Germany Inc. Seen Defying Downturn With Earnings Growth in 2025
- Elections, US tariffs and an auto sector in crisis pose risks
- Europe’s economy is seen continuing to weigh on equity markets
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A looming election, unemployment edging higher and an automotive industry in crisis may not seem like a recipe for German corporate success this year, but a look at earnings projections tells a different story.
The companies that make up the DAX Index are expected to deliver earnings per share growth of more than 10% in 2025, the highest among European peers, data compiled by Bloomberg Intelligence show. The 40-member gauge, which includes carmakers BMW AG, Mercedes-Benz Group AG and Volkswagen AG, is the only European benchmark seen delivering a double-digit increase, more than the 7.1% average anticipated for the broader Stoxx Europe 600 and ahead of the 8.8% expected for France’s CAC 40.