The Volkswagen Group reported a sharp decline in profits for the fiscal year, with after-tax earnings falling 44.3% year-on-year as operating performance weakened while earnings remained broadly stable.
For the full year, after-tax earnings were €6.90bn ($8.04bn).
Revenues reached EUR 321.91 billion, representing a 0.8% decrease compared to FY2024.
The operating result fell most significantly, down 53.5% to €8.86bn.
The decrease in operating results was attributed to US tariffs, costs associated with adjustments to Porsche’s product strategy, as well as currency movements and price and mix effects.
Positive contribution spending programs helped alleviate these pressures.
Excluding both special items such as restructuring costs, Porsche-related costs and the impact of tariffs, operating profit would have been €17.7bn.
The group expects to sell 9.022 million vehicles through 2025, largely unchanged from the 9.037 million sold last year.
Battery electric vehicles (BEVs) remain an important demand driver.
Orders for BEVs increased by around 55%, representing approximately 22% of the total order bank.
Sales increased by 5% in Europe and 10% in South America, while volumes decreased by 12% in North America and 6% in China amid tough market conditions.
Performance also softened in the last quarter of the year.
In the fourth quarter of fiscal year 2025, sales revenue totaled 83.24 billion euros, a decrease of 4.7% compared to the same period last year.
Operating profit for the quarter fell 44.6% to €3.46bn.
Quarterly revenue after tax came in at €3.49bn, down 1.7% year-on-year.
Headcount decreased slightly, with the company employing approximately 662,900 people as of 31 December 2025, representing a 2.4% decrease.
The board plans to propose a dividend of €5.26 per preferred share and €5.20 per ordinary share for the 2025 financial year, a 17% decrease compared to last year.
Volkswagen Group CEO Oliver Blume said: “In 2025, we put the new power of the Volkswagen Group on the road and set our company firmly on track with increasing global speed. We have seen strong market demand for our innovative, exciting products that have won many prestigious awards.”
Looking ahead, the company expects sales revenue to increase between 0% and 3% in 2026 compared to 2025.
The group said its outlook reflects potentially challenging macroeconomic conditions, global trade uncertainty, and geopolitical pressures.
It cited increasing competition, volatility in commodity, energy and foreign exchange markets, and regulatory requirements related to emissions.
