FRANKFURT (dpa-AFX) - Hopes for an imminent end to the Iran conflict triggered a recovery rally in the European automotive sector on Tuesday. The price of Brent crude, which had briefly climbed to just under 120 US dollars the previous day before retreating significantly, continued to fall. On the Dax, Volkswagen preferred shares benefited from this trend, having slumped to their lowest level since June 2025 just a day earlier. According to analysts, the carmaker's financial results and outlook were somewhat mixed.
By midday, VW shares had risen by three percent to 90.50 euros, performing only slightly better than titles from Mercedes-Benz, BMW, or Porsche AG. Shares in the VW holding company Porsche SE climbed by 2.8 percent. Meanwhile, the German benchmark Dax index recovered with a 2.4 percent gain.
Analyst Christian Frenes from Goldman Sachs saw both light and shadow in VW's key figures for the final quarter of 2025. While the core business and the development of the brand group were strong, the group's operating performance fell short of expectations - primarily due to the Financial Services division, which was weighed down by a provisioning effect. Furthermore, following the weaker-than-expected outlook for 2026, the average analyst estimate (consensus) for earnings per share is now likely to decrease slightly.
RBC analyst Tom Narayan pointed out that the midpoint of the management's target range for the group's operating profit (Ebit) is only 15.5 billion euros, whereas the consensus for 2026 stands at 17.1 billion euros. Additionally, VW disappointed with its statements on free cash flow in the automotive business, as the midpoint of this range also sits significantly below consensus estimates.
On a positive note, however, Narayan observed that the Wolfsburg-based company is better positioned than its European competitors regarding US tariffs, and the situation for the core VW brand in China appears to be improving./ck/tih/stk
