The Worst May Be Over for Europe’s Carmakers After Tough 2025

European carmakers are inching closer to a recovery next year after a series of profit warnings in 2025, with cost cuts and turnaround plans prompting analysts to raise earnings estimates.

The Stoxx Europe 600 auto index is set for a sharp earnings-per-share rebound in 2026 and 2027, Bloomberg Intelligence data shows. This year is “likely to be the trough” for the sector’s earnings, according to BI strategist Laurent Douillet, as new electric vehicle subsidies, cost measures and strategy overhauls brighten the outlook.