SHERIDAN, WYOMING – April 18, 2025 - BMW Group reinforces strategy with solid 2024 results and a future-focused investment approach
Introduction: Navigating Challenges with Strategic Clarity
BMW meets guidance targets despite market headwinds
The BMW Group showcased its ability to deliver on long-term strategies while maintaining operational performance in 2024. Despite a complex market environment—marked by delivery stops, subdued demand in China, and peak investment phases—the company achieved its revised financial guidance and now turns confidently toward the production rollout of the NEUE KLASSE.
Background: Building a Foundation for the Future
Strategic investments peak to prepare for over 40 new models
In 2024, the BMW Group reached peak levels in research and development (R&D) and capital expenditures. "As anticipated, we reached peak levels of R&D and capital expenditure in 2024, particularly to prepare for models of the NEUE KLASSE," stated Walter Mertl, Member of the Board of Management of BMW AG, Finance. Starting this year, these investments will taper as the company transitions into production mode.
Main Content: Key Financials and Segment Highlights
Stable results across segments and growth in electrified vehicle sales
While Group revenues totaled €142.4 billion, a slight decrease from 2023 due to volume declines and Chinese market competition, performance across BMW’s core segments remained stable:
- Automotive Segment: Delivered 2.45 million vehicles and €125 billion in revenue. EBIT stood at €7.89 billion with a 6.3% margin, aligned with guidance.
- All-electric growth: BEV deliveries surged 13.5% to over 426,000 units, comprising 17.4% of total sales.
- Financial Services: Nearly 1.7 million new contracts and a return on equity of 15.1%.
- Free Cash Flow: Reached €4.9 billion, supported by inventory reduction and disciplined cost management.
"Worldwide BMW Group sales performance in Q4 saw sequential improvement over Q3," Mertl confirmed, with notable rebounds in both Europe and the U.S.
Benefits: Strategic Flexibility and Shareholder Returns
Robust cash flow and value for stakeholders
BMW’s financial resilience enabled continued shareholder returns. A proposed dividend of €4.30 per common share and €4.32 per preferred share results in a €2.7 billion payout. Furthermore, the company’s ongoing €2 billion share buyback will complete ahead of schedule, reducing share capital by over 7%.
"We have also increasingly used the range of dividend payout corridor. And we increased the share of Automotive free cash flow distributed to shareholders from the previous years’ levels to almost 100% this year," Mertl highlighted.
Outlook: Positioned for a Competitive 2025
Cost discipline, innovation, and sustainable growth in focus
For 2025, BMW anticipates a modest rise in deliveries, stable revenue per vehicle, and Automotive EBIT margins between 5% and 7%, accounting for new tariff impacts. R&D and capital expenditures are expected to decline from 2024’s peak, reflecting a strategic pivot from investment to execution.
"To that end, we are constantly enhancing our operational business to ensure we achieve our strategic priorities and optimize our returns," said Mertl, emphasizing cost reductions despite inflation.
Conclusion: Accelerating Toward the Future with NEUE KLASSE
Innovation on the horizon as BMW enters a new era
With NEUE KLASSE models set to enter production, the BMW Group is poised to translate its investments into tangible consumer offerings. "With the technological boost from the NEUE KLASSE across the entire portfolio, we look forward to seeing the benefits from our investments start hitting the road later this year," Mertl concluded.
For more information, visit the BMW Group Official Website.