Audi trims profit outlook again as tariffs and EV shift squeeze margins

Core Viewpoint - Audi Group has revised its full-year profitability target downward for the second time this year, primarily due to pressures from US import tariffs and the costs associated with the transition to electric vehicles [1][6]. Financial Performance - For the first nine months of 2025, Audi Group reported revenue of €48.38 billion, reflecting a year-on-year increase of 4.6%, driven by a richer model mix and a higher share of electric vehicles [2]. - Operating profit decreased to €1.55 billion from €2.08 billion in the previous year, resulting in an operating margin of 3.2%, down from 4.5% in 2024 [2]. - Profit after tax for the first nine months was €2.06 billion, compared to €2.42 billion in the same period last year [4]. Market Dynamics - Deliveries across the Audi Group, which includes brands like Bentley and Lamborghini, fell by 4.8% to 1,191,141 vehicles in the first three quarters of 2025, with Audi-branded deliveries also declining by 4.8% to 1,175,765 vehicles [4]. - Demand for battery-electric vehicles (BEVs) was a positive aspect, with over 163,000 BEVs sold during the period [5]. Strategic Direction - Audi Group's CEO emphasized the importance of clarity in guiding the company forward, focusing on essential areas for action and strategic direction [3]. - The company is implementing stringent cost control measures in response to the challenging economic environment and intensified competition [5][6].