Volkswagen Group reported a nearly 12% drop in operating profit for the first half of 2026. Operating profit reached €5.9 billion during this period. Revenue remained flat at €158.1 billion. Total vehicle deliveries fell 6.3% following a sharp decline in China. A one-time charge for halting U.S. ID.4 production also pressured earnings.
The automotive division generated €3.2 billion in net cash flow. This performance represents a significant turnaround from a loss in the prior year. New battery electric vehicle (BEV) orders in Europe surged over 50% during the second quarter. Total electric vehicle deliveries fell slightly despite the order growth.
Volkswagen lowered its full-year revenue forecast to a decline of up to 3%. The company maintained its operating margin guidance for the year. Management anticipates an improved financial performance in the second half of 2026.