Volkswagen Commentary on Cost-cutting in Focus

Dow Jones07-23

Volkswagen is scheduled to report second-quarter results on Friday. Here is what you need to know:

REVENUE FORECAST: The German automaker is expected to post revenue of 81.16 billion euros ($92.62 billion), according to a FactSet analyst poll, up from 80.81 billion euros.

OPERATING PROFIT FORECAST: Operating profit is expected to rise to 4.02 billion euros from 3.83 billion euros, according to FactSet.

Shares are down 18% in the last 12 months at 74.85 euros.

WHAT TO WATCH:

--Volkswagen's second-quarter report is unlikely to contain any surprises, with earnings probably weighed by the company's decision to end its autonomous driving partnership with Bosch, which could result in a low-triple-digit million euro impact, RBC Capital Markets analyst Tom Narayan said.

--The automaker said on an analyst call ahead of the report that the EBIT margin will land within the 4%-5.5% full-year guidance range, which in these market conditions looks like a solid performance, supported by 10% quarter-on-quarter sales growth outside of China, Citi said.

--The company recently outlined an update of its strategic plan that was already underway, aimed at improving the overall competitiveness of the group. "We...look forward to the upcoming management discussions during the second quarter results to further understand any potential measures on the European manufacturing footprint," J.P. Morgan said.

--Restructuring charges related to workforce reduction are still under negotiation, with associated cash outflows expected over the next three to four years, J.P. Morgan added.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 23, 2026 07:19 ET (11:19 GMT)

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Volkswagen Commentary on Cost-cutting in Focus

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