Volkswagen lowers FY25 revenue view to ‘in line’ with FY24 results

The Volkswagen (VWAGY) Group expects sales revenue to be in line with the previous year’s figure, previously saw increase of up to 5 percent. The Group’s operating return on sales is expected to range between 4.0 and 5.0 percent, previously guided 5.5 to 6.5 percent. In the Automotive Division, the Volkswagen Group continues to expect an investment ratio between 12 and 13 percent in 2025. Automotive net cash flow for 2025 is expected to be between EUR 1 and EUR 3B, previously: EUR 2 to EUR 5B. This includes cash outflows for investments for the future as well as for restructuring measures. Net liquidity in the Automotive Division in 2025 is expected to be between EUR 31 and EUR 33B, previously: EUR 34 to EUR 37B. The Group continues to pursue its objective of maintaining a solid financing and liquidity policy. At the lower end of the forecast ranges for operating result, net cash flow and net liquidity, it is assumed that in particular the current US import tariffs of 27.5% will continue to apply in the second half of 2025; at the upper end, it is assumed that these tariffs will be reduced to 10%. There is high uncertainty about further developments with regard to the tariffs, their impact and any reciprocal effects. Challenges will arise in particular from an environment of political uncertainty, expanding trade restrictions and geopolitical tensions, the increasing intensity of competition, volatile commodity, energy and foreign exchange markets, and emissions-related requirements that have been more stringent since the beginning of the year.