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Volkswagen's (VWAGY) Audi Group on Monday retained its full-year revenue outlook while not accounting for the impact of Trump tariffs after its first-quarter (Q1) revenue jumped over 12% year over year.
The group’s revenue in the quarter was €15.43 billion ($17.51 billion), up 12.4% from the same period last year, owing to factors including higher electric vehicle sales.
Operating profit rose to €537 million from €466 million in the corresponding quarter of 2024.
The company said that its financial performance in the first quarter reflects ongoing challenges, including the global economic downturn, intensified competition, and political uncertainties.
Audi Group includes the Audi, Bentley, Lamborghini, and Ducati brands. In Q1, the group delivered 388,756, a dip of 3.3% year over year.
Audi alone delivered 383,401 vehicles to customers in Q1, marking a decline of 3.4% YoY.
Audi deliveries in North America, excluding Mexico, fell 2.1% owing to many vehicle models undergoing a generational change.
In China, deliveries fell 7% owing to intense competition.
The Audi Group expects revenue of between €67.5 billion and €72.5 billion for 2025. The company expects the operating margin to be 7% to 9%, with net cash flow between €3 billion and €4 billion. However, the company said the new forecast does not include the financial implications of import tariffs in the U.S..
Audi imports vehicles into the U.S. as it has no factories in the country, making it susceptible to the 25% tariffs on auto imports that went into effect in early April.
CEO Gernot Döllner said the company has taken “decisive steps” towards repositioning itself.
“The year will continue to be very challenging due to the global economic conditions. But Audi has started to execute its strategy and is delivering on it,” he said.
Audi is now looking to launch ten new plug-in hybrid models by the end of 2025.
On Stocktwits, retail sentiment around VWAGY rose from ‘neutral’ to ‘bullish’ territory over the past 24 hours while message volume remained at ‘low’ levels.
VWAGY stock has gained by over 22% this year and has fallen by nearly 24% over the past 12 months.
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