Volkswagen announced a 15% year-over-year drop in its yearly operating profit, citing rising costs and “extraordinary expenses” tied to its restructuring plan. Despite the decline, the German automaker reported sales of 324.7 billion euros ($352.8 billion) for 2024, a slight increase from 322.3 billion euros the previous year.

The company expects sales revenue to grow by up to 5% in 2025, with an operating margin projected between 5.5% and 6.5%. Volkswagen described its 2024 performance as “solid results in a challenging environment,” even as car sales declined by 3.5%.

At its annual general meeting in May, Volkswagen will propose a dividend of 6.30 euros per ordinary share and 6.36 euros per preferred share, a 30% decrease from the previous year. The company also reported a 10.5% drop in net liquidity for its automobile division, which stood at 36 billion euros at the end of 2024.

Looking ahead, Volkswagen warned of challenges, including political uncertainty, trade restrictions, geopolitical tensions, rising competition, volatile commodity prices, and emissions-related regulations.