Gallery
Picture 1
Audi finance the latest debt issuance by Audi
New with box
Oops! Looks like we're having trouble connecting to our server.
Refresh your browser window to try again.
The latest debt issuance by Audi Finance achieved oversubscription at 1.3x, sending a positive signal to both fixed income and equity markets. This robust demand hints at possible valuation expansion in H2 2024 if revenue growth sustains above 5%. Now that the one-time $7,500 federal tax credit/rebate on full-electric vehicles expired on October 1 as part of the so-called “Big Beautiful Budget Bill,” automakers are shifting gears to withstand or even prevent what is expected to be a major sales decline. ⺠In the 1st half-year of 2025, the Brand Group Progressive delivered 794,088 cars of the Audi, Lamborghini and Bentley brands, a decline of 5.9 percent. ⺠Deliveries of fully electric Audi models increased by 32 percent. ⺠Revenue increased by 5 percent to â¬32.6 billion, mainly driven by a better mix as well as a higher BEV share. ⺠Operating profit amounted to â¬1.1 billion and the operating return on sales was 3.3 percent â mainly influenced by US tariff costs and restructuring expenses related to the Audi agreement for the future. ⺠Net cash flow came in at â¬0.9 billion. Recent trading data shows Audi Finance-linked equity instruments outperforming the broader DAX auto finance index by 1.7% in August