Bentley’s FY 2024 Results: Long Term Success, Short Term Challenges

27 March 2025
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As part of Volkswagen AG, the Brand Group Progressive, which includes the Audi, Bentley, Lamborghini, & Ducati brands reported their FY 2024 results recently.  The way the Brand Group Progressive is structured, Audi is king, and the other brands report into Audi’s management.  Volkswagen breaks out a fair amount of financial information for the consolidated Brand Group but a much more modest amount for Bentley.  Based on that minimal information, I have pulled together a brief analysis of Bentley FY 2024 performance, challenges they are facing, recent changes, and what the future might bring.

Starting with a very high level overview of Audi’s results as Audi represents 90% of the Brand Group Progressive’s revenue and 78% of its operating profit.  Audi’s overall health is critical to Bentley as they share resources and platforms.  An example of this is the fact that the Audi Q7, Q8, Bentley Bentayga and Lamborghini Urus all are built off a common platform.

Audi Group FY 2024 Key Results: The key numbers for Audi in FY 2024 were 1,671K cars delivered, (down 11.8 % vs 2023), Net Revenues of €58.1 billion (-8.4%).  Net profit of €2.7 billion (-45.3%).  Net Cash Flow (total group) was €3.1 billion, down 35.2% billion and they finished 2024 with €22.8 billion of Liquidity.

At the annual Audi Media Conference, CEO Gernot Döllner stated:

“Global economic changes and intensified international competition are posing major challenges to Audi and the industry as a whole. We are facing this reality with the courage to break new ground and with confidence in our traditional strengths.”

“We are strategically realigning Audi – with new models, a stronger setup in China, and more efficient structures within the company.”

Which was followed by the following comment from CFO Jürgen Rittersberger:

“To sum up, we have kept Audi on track amid a tense geopolitical and economic situation and closed out the year on financially sound footing.”

If you substituted “Porsche” for “Audi” in the statements above they would hold as true (see: Porsche's 2024 Results).  Like Porsche, Audi is facing major strategic and structural challenges which will take years to sort out.  It’s unlikely that 2025 will be much different from 2024.

A Bit of Background on Bentley

Since 1998 Bentley has been owned by Volkswagen AG.  Since acquiring Bentley, Volkswagen has invested a reported $2 billion in Bentley and production has increased from 414 vehicles in 1998 to a high of 15,174 vehicles in 2022.  Key to Bentley’s success over the last quarter century has been the launch of the Continental GT in 2003, followed by the Bentayga SUV in 2015.  Based on available information it appears that overall Bentley has been profitable since 2011.

 Bentley’s FY 2024 Results: The key numbers for Bentley in 2024 were 10,643 cars delivered, (-21% vs 2023), Net Revenues of €2,648 million (-9.9%).  Operating Profit, of €373 million (-36.6) and a Return on Sales of 14.1% (-6 points). 

Bentley had a rather rough 2024, like many luxury car manufacturers, it was driven by declines in China.  While volumes dropped across all quarters, the rate of decline moderated in the 2nd half of the year and Q4 was Bentley’s strongest quarter.  This is consistent with Bentley’s Chairman and CEO Dr. Frank-Steffen Walliser, messaging that 2024 was a transition year:

 “Despite global challenges in 2024 and the run out and replacement of three

of our four model lines, financial resilience measures introduced towards the

end of the last decade ensured a sixth year of consistent profitability.

In Q4 2024, Bentley delivered 3,300 vehicles.  If they can maintain this sale pace in 2025, they will be back at the near record 2023 levels.

Portfolio: With the relaunches of the Continental GT & Flying Spur in 2024, 60% of Bentley’s sales volume has been refreshed which bodes well for the coming years. Bentley’s challenge is the remaining 40+% of the sales come from the Bentayga SUV.  I haven’t driven either of the two relaunched models, but I have driven the Bentayga and was hugely impressed.  The last major update on the Bentayga was the 2020 facelift which is now getting a bit long in the tooth as Bentayga sales have now declined for three years in a row.  The decline in Bentayga sales has also corresponded with the launch of the Aston Martin DBX.  While the DBX has been far from a success, it does target a very similar customer profile as the Bentayga and will have cannibalized some sales from the Bentley SUV.  In addition, in November 2024, Bentley pushed back its target date for moving to a full electric portfolio from 2030 to 2035.

Product Mix & Profitability: Volkswagen AG does not provide any geographic sales data for Bentley.  They do however provide model series level unit sales data.  In 2024, 3,741 the Continental GTs were delivered (-11.2% vs. 2023), 2,544 Flying Spurs were delivered (-25.3%) and 4,358 Bentayga found homes (-26.6%).  In terms of profitability, the last four years have been the best in terms of Bentley’s history by far.  In fact, Bentley has made more money in the last 4 years than it did in the 100 years before.  Recent profitability has been driven by personalization with over 70% of Bentleys now including bespoke (high margin) options.

Future Models: The core Bentley portfolio of luxury sedan (Flying Spur), grand tourer (Continental GT), and luxury SUV (Bentayga) has been set now for the better part of a decade.  It looks unlikely to change at this point as Bentley seems more focused on expanding the range of different options in terms of engine and trim (example: Bentayga S, Bentayga EWB) within each one of these model series.

Leadership: In early 2024, after six years as CEO of Bentley, Adrian Hallmark departed and was replaced by long time Volkswagen AG insider Frank-Steffen Walliser.  Walliser is an engineer by training and one of his key challenges will be to restore Bentleys sales growth & profitability while navigating the complex powertrain matrix of ICE, Hybrid, & EV as it evolves over the next decade. 

Summary

Under Volkswagen AG ownership, Bentley has been allowed to first recover and then grow behind consistent investment.  In 2022, Bentley sales and profitability peaked, and the last two years have been more challenging.  As per management comments, it is the Chinese market has been a major challenge for Bentley for the last 2 years.  The hope and plan is that demand in China will level out in 2025.  Bentley has invested heavily in both the recent Continental GT & Flying Spur relaunches and will be looking to regain sales momentum behind them in 2025.  An updated Bentayga is going to be needed soon and this will require additional investment.  With an estimated 30% of Bentley’s sales in the US, how new CEO Walliser navigates the twin challenges of tariffs and an increasingly unsettled economic outlook will play a key role in his success.

 

Note: I do not, and have never owned, Volkswagen AG shares.