, prompting the company to lower its full-year sales forecast for 2026.
The financial report reveals that second-quarter revenue reached 82.44 billion euros, a 2% year-on-year increase, slightly exceeding the market expectation of 81.72 billion euros. However, operating profit fell to 3.47 billion euros, a 9.5% decrease compared to the same period last year and below the market forecast of 4.07 billion euros. Net profit after tax for the quarter was 1.538 billion euros, a significant 32.9% drop year-on-year. The profit decline was primarily driven by weaker production and sales volumes, costs associated with the discontinuation of the ID.4 electric model in the U.S. market, and a shift in product mix toward lower-margin vehicle models.
Due to a notable downturn in several global automotive markets during the first half of the year and intensifying competition, Volkswagen AG has adjusted its full-year performance guidance. The company now expects its 2026 sales revenue to decline by 0% to 3% compared to the previous year, a revision from its earlier forecast of 0% to 3% growth. The full-year vehicle delivery volume is also projected to fall by 3% to 7%, whereas the previous forecast was for flat performance. The company continues to maintain its target for a full-year operating profit margin between 4.0% and 5.5%.
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