Volkswagen flags a tough year ahead as 2025 profit halves on tariffs, China competition

Core Viewpoint - Volkswagen reported a significant decline in annual operating profit and anticipates another challenging year due to U.S. tariffs and competition in China [1][2]. Financial Performance - The operating profit for 2025 was 8.9 billion euros ($10.4 billion), representing a 53% decrease from the previous year [2]. - Full-year revenue remained stable at nearly 322 billion euros, a slight decrease from 324.7 billion euros in 2024 [3]. Future Outlook - Volkswagen expects revenue growth in 2026 to be modest, projected between 0% to 3%, which is below analyst expectations [3]. - The company anticipates an operating margin of 4% to 5.5% in 2026, a decrease from 2.8% in 2025 and down from 5.9% the previous year [3].