BMW Stock: Profit Plunge Amid Accelerated Share Buybacks

BMW reported a significant decline in third-quarter profits, with net income falling by nearly 84% to €476 million. This downturn is primarily attributed to technical issues with brake systems and weakening demand in the Chinese market. Despite these challenges, the automaker is expediting its share repurchase programs, demonstrating a commitment to delivering attractive returns to shareholders through both dividends and buybacks.

Future Outlook and Strategic Moves

The company aims to complete its ongoing €2 billion share buyback program by April 2025, considerably earlier than initially planned. BMW's management is also considering seeking authorization for additional share repurchases at the upcoming annual general meeting. Concurrently, the automaker is working diligently to resolve the brake-related issues for most affected vehicles by year-end, which is expected to boost sales volume in the fourth quarter. Despite current difficulties, BMW remains optimistic about meeting stricter EU CO2 fleet targets from 2025 onward, anticipating a substantial increase in electrified vehicle sales in the coming year.