Auto industry trends: What can you learn from OEMs’ Q4 2025 earnings reports?
- OEMs recently released their Q4 financial reports, which paint a picture of an industry that is resilient in the face of real challenges.
- OEMs continue to navigate cost pressures and mostly report slight dips in revenue and larger decreases in per-vehicle profitability, but some individual automakers are seeing bright spots in their numbers.
- Consumers are trending away from BEVs while continuing to flock to SUVs and trucks, but the recent spike in oil prices could change that.
In the last few weeks, the major OEMs have all released their Q4 2025 earnings reports. What do they reveal about key auto industry trends?
OEMs continue to face significant challenges. Industry performance has been mixed, with many OEMs reporting some degree of backsliding in revenue or deliveries when measured against Q4 2024.
However, certain manufacturers are also showing signs of resilience and encouragement that the industry as a whole may be able to build on. But could new oil pricing challenges throw a wrench in the works?
Keep reading to learn more about the current state of the auto industry in the North American market.
Cost pressures continue to challenge OEMs
Automotive manufacturers continue to face significant, ongoing cost pressures. While standard cost-of-doing-business challenges like labor remain a factor, the big contributor remains tariffs, which have driven up parts and materials costs for the industry as a whole.
In fact, for many OEMs, Q4 was the moment when the full weight of tariff cost increases hit. This is because pre-tariff materials inventories largely ran out, leaving manufacturers and auto parts suppliers forced to pay tariff prices when restocking.
In many cases, manufacturers chose to absorb a portion of tariff costs themselves rather than pass the full cost on to consumers. Leaders have generally made the calculation that taking the financial impact was preferable to losing market share.
Revenue was slightly down — except when it wasn’t
Of the 13 major OEMs that Wipfli analyzed, 8 reported a dip in revenue. This included both American manufacturers like GM and Ford, as well as Japanese or European carmakers like Honda, Nissan and BMW.
However, some companies actually experienced significant growth. Stellantis, Hyundai and Toyota all reported an increase in revenue year-over-year, with Stellantis, in particular, standing out from the pack with a jump of 17%.
BEV makers generally took a notable dip in revenue, likely reflecting the decrease in government friendliness towards electric vehicles that took place between 2024 and 2025. However, tiny Rivian stood out by more than doubling its YoY revenue with a 123% increase — by far the biggest jump of any car maker.
Deliveries hold relatively steady
Overall deliveries held relatively steady in Q4 2025. Toyota edged out GM by a nose to take the North American sales lead with 784,000 units sold versus 780,000.
Other non-American automakers fared less well than Toyota did, with Honda, Nissan and Volkswagen all reporting fewer units moved than this time a year ago. Buyers appear more skeptical of EVs than they did at this time a year ago, no doubt in part because EV makers can no longer rely on federal tax credits of up to $7,500.
However, steady SUV and truck sales have helped to make up for a dip in the EV market. U.S. buyers continue to flock towards both categories, even as the average monthly car payment hovers in the range of $750.
Profits per vehicle drop, sometimes dramatically
Nearly all OEMs saw at least some drop in profits per vehicle during Q4 2025. Two heavyweights that took a hit were Ford reporting a 47% decrease and Honda facing a 33% haircut.
However, GM noted an 11% increase and Toyota, while disclosing a 5% dip in per vehicle profits, was still riding high with an overall profit of $3,015 per vehicle.
What could rising oil prices mean for these trends?
Even as OEMs were releasing their Q4 reports, the world was shifting beneath them. What could the current oil price shock mean for the auto industry and the trends explored here?
- Oil prices, which were hovering around $60 a barrel at the end of Q4 2025, have spiked dramatically since the U.S. began a war against Iran, which responded by closing the Strait of Hormuz, a vital shipping lane for tankers that carry roughly 20% of the global oil supply.
- Oil has been frequently trading at above $100 a barrel since mid-March, while the average price of gas has crossed the $4 mark.
- Even with signs that the war may be resolving, damage to existing regional energy infrastructure and ongoing geopolitical tensions could keep prices high for months or years to come.
At what point will this affect auto buyers’ preferences? Americans seem as in love with trucks and SUVs as ever, but could we see a shift back toward BEVs should prices at the pump continue to climb?
What’s next?
OEMs and auto supply companies should carefully evaluate current market trends, including both economic and political factors, to determine a course of action for the rest of 2026 and beyond:
- Focus on profitability: Actions to strengthen profitability, like streamlining production, claiming tax incentives, eliminating waste and leveraging new technologies to boost efficiency, are critical right now.
- Talk to your advisor: Collaborate with your strategic advisor to understand what’s happening in the market, what your peers are doing and how your business should adapt to meet the moment.
- Consistently evaluate your costs: Get as much data as you can on both your business costs and industry averages, and then explore what you can do to contain them so your business can stay flexible.
How Wipfli can help
We advise automotive parts manufacturers on how to gain stability and profitability in a shifting market. Let’s talk about the challenges you face and how we can help you overcome them. Start a conversation.
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