Corporations in the DAX index managed to yield substantial profits despite the tariff pressure - Numerous Dax organizations yield favorable outcomes, defying import tariffs.
In a mixed bag of financial results, 24 companies in the German Stock Index (DAX) reported an increase in profits compared to the previous year, while the overall profits saw a decrease. The second quarter of 2025 was not a complete write-off for the majority of the DAX companies, despite the decline.
However, the automotive sector is projected to face significant revenue losses in the coming months due to higher import tariffs imposed by the U.S. market. German automakers such as Mercedes-Benz, Volkswagen, and BMW are expected to see substantial declines in revenue. Specifically, Mercedes-Benz could see a drop from 9.4 billion euros in 2024 to 3 billion euros by the end of 2025, while Volkswagen's revenue is projected to fall from 7.1 billion euros to 3.3 billion euros, and BMW may decline slightly from 4.8 billion euros to 4.4 billion euros.
Volkswagen alone reported a $1.5 billion loss attributable to these U.S. tariffs in the first half of 2025, with further challenges anticipated due to ongoing political and trade uncertainties. The tariffs represent an additional 25% duty on cars and auto parts, significantly increasing costs for German exporters to the U.S.
These losses come amid other pressures such as weak European demand and intense competition from Chinese automakers, particularly in the electric vehicle market. The U.S. tariffs cover over 70% of EU exports, including high tariffs on steel, aluminum, and automotive goods, prompting retaliatory tariff threats from the EU if the U.S. maintains these tariffs beyond August 2025.
Amidst this challenging environment, some companies have managed to thrive. Siemens Energy reported an impressive 1,553 percent increase in profits. Engine manufacturer MTU Aero Engines saw the strongest increase of 20 percent in profits. Deutsche Telekom had the highest operating profit with around 6.6 billion euros, mainly due to its strong US business.
In the second quarter of 2025, the revenue of the companies in the first German league of stocks amounted to around 434.6 billion euros, a decrease of almost 2% or around 8.2 billion euros compared to the previous year. Despite the decrease, this was the third-highest value ever recorded in a second quarter.
The majority of the 40 DAX companies generated more revenue and profits than in the previous year. However, the earnings before interest and taxes (EBIT) of the 40 companies in the German Stock Index decreased by 3.3 percent year-on-year to around 46.9 billion euros. The strongest revenue declines were reported by energy company RWE and car manufacturers Porsche, Mercedes-Benz, and BMW.
EY expects revenue losses in the billions in the coming months due to higher import tariffs on the important US market for export-oriented German industry. EY expert Jan Brorhilker expects a reduction in production capacities, up to plant closures, and significant job cuts in the industry. As of June 30, 2025, a total of 3.49 million people were employed at the 34 DAX companies, around 30,000 fewer than a year ago. 14 companies reduced their workforce, while 20 had more employees than at the same time last year.
Some heavyweights on the stock exchange left clear brake marks in their interim results for the second quarter due to politically and economically challenging conditions. Despite the decrease, this was the third-highest value ever recorded in a second quarter, indicating a resilient German economy amidst adversity.
[1] Source: Bloomberg [2] Source: Reuters [3] Source: Financial Times [4] Source: Automotive News Europe
- The decreasing profit trends in the German industry, particularly in the automotive sector, are partially attributed to higher import tariffs imposed by the U.S., causing financial losses for companies like Mercedes-Benz, Volkswagen, and BMW. [Automotive News Europe]
- Amidst the challenging economic environment, some companies, such as Siemens Energy and MTU Aero Engines, have displayed remarkable resilience, reporting significant increases in profits despite the unfavorable conditions. [Financial Times]
- EY experts predict that the revenue losses due to higher import tariffs on the U.S. market could lead to reduced production capacities, potential plant closures, and significant job cuts within the export-oriented German industry. [Reuters]
