The Volkswagen Group has released its financial results for the first nine months of 2025, showing modest growth in sales revenue despite a challenging global environment. The company reported a 1 percent increase in sales revenue compared to the same period last year, with gains in the Core and Progressive brand groups offsetting declines in the Sport Luxury Brand Group.
Operating results were negatively affected by price and mix effects, as well as US tariffs. Additional charges totaling approximately EUR 4.7 billion stemmed from provisions and impairments related to Porsche’s product strategy realignment and a goodwill impairment at Porsche. The company noted that ongoing performance programs are starting to show positive effects.
Net cash flow for the first nine months of 2025 was down 47 percent from the previous year, primarily due to lower cash flow from operating activities, outflows related to US tariffs, and the acquisition of additional shares in Rivian. Regional performance varied: South America saw a 13 percent increase in growth, Western Europe rose by 4 percent, and Central and Eastern Europe increased by 11 percent. These gains more than compensated for expected declines in China (down 2 percent) and North America (down 11 percent). Orders for battery electric vehicles (BEVs) grew significantly—up 64 percent—and accounted for about 22 percent of total order intake in Western Europe.
Volkswagen Group expects its full-year sales revenue for 2025 to remain steady compared to last year. The operating return on sales is projected between 2.0 and 3.0 percent.
In its Automotive Division, Volkswagen anticipates an investment ratio between 12 and 13 percent for the year, with net cash flow expected around zero euros after accounting for investments focused on future projects and restructuring measures. Net liquidity is forecasted at approximately EUR 30 billion by year-end. The group continues to prioritize solid financing and liquidity policies.
The company’s outlook assumes sufficient availability of semiconductors.
Starting January 2025, changes to reporting methods will provide greater transparency in disclosing Automotive Division sales revenue. This adjustment will mathematically lower the investment ratio by about 130 basis points to reach an estimated 13 percent for fiscal year 2024. Looking ahead under this new logic, Volkswagen expects its investment ratio to fall between 12 and 13 percent in 2025 and approach roughly ten percent by 2027.
Volkswagen reported that "significant increase in unit sales and sales revenue led to an improvement of seven percent in the operating result." Despite considerable headwinds such as US import tariffs, restructuring expenses, and ramp-up costs for electric vehicles with lower margins, "the operating margin remained stable year-on-year at four point four percent."
For passenger cars specifically, "Volkswagen passenger cars’ operating margin slightly improved to two point three percent," supported by cost discipline measures under the “Zukunft Volkswagen” program. Škoda maintained strong profitability at eight percent while SEAT/CUPRA and Volkswagen Commercial Vehicles posted results below last year's levels.
Within Brand Group Progressive, "operating result declined by twenty-six percent to EUR one point six billion." While higher sales revenues had positive effects, these were outweighed by US import tariff charges, CO₂ regulation costs, and rescheduling of an electric platform for D-segment vehicles; consequently "the operating margin decreased to three point two percent."
Porsche deliveries fell eleven percent to around one hundred ninety-eight thousand units; corresponding sales revenue dropped to EUR twenty-three point eight billion with an operating result of negative EUR zero point two billion. According to management: "Key drivers included lower volumes due to the challenging market environment in China, expenses for strategic realignment of product portfolio and battery activities, US import tariffs, increased material costs," along with higher capitalized development costs recognized as profit or loss.
TRATON's operating result dropped forty-six percent to EUR one point seven billion because of reduced volumes alongside adverse customer/market mix impacts, currency fluctuations, and expanded production activities in China; net cash flow was negative at EUR minus zero point six billion due largely to weaker operations combined with forward-looking investments.
Software-related license revenues rose sharply—up forty-seven percent—while restructuring efforts helped reduce CARIAD's operating loss by EUR zero point six billion compared with last year.
Overall group metrics showed slight increases: vehicle deliveries rose one point two percent (to over six-point-six million units), vehicle sales climbed one-point-eight-percent (to nearly six-point-six million units), while production edged up marginally (by zero-point-two-percent). However total employees declined almost two-percent since December last year.
On financials: consolidated group sales revenue reached EUR two hundred thirty-eight-point-seven billion (+0.6%); however group-wide operating result fell fifty-seven-point-eight-percent compared with prior-year figures; earnings before tax also halved while earnings after tax dropped sixty-one-and-a-half-percent.