Volkswagen Reports Mixed Q1 2025 Financial Results

Volkswagen AG has released its preliminary financial results for the first quarter of 2025, revealing a mixed performance marked by revenue growth but challenged by various operational headwinds. The German automotive giant continues to navigate through regulatory challenges and restructuring efforts while maintaining its full-year outlook.

Q1 2025 Key Figures

The Group reported several key financial indicators for the first quarter:

• Sales revenue increased by approximately 3% to €78 billion (Q1 2024: €75.5 billion)
• Operating result decreased to €2.8 billion (Q1 2024: €4.6 billion)
• Operating return on sales declined to 3.6% (Q1 2024: 6.0%)
• Net liquidity in the Automotive Division stood at approximately €33 billion

Impact Factors

The quarter’s operating result was significantly affected by special effects totaling around €1.1 billion, including:

• €600 million in provisions related to CO2 regulation in Europe
• €200 million for restructuring measures at CARIAD
• €300 million combined from adjustments to diesel issue provisions and valuation of vehicles in transit due to new U.S. import duties

2025 Outlook Maintained

Despite the challenging first quarter, Volkswagen AG has maintained its outlook for the 2025 financial year:

• Sales revenue expected to exceed the previous year by up to 5%
• Group operating return on sales projected between 5.5% and 6.5%
• Automotive Division’s net cash flow anticipated in the range of €2 to €5 billion
• Net liquidity in the Automotive Division expected between €34 and €37 billion

However, the company noted that potential full-year effects from increased import tariffs, particularly in the United States, are not included in the current forecast as their impact cannot be conclusively assessed at present.

Market Response

The preliminary result for Q1 2025 deviated significantly from the average market expectation of around €4 billion or approximately 5% operating return on sales. This variance highlights the ongoing challenges faced by traditional automakers in adapting to stricter environmental regulations and the need for technological transformation.

Looking Forward

While the first quarter results reflect various challenges, Volkswagen’s maintained outlook for 2025 suggests confidence in its ability to navigate through current headwinds. The company’s continued investment in restructuring and adaptation to regulatory requirements, particularly in the areas of CO2 emissions and electric vehicle development, indicates a long-term strategic focus despite short-term financial impacts.

The full report on the interim financial statements as of March 31, 2025, will be published on April 30, 2025, providing more detailed insights into the company’s financial performance and strategic initiatives.