Aumovio cuts 2026 outlook after weak first-half results

Frankfurt, Germany — German automotive technology supplier AUMOVIO cut its full-year guidance after reporting lower first-half revenue and earnings, citing weaker vehicle production, geopolitical uncertainty and the financial impact of a settlement with BMW.

The company said adjusted sales fell 8.9% to 8.6 billion euros ($9.9 billion) in the first six months of 2026 from 9.5 billion euros a year earlier. Adjusted earnings before interest and taxes (EBIT) declined to 157 million euros from 260 million euros, while the adjusted EBIT margin narrowed to 1.8% from 2.7%.

AUMOVIO said an agreement announced on July 30 resolved a longstanding legal dispute with BMW, strengthened the companies’ business relationship and could lead to future projects with an order volume exceeding 1 billion euros. Accounting effects from the settlement were reflected in the company’s first-half results, while related payments are expected to be made during the second half of the year.

Chief Executive Officer Philipp von Hirschheydt said the agreement would strengthen the partnership between the two companies while supporting future growth initiatives.

Second-quarter adjusted sales fell to 4.2 billion euros from 4.7 billion euros a year earlier, while adjusted EBIT dropped to 50 million euros from 167 million euros. The adjusted EBIT margin declined to 1.2% from 3.5%.

Excluding the accounting impact of the BMW settlement, adjusted sales would have totaled 4.3 billion euros, adjusted EBIT would have reached 152 million euros and the adjusted EBIT margin would have remained unchanged from the prior year at 3.5%, the company said.

Adjusted free cash flow for the quarter was negative 174 million euros, compared with negative 144 million euros a year earlier. Normalized free cash flow was negative 34 million euros, compared with negative 25 million euros during the same period last year.

Among AUMOVIO’s business units, Autonomous and Commercial Mobility reported a 12.7% decline in adjusted sales to 1.4 billion euros, primarily because of lower demand in the United States and unfavorable currency movements. Adjusted EBIT was negative 14 million euros.

Architecture and Network Solutions reported adjusted sales of 2.4 billion euros, down 6.1%, while adjusted EBIT rose to 142 million euros from 102 million euros.

Safety and Motion reported adjusted sales of 3.4 billion euros, down 9.6%, while adjusted EBIT fell to 29 million euros from 156 million euros, largely because of costs associated with the BMW settlement.

User Experience reported adjusted sales of 1.4 billion euros, down from 1.5 billion euros in the first half of 2025, while adjusted EBIT increased to 14 million euros from 11 million euros.

AUMOVIO also unveiled a capital allocation strategy focused on maintaining a strong balance sheet, investing in organic growth, sustaining dividend payments and returning excess cash to shareholders through share buybacks.

Chief Financial Officer Jutta Dönges said weak market conditions were expected to persist during the remainder of the year, pointing to lower production volumes, trade tensions and geopolitical uncertainty.

According to industry forecasts from Mobility Global, worldwide automotive production is expected to decline slightly in 2026, with Europe, North America and China expected to record the largest decreases.

AUMOVIO now expects full-year adjusted sales of between 17 billion euros and 17.5 billion euros, compared with previous guidance of 17 billion euros to 18.5 billion euros. It forecast an adjusted EBIT margin of 3% to 4%, down from an earlier estimate of 3.5% to 5%, and normalized free cash flow of 500 million euros to 700 million euros, compared with previous guidance of 500 million euros to 800 million euros.

This version follows the classic Reuters formula of headline point first, supporting financial data second, executive commentary third, divisional performance fourth and guidance last. It also removes most marketing language and substantially reduces the length of executive quotations.