Volkswagen Q2 Profit Down On Weak Production, Volume; Backs FY26 Margin View, Cuts Revenue Forecast

German automotive major Volkswagen AG (VLKAF.PK,VOW.DE) reported Friday lower profit in its second quarter with weak production and sales volume. Further, the firm maintained fiscal 2026 margin view, but trimmed revenue growth forecast. The automotive manufacturer expects improved margins in the second half of the year.

Earnings after tax reached 1.538 billion euros in the second quarter, representing a 32.9 percent decline from 2.291 billion euros in prior period.

Earnings before tax totaled 2.538 billion euros, down 23.4 percent from 3.314 billion euros a year ago.

The operating result fell 9.5 percent year-over-year to 3.469 billion euros, and operating return on sales dropped to 4.2 percent from 4.7 percent in the previous period.

Sales revenue reached 82.444 billion euros, up 2.0 percent from 80.806 billion euros in the prior year. However, vehicle delivery volumes declined significantly.

Customer deliveries totaled 2.077 million units, down 8.6 percent, while vehicle sales reached 2.043 million units, representing a 9.7 percent decrease. Production volumes fell 13.4 percent to 2.014 million units from to 2.325 million units in the previous year.

Looking ahead, Volkswagen Group maintaind its operating return on sales target between 4.0 and 5.5 percent for 2026

Meanwhile, the firm adjusted its 2026 sales revenue outlook to a range of negative 3 to 0 percent compared with the previous year, revised from the earlier guidance of 0 to positive 3 percent.

In the Automotive Division specifically, the company continues to target an investment ratio of between 11 and 12 percent in 2026.

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