Audi Lowers 2025 Profit Forecast Amid US Tariffs and Restructuring Costs

Audi has reduced its 2025 earnings forecast to an operating profit margin of 5-7%, citing the impact of US tariffs and restructuring costs. The company's stock has been under pressure due to a decline in luxury car sales in China and the US, and a delay in its model lineup renewal. Audi plans to decide on a US production site by the end of the year.

German automaker Audi has revised its 2025 earnings forecast, citing the impact of U.S. tariffs and restructuring costs. The company's stock has faced pressure due to declining luxury car sales in China and the U.S., as well as delays in its model lineup renewal. Audi plans to decide on a U.S. production site by the end of the year [1].

Audi's Chief Financial Officer, Juergen Rittersberger, noted that the company's financial performance has been affected by intense competitive pressure, increased U.S. import tariffs, and expenses related to its restructuring measures. The company's full-year revenue is now expected to be between €65 billion and €70 billion, down from the previous forecast of €67.5 billion to €72.5 billion [1].

The operating margin is projected to be between 5% and 7%, compared to the earlier estimate of 7% to 9%, and net cash flow is expected to be between €2.5 billion and €3.5 billion, down from €3 billion to €4 billion [1]. Audi reported a first-half profit after tax of €1.35 billion, down from €2.15 billion in the same period last year, reflecting restructuring measures and cost pressures related to the U.S. tariff situation [1].

Deliveries of Audi-branded cars fell 5.9% to 783,531 vehicles in the first half of the year, led by a 10% decline in China. The company is focusing on expanding its electric vehicle portfolio and strengthening its presence in China with market-specific models and local partners [1].

Audi's stock has been under pressure, with shares rising more than 2% on Monday despite the outlook cut. The company is still evaluating the final tariff levels for vehicles built in Mexico, where it produces the Q5 SUV, its best-selling model in the U.S. [2].

References:
[1] https://www.morningstar.com/news/dow-jones/20250728849/audi-cuts-guidance-as-tariffs-and-restructuring-hit-earnings-update
[2] https://www.investing.com/news/earnings/audi-slashes-fullyear-outlook-amid-higher-tariffs-restructuring-costs-4154451