BMW Ends Dual-Class Share System as Profit Warning and Slowed Buyback Undermine Sentiment
Published on 06/24/2026 at 15:52 | Redaktion boerse-global.de
The BMW Group is executing a radical overhaul of its capital structure, but the move arrives at a moment when its underlying business is under severe strain. The company will scrap its preference shares on June 30, 2026, converting them into ordinary shares after a change in the articles of association is registered. Depository banks will automatically update holdings in the first week of July. Shareholders approved the step in May, ending decades of a two-tier share class system that had complicated trading for investors.
That structural clarity, however, offers little immediate relief for the automaker’s share price, which has been hammered by a sharp deterioration in operating performance. In mid-June, BMW slashed its full-year guidance. The EBIT margin in the automotive division is now expected to come in between 1% and 3%, down from a previous target of up to 6%. The company also warned of lower vehicle deliveries, citing an intensifying price war in China, elevated energy costs, and a pullback in consumer spending tied to the Middle East conflict. Growth in Europe and the US has been too modest to offset the losses.
The stock has reacted brutally. At its latest trade, the shares stood at €60.56, down nearly 37% since the start of the year. That puts the equity within striking distance of its 52-week low of €58.80. The 14-day Relative Strength Index has plunged to 22.9, a reading that signals an extremely oversold condition and suggests selling pressure may be exhausting itself in the near term.
Should investors sell immediately? Or is it worth buying BMW?
Adding to the sense of unease, BMW has throttled back the pace of its share buyback program. In the week to mid-June, the company repurchased only about 130,000 ordinary shares for roughly €8 million via the Xetra trading platform. That represents a dramatic deceleration from the previous two weeks, during which nearly €75 million flowed into share repurchases. The overall buyback program, which runs until April 2027, still aims to return up to €2 billion to shareholders. So far, the group has spent over €1.1 billion, withdrawing about 14 million shares from the market. The current second tranche, capped at €625 million, is scheduled to continue until late summer.
The reduced buyback tempo removes one of the few near-term supports for the stock. While management remains committed to the capital return plan, the fundamental headwinds—weak Chinese demand, margin compression, and geopolitical uncertainty—show no signs of easing. The impending unification of the share classes will simplify the investment case, but until the operational drag lifts, the market is likely to remain skeptical.
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