Volkswagen stock surged 4.6% to €105.3, leading Germany’s DAX after the automaker posted a €6 billion 2025 cash flow, far surpassing expectations. Read more now!
Volkswagen’s shares leapt 4.6% on Thursday, closing at €105.3 and propelling the German DAX to the top of the index. The jump marks the automaker’s strongest single‑day gain in six months.
Robust 2025 Cash Flow Raises the Bar
The company announced that its automotive segment is expected to generate approximately €6 billion (about $7 billion) in net cash flow for 2025. That figure is roughly €1 billion higher than the previous fiscal year and far exceeds Volkswagen’s own internal target, which had been near breakeven.
Analysts Cheer the Unexpected Upside
Market analysts were taken aback by the scale of the improvement. In a note, Jefferies highlighted that the cash‑flow outlook “far outpaces what the market had predicted.” The positive surprise bolstered sentiment across Europe’s large‑cap stock pool, making Volkswagen the top performer among German blue‑chip equities.
Macro Support Helps the European Auto Market
Broader industry sentiment also benefited from recent macro‑economic developments. Warburg Research’s Fabio Hoelscher pointed out that the U.S. decision to drop proposed tariffs on European allies—amid tensions over Greenland—eased trade‑war fears that had lingered in the sector.
Volkswagen Warns of Near‑Term Challenges
During the same investor‑day call, the automaker issued a cautious outlook. Bernstein analysts warned that pricing pressure could stay high and that profits from the joint venture in China may dip in 2026 before rebounding in 2027.
European Car Makers See Broad Gains
The rally in Volkswagen’s stock coincided with a 2.3% rise in the pan‑European automotive index. Germany’s other auto giants—BMW, Mercedes‑Benz and Porsche—posted gains ranging from 1.9% to 2.6%.
Hoelscher added that the recovery is further reinforced by Germany’s generous federal subsidies for electric vehicles, combined with a relatively low valuation for auto stocks after a prolonged period of pressure. Volkswagen plans to release its full FY 2025 results and a 2026 outlook on March 10.