Volkswagen’s Q4 2024 results top analysts estimates, company forecasts a stable 2025
- Volkswagen Q4 2024 revenue rose 0.2% to €87.38 billion, significantly above analysts estimate of €83.9 billion (boosted by strong development in Financial Services) while operating return on sales came in at 7.0%, above analysts estimate of 6.4%.
- Net cash flow in the automotive division was down 70% to €1.74 billion in Q4 due to continued high investments and decline in operating profit but supported by reduction in net working capital while net liquidity at the end of the year stood at €36.1 billion (-10.5% y/y).
- For 2025, Volkswagen is guiding revenue to grow by up to 5% (analysts estimate: +1.5%), operating return on sales of between 5.5-6.5% (analysts estimate: 6.2%) and net liquidity in the range of €34-€37 billion.
- Volkswagen brand’s operating return on sales rose to 6.4% in Q4 from 3.17% in Q3.
Assessment
Volkswagen reported a solid quarter and is guiding for a stable 2025 despite the geopolitical headwinds such as the Trump’s tariff. It’s impressive to see Volkswagen’s brand operating return on sales improving, suggesting that costs measures are having a positive impact. However, it’s not good to see pricing starting to decelerate quarter over quarter at Audi, Porsche and Traton.