The Volkswagen Group has released its financial results for the first nine months of 2025, reporting a slight increase in sales revenue despite facing challenging market conditions. The company’s sales revenue rose by 1 percent compared to the previous year, with growth in the Core and Progressive brand groups offsetting a decline in the Sport Luxury Brand Group.
Volkswagen’s operating result was affected by negative price and mix effects, as well as US tariffs. Additional charges totaling around EUR 4.7 billion were incurred due to provisions and impairments related to Porsche’s product strategy realignment and a goodwill impairment at Porsche. Performance programs are beginning to show results, but net cash flow for the period was 47 percent lower than last year, influenced by reduced cash flow from operations, outflows related to US tariffs, and further investment in Rivian shares.
Regional performance varied: South America saw a 13 percent increase in growth, Western Europe grew by 4 percent, and Central and Eastern Europe increased by 11 percent. These gains compensated for expected declines in China (down 2 percent) and North America (down 11 percent). New model launches across all drive types contributed to order growth, with battery electric vehicle (BEV) orders up by 64 percent—accounting for about 22 percent of total order intake in Western Europe.
Looking ahead, Volkswagen expects its full-year sales revenue for 2025 to be similar to last year’s figure. The group projects an operating return on sales between 2.0 and 3.0 percent. In the Automotive Division, an investment ratio between 12 and 13 percent is anticipated for the year, with net cash flow expected to be around zero euros due to investments in future projects and restructuring measures. Net liquidity is forecasted at approximately EUR 30 billion for year-end.
These projections rely on sufficient semiconductor availability.
From January 2025 onward, changes in reporting will provide more transparent disclosure of automotive sales revenue. This adjustment will mathematically lower the reported investment ratio by about 130 basis points for fiscal year 2024; moving forward, the investment ratio is expected to decrease further through 2027.
The group reported a significant increase in unit sales and sales revenue leading to a seven-percent improvement in operating result within certain segments. The overall operating margin remained stable at 4.4 percent despite pressures from US import tariffs, restructuring costs, and ramp-up of lower-margin electric vehicles.
For Volkswagen passenger cars specifically, the operating margin improved slightly to 2.3 percent due to cost discipline measures under “Zukunft Volkswagen.” Škoda maintained strong profitability at eight percent while SEAT/CUPRA and Volkswagen Commercial Vehicles fell below prior-year levels.
Brand group Progressive saw its operating result fall by twenty-six percent (to EUR 1.6 billion), mainly because higher revenues were outweighed by charges from US tariffs, CO₂ regulations, and delays rescheduling an electric platform for D-segment vehicles; its operating margin dropped accordingly.
Porsche deliveries declined eleven percent (to about 198,000 units), with sales revenue down to EUR 23.8 billion and an operating loss of EUR –0.2 billion attributed primarily to weaker demand in China, strategic portfolio changes including battery activities, US tariffs, higher material costs, and increased capitalized development expenses.
TRATON recorded a forty-six-percent drop in operating result (EUR 1.7 billion), affected mainly by lower volumes as well as market mix shifts, currency impacts, and expansion efforts in China; negative net cash flow reflected both these challenges and ongoing investments.
License revenues from delivered software rose sharply—by forty-seven percent—while restructuring helped reduce CARIAD’s operating loss compared with last year. Group Mobility improved its operating result thirty-seven percent (to EUR 2.9 billion), driven largely by European growth; contract volume also increased nearly five percent.
Across all brands during January–September:
– Deliveries reached over six-point-six million units.
– Sales revenue totaled EUR 238.7 billion.
– Operating result stood at EUR 5.4 billion.
– Operating return on sales was reported at two-point-three percent.
– Earnings after tax amounted to EUR 3.4 billion—a sixty-one-percent decrease from last year.
– Cash flows from automotive operations declined twelve percent versus prior-year figures.
– Net liquidity decreased five-and-a-half percent since December.
The company noted that these results include contributions from equity-accounted Chinese joint ventures but exclude their direct financials from consolidated totals.
