Published by Global Banking & Finance Review®
Posted on January 22, 2026
2 min readLast updated: January 22, 2026
Volkswagen's automotive division reported a strong cash flow of 6 billion euros, boosting shares by 5.6%. Analysts were surprised by the magnitude of the increase.
By Amir Orusov
Jan 22 (Reuters) - Shares in Volkswagen jumped to the top of Germany's blue-chip DAX index on Thursday after Europe's biggest carmaker reported better-than-expected 2025 net cash flow in its automotive division.
Its shares were 4.6% higher by 1058 GMT, putting them on track for their biggest one‑day gain in six months.
Net cash flow for the year came in at around 6 billion euros ($7 billion), Volkswagen said late on Wednesday, 1 billion euros higher than the previous fiscal year and beating the company's expectations for net cash flow of around zero.
While management had already hinted at potential upside to the guidance, the magnitude is surprising, analysts at Jefferies said in a note.
Industry sentiment was further buoyed by U.S. President Donald Trump backing away from his threats of tariffs against European allies opposed to his designs on Greenland, which eased immediate market worries over punitive trade measures, Warburg Research analyst Fabio Hoelscher said.
In a regular call with investors that also took place on Wednesday, Volkswagen, however, said it expects the pricing environment to be tense and profits from its Chinese joint venture to fall in 2026 before recovering in 2027, Bernstein analysts wrote.
The pan-European automobiles and parts index was up around 2.3%, with German carmakers BMW, Mercedes and Porsche rising between 1.9% and 2.6%.
"The federal electric vehicle subsidies in Germany and a technical rebound on the sector's relatively low valuations could be helping too," Hoelscher added.
Volkswagen is scheduled to release full-year 2025 results and its outlook for 2026 on March 10.
($1 = 0.8551 euros)
(Reporting by Amir OrusovEditing by Linda Pasquini and Miranda Murray)
The stock market is a collection of markets where shares of publicly traded companies are bought and sold. It serves as a platform for companies to raise capital and for investors to trade shares.
A share represents a unit of ownership in a company. When you own shares, you own a portion of that company and can benefit from its profits and growth.
The automotive industry encompasses all companies and activities involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It includes automakers and parts suppliers.
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