Volkswagen Group net profit down 35.73% in first half
Volkswagen Group reported a net profit of €1.65 billion for the first half of fiscal year 2026, a decrease of 35.73% year-on-year, while total revenue remained largely stable.
Wolfsburg – Volkswagen Group announced its financial results for the first half of fiscal year 2026 (January-June), revealing a significant drop in net profit. The company's net profit for the period stood at €1.65 billion, a 35.73% decrease compared to the same period last year.
Total revenue saw a slight decline of 0.17%, reaching €15.81 billion. The decrease in profit was attributed to several factors, including approximately €500 million in one-off costs in the United States related to the discontinuation of the ID.4 model, and unfavorable changes in product mix.
Despite the profit reduction, operating cash flow increased by 77.01% to €5.87 billion. The automotive division's net cash flow turned positive, reaching €3.16 billion, a notable improvement from a negative €1.4 billion in the prior year. These cash flow improvements provide liquidity for the group's ongoing transformation.
Globally, vehicle deliveries decreased by 6.3% to 4.13 million units. While deliveries grew in Europe and South America, they declined significantly in North America and Asia, with the Chinese market being a key drag on sales, showing a 26% drop for the Volkswagen brand. The company has consequently lowered its full-year delivery and revenue guidance due to market conditions, particularly in China.