BMW Trades Margin for Momentum: Battery Deals, Buy-In Cuts and a Broker Divide
Published on 11/09/2026 at 12:41 | Editorial boerse-global.de
BMW has locked in its battery supply chain for the next generation of electric models, naming Samsung SDI and LG Energy Solution as cell suppliers for its Gen6 high-voltage batteries. Samsung SDI will ship from European plants, LG Energy Solution from the United States, with deliveries from existing facilities due to begin at the end of the 2020s.
The sourcing announcement landed in the same week the Munich group reported third-quarter 2026 results — and the picture there was less comfortable. Group revenue slipped 5.8% year on year to EUR 30.5 billion, while profit before tax fell 10.6% to EUR 2.08 billion. Net income came in at EUR 1.45 billion, roughly 15% below the prior-year quarter, with the Tagesschau citing both China weakness and severance costs as drags.
Deliveries Slide as China Weighs
Vehicle shipments dropped 6.3% to about 551,000 units, and BMW singled out China as the principal pressure point. The Automotive segment's EBIT margin held at 3.4% — a weaker reading than analysts had feared, which helped the shares edge higher at one stage on Wednesday despite a fresh guidance cut. Investors also took heart from the pace of cost reduction.
That guidance cut is the elephant in the room. BMW now expects an Automotive EBIT margin of between ?0.5% and +0.5% for 2026, blaming non-operating charges in the fourth quarter tied to accelerated and expanded portfolio and structural measures. According to Handelsblatt, these include a faster restructuring and the earlier phase-out of older vehicle and technology generations.
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Two Brokers, One Direction
JPMorgan trimmed its 2026 and 2027 operating profit forecasts on Wednesday, pointing to the announced one-off restructuring charges, but kept its Overweight rating. The US bank cut its price target to EUR 68 from EUR 82. Deutsche Bank Research stayed positive too, maintaining Buy on Thursday even as it lowered its target to EUR 66 from EUR 71.
The market was less forgiving by Friday, when BMW shares fell 3.0% and the DAXsector Automobile weakened alongside them. The stock had already come under pressure in after-hours trading when the guidance reduction first surfaced.
Fewer Titles, Faster Exits
Chief executive Milan Nedeljkovi? used Wednesday to sketch out a leaner organisation: the number of senior vice president roles is to fall by 20%. The voluntary severance programme for indirect employees in Germany will close early, so strong was the uptake.
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On the product front, series production of the eighth-generation BMW 3 Series saloon with combustion engines began at the Dingolfing plant on 3 November, with output split between Dingolfing and Munich. Plug-in hybrid variants are slated for 2027. BMW also unveiled the new M 1000 RS motorcycle on Wednesday, capped at 1,000 units worldwide and due at dealers in March 2027.
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