Volkswagen Group (XETRA:VOW) shares slipped 2% on Friday after the carmaker cut its full-year outlook and posted a sharp drop in second-quarter profit.
Operating profit fell 29% to €3.83 billion, missing analyst forecasts, while sales revenue also came in lower than expected at €80.8 billion.
The company now expects its 2025 operating margin to be between 4% and 5%, down from previous guidance of 5.5% to 6.5%, citing higher U.S. tariffs and restructuring costs.
Electric vehicle sales have grown in Europe, but Volkswagen saw declines in China and North America, the latter hit by tariffs.
Order intake for all-electric vehicles rose sharply, but the group expects full-year sales to be flat versus last year.