Volkswagen Group 2025 results: steady sales, profits under pressure

2025 proved to be a resilience test for the Volkswagen Group. With trade tariffs, geopolitical tensions and ever tougher competition in the background, the automotive giant still managed to keep sales broadly steady. It delivered 8.984 million vehicles, just 0.5% fewer than in 2024.

That stability was also visible in sales revenue, which came in at €321.9 billion (–0.8% versus 2024). Profitability, however, could not escape the pressure.

The Group finished the year with €6.9 billion in net profit (–44% compared with 2024), its lowest figure since the Dieselgate scandal in 2016. The result mirrors the hit from US trade tariffs, Porsche’s difficult year, exchange-rate movements and changes in the price mix.

By division

Within the vast Volkswagen Group, the 2025 financial outcome differed sharply from one division to the next. The 10 core brands in the Group are organised into multiple divisions: Core (Volkswagen, Škoda, SEAT, CUPRA, Volkswagen Commercial Vehicles), Progressive (Audi, Bentley, Lamborghini and Ducati) and Sport Luxury (Porsche).

Core posted a 3.7% rise in revenue to €145.2 billion, driven by a 3.3% increase in vehicle sales. Its operating result was slightly below the previous year at €6.8 billion, mainly reflecting the negative effects of tariffs in the US. The operating margin stood at 4.7%. Škoda once again stood out for its consistently strong performance, while the Volkswagen brand met expectations once tariff impacts and special items were taken into account.

Progressive recorded a modest uplift in revenue to €65.5 billion (+1.5%), supported by a higher share of fully electric models. Even so, operating profit fell 13.6% to €3.4 billion, and the margin slipped to 5.1%. This drop was shaped in particular by US tariffs and the costs linked to Audi’s new strategic agreement for the coming years.

Sport Luxury-made up solely of Porsche-saw a pronounced decline in revenue to €32.185 billion (–11.7%). Operating profit virtually evaporated, landing at just €100 million, with a margin of 0.3%-this does not include Porsche Financial Services. If those results are included, the picture improves slightly.

The downturn was attributed to a market in transition, especially in China, the impact of US tariffs, and a slower pace of growth in electric mobility. The brand has begun a strategic reorientation aimed at strengthening profitability and long-term resilience.

Expectations for 2026

Looking ahead to 2026, the Volkswagen Group is keeping a cautious but confident outlook. It is forecasting revenue growth of between 0% and 3% and an operating margin between 4% and 5.5%. Liquidity in the automotive division is expected to remain robust at €32–34 billion, while investment in new technologies is set to continue at 11%–12%.

“An operating margin of 4.6% adjusted for restructuring is not sufficient in the long term. In this challenging context, we want to keep our combustion-engine vehicles technologically competitive, continue investing in innovative electric vehicles and the latest software solutions for our customers, and expand our regional presence, particularly in the US,” said Arno Antlitz, Chief Financial Officer and Chief Operating Officer of the Volkswagen Group.

Fewer jobs

Every brand in the Group is undergoing restructuring, which also includes a sizeable reduction in headcount: cuts of up to 50,000 jobs in Germany by 2030 have been announced. How this process will be carried out has not yet been detailed.

It is worth recalling that, at the end of 2024, management and the workers’ union reached an agreement that anticipated major changes to the Group’s operations in Germany, including the elimination of 35,000 jobs and reductions in production capacity.

Even so, Daniela Cavallo, Chair of the Volkswagen Group Works Council, stated that the agreement reached at the time ruled out plant closures and redundancies for operational reasons.