(RTTNews) - German automaker BMW Group reported a decline in second-quarter profit on Thursday, driven by softer revenues and reduced vehicle deliveries.

Additionally, the firm kept its fiscal 2026 forecast unchanged after trimming it in mid-June over weak trends in China and fallout from the Middle East conflict, among other issues.

BMW Group also confirmed an accord with the Works Council on a broad staff restructuring plan that includes voluntary severance options.

The initiative aligns with efforts to speed up and deepen actions addressing ongoing shifts in the business landscape.

For the full year 2026, the company still expects a notable drop in group profit before tax compared with the prior year.

The Automotive segment EBIT margin remains targeted in the 1 percent to 3 percent range, alongside a modest reduction in segment deliveries.

In the second quarter, sharply weaker market conditions in China, rising competition especially in Asia-Pacific, and ongoing effects from the Middle East conflict weighed on results.

Quarterly net profit fell 34.9 percent to 1.200 billion euros from 1.842 billion euros a year earlier. Earnings per share dropped 28.1 percent to 2.05 euros from 2.85 euros.

Group pre-tax profit totaled 1.697 billion euros, down 35.1 percent year-over-year.

Profit before financial result or EBIT declined 38.7 percent to 1.631 billion euros, while the EBT margin slipped 2.3 percentage points to 5.4 percent from 7.7 percent.

Revenues decreased 7.9 percent to 31.259 billion euros from 33.927 billion euros, reflecting tougher competition and lower volumes.

The BMW Group delivered 590,947 BMW, MINI and Rolls-Royce vehicles in the quarter, a 4.9 percent decline from the prior year.

BMW volumes fell 7.7 percent and Rolls-Royce dropped 11.5 percent, while MINI rose 17.1 percent.

Motorcycle deliveries slipped 1.9 percent to 60,112 units.

The group sold 116,807 fully electric vehicles from April to June, up 5.2 percent year-over-year.