German companies in the DAX index posted a record profit of 52.6 billion euros in the second quarter of 2026, despite cutting more than 40,000 jobs. Growth was driven by the defense and technology sectors, while the automotive industry faced a crisis.
This was reported by Economichna Pravda citing Deutsche Welle, according to the portal PromPolitInform.
According to research firm EY, as of June 30, 2026, the total number of employees at the 37 largest German publicly traded companies fell to 3.49 million. The workforce has shrunk by 41,000 specialists, or 1.2 percent, over the past year.
Operating profit (EBIT) of these companies increased by nearly 16 percent to 52.6 billion euros. This is the highest figure for a second quarter on record, exceeding the previous 2024 record by 10 percent.
Defense and technology sectors show growth
The defense industry, along with companies specializing in artificial intelligence and data center infrastructure, had a significant impact on the positive dynamics. Specifically, Rheinmetall continued to actively recruit personnel against the backdrop of general layoff trends.
The highest profits for the reporting period were posted by Deutsche Telekom (6.9 billion euros), Allianz (4.9 billion), Volkswagen (3.5 billion), and Siemens (3.4 billion). The combined turnover of DAX index companies reached 463 billion euros, demonstrating an increase of 4.6 percent.
German automotive industry continues to lose ground
In the second quarter, German automakers recorded a 12 percent drop in operating profit and a 1.2 percent decline in turnover. BMW was hit hardest, with profits falling by 39 percent, while Volkswagen and Daimler Truck saw a 9 percent decline each.
“Demand in the German domestic market remains weak; profit and turnover growth is recorded mainly abroad,” said EY board chairman Henrik Ahlers. He added that the situation in the industrial sector remains fragile, and the crisis in the automotive sector precludes any talk of a rapid recovery.
Photo: Economichna Pravda
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