Why VW's 1% margin is not the key message

Deutsche Bank company update on Volkswagen AG (VOWG_p.DE, VOW3.GR). Volkswagen's profit warning initially looks severe: the company now guides for an FY26 operating margin of up to 1% versus previous guidance of 4.0-5.5% and consensus of around 4.1%. However, around EUR10bn of special effects will weigh on earnings this year, implying an underlying margin of roughly 4%, broadly in line with market expectations. From our perspective, the key question is not whether underlying profitability missed consensus;