Lamborghini's operating profit falls as geopolitical turmoil shakes luxury car sector

July 29 (Reuters) - Italian luxury sports carmaker Lamborghini reported an over 8% drop in its half-year operating profit on Wednesday, reflecting sector-wide fragility spurred by tariffs and the conflict in the Middle East.

The Volkswagen-owned luxury brand's operating profit was €395 million ($450 million) in the first half of 2026, versus €431 million a year ago. The operating margin fell to 22.7% from 26.5% in the same period last year.

"The negative impact of the increase in U.S. tariffs, introduced last year, and adverse exchange rate fluctuations affected the performance," Lamborghini's Chief Financial Officer Paolo Poma said.

The carmaker's revenue grew 7.4% to €1.74 billion, even as it delivered 4.6% fewer vehicles at 5,422, compared to a year earlier.

Lamborghini said in a statement that its revenue performance was better than that of its reference market, which contracted 7.7% over the period due to U.S. tariffs on imported cars and their parts, geopolitical instability and a weak Chinese market.

"Even amid growing volatility in global markets, Lamborghini has demonstrated its resilience, posting the highest revenue in its history," CEO Stephan Winkelmann told reporters.

Earlier in July, Volkswagen scrapped its sales growth target for 2026 after posting a 9.5% fall in its second-quarter operating profit.

($1 = 0.8775 euros)

(Reporting by Anna Uras, editing by Milla Nissi-Prussak)