From Morningstar: 2025-05-01 05:42:00

Volkswagen reported an improving demand environment in Europe but fell short of its operating margin guidance for the first quarter of 2025. Despite strong electric vehicle sales, operating margins were diluted compared to internal combustion engines. Revenue rose 3%, but tariffs and CO2 regulation penalties may impact future outlook. Volkswagen’s EV sales grew by 59% in the first quarter, with a 64% increase in Western Europe. The operating margin was 3.7%, reflecting a negative powertrain mix effect. A provision of EUR 600m was raised for European CO2 regulation penalties. The fair value estimate remains at EUR 172, factoring in potential effects of US import tariffs. Revenue and operating margin forecasts for 2025 are below guidance due to lower US sales volumes and competitive pressure in Europe.



Read more at Morningstar: Volkswagen Earnings: Resilient First Quarter,…