BMW - Reflections on Q2 2025
"Everything we do cannot be measured in quarters, but in years or even decades"
Friends of NFTBC, BMW held its quarterly calls with journalists and analysts yesterday. I’ll keep this post fairly brief given its proximity to Part III of the deep dive. As a reminder, if you haven’t checked out Part I yet, it remains free to read.
Additionally, I’m expecting there to be more interesting things to say at Q3 - by then we’ll be starting to get more of an idea about the impact of the new US-EU tariff regime, versus the temporary punitive regime in effect from April until yesterday. Moreover, BMW unveils the production version of its first Neue Klasse model in early September - as you’ll have learnt from the deep dive, with this model BMW is embarking on its most strategic transformation in decades.
For those paying attention, a gulf is starting to open up between BMW and most of its legacy peers. Given that there’s a great deal of noise currently, this fact is not yet completely and unavoidably obvious - BMW, after all, also reported a sizeable drop in earnings for Q2 2025. But my contention is that this gulf will become increasingly evident over the course of the next 12 months or so.
You can access all of BMW’s Q2 2025 materials at this link. For anyone new to the NFTBC style of quarterly reporting, please note that I don’t generally rehash the details of the press release - instead my intention is to pick out details pertinent to the investment case and to look for elements of signal. I’ll also pull out some choice quotes from the two phone calls hosted yesterday - which includes the subtitle to this post.
