Volkswagen's (VOW3 GY) Audi says it sees operating margin between 6-8% in 2026 (vs 5.1% in 2025); says US tariff hit results by EUR 1.2bln in 2025

• Says deliberations on possible US plant with Volkswagen continue this year
• Sales of E5 Sportback is below expectations in the first two months of the year

Volkswagen's Audi outlook for operating margins improving to 6-8% in 2026 signals confidence in an effective strategy to recover from current challenges. However, the anticipated significant impact from US tariffs, costing EUR 1.2 billion in 2025, raises concerns about the near-term profitability outlook and ongoing geopolitical risks. Traders should watch how this outlook adjusts stock sentiment in the automobile sector, particularly within Europe and the US.