This early in what could prove to be a fraught fiscal year, BMW Motorrad is keeping its cards very close to the corporate chest, well aware that the overall biker background is already a distinctly difficult market environment with the shadow of US President Donald Trump looming balefully over operations. BDN Financial editor Roger Willis reports.
During the first quarter of 2025, most Motorrad parameters showed serious signs of stumbling. Total revenue in this three-month period fell by 7.6% to £686.2m. Operating profit was 28.3% down to £64.7m. Operating margin declined from 12.2% to 9.4%. Pre-tax earnings were 29.2% lower at £63.8m. Net profit sank by 30.7% to £44.3m. The brand’s global retail motorcycle and scooter sales retreated by 3.9% to 44,609 units.
Flagging a brighter angle, the BMW Group’s Q1 statement highlighted a stable demand situation in its motorcycles segment, where deliveries to customers are predicted to increase slightly owing to the full availability of models, including the BMW R1300GS Adventure, but then ran out of excuses. The segment operating margin is apparently expected to range between 5.5% and 7.5% — well below where it is now — and the segment return on capital employed (RoCE) should remain between 13% and 17%, no significant change on an annual outlook basis.
Hunting more reasons to be cheerful, BMW Group noted a rebound in exports ahead of anticipated US import tariffs. But it couldn’t ignore the fact that while inflation rates have stabilised in both the US and Europe, geopolitical developments and trade tensions have now become persistent sources of risk, because higher tariffs and the associated upward pressure on prices could cause inflation to rise again, potentially slowing the pace at which central banks ease their monetary policy.
€-£ currency translation at forex rates applicable on 7 May