Volkswagen’s earnings collapsed last year. The company announced on Tuesday that its 2025 net profit fell to €6.9 billion, a 44 percent decline from €12.4 billion the previous year.
Operating profit also slid sharply, dropping from €19.1 billion to €8.9 billion. The chief executive attributed the drop to U.S. tariffs, costs linked to adjusting Porsche’s product strategy, currency effects, and “price/mix effects”. Volkswagen said that savings from cost‑reduction programmes might have offset some of these pressures.
Looking ahead, the group forecasts revenue growth for 2026 to be between 0 percent and +3 percent compared with the prior year. Operating margin is expected to range from 4.0 percent to 5.5 percent. However, the company warned of numerous challenges stemming from the economic environment, uncertainties around international trade restrictions, geopolitical tensions, increasing competition, volatile commodity, energy and currency markets, and stringent emissions regulations.