BMW AG’s profit from carmaking in the second quarter was slightly better than expected after the German company reduced spending and demand for new models was strong. The Munich-based automaker reported automotive earnings before interest and taxes that beat analyst estimates, reflecting the impact of cost-cutting measures implemented across its production network. Revenue in the automotive segment also showed resilience, supported by robust order intake for recently launched vehicles such as the updated 5 Series and the electric i5.

Management maintained its full-year guidance, citing a solid product pipeline and continued pricing discipline. However, the company warned of headwinds from higher raw material costs and supply chain constraints in the second half. The results underscore BMW’s ability to navigate a challenging macroeconomic environment while investing heavily in electrification and digitalization. Investors responded positively, with shares rising in early trading. The performance contrasts with some rivals who have issued profit warnings amid softening demand in key markets like China.