The Mercedes star, the model brand of the car producer Mercedes-Benz, rotates on a constructing of a Mercedes-Benz automotive dealership.
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German luxurious automotive producer Mercedes-Benz Group on Thursday reported a steep drop in full-year revenue and warned of difficult instances forward, following a 12 months marred by intense competitors from Chinese language rivals and international tariff prices.
The automaker posted full-year working revenue of 5.8 billion euros ($6.9 billion) in 2025, reflecting a 57% drop from a 12 months in the past. The end result was considerably decrease than analyst expectations of 6.6 billion euros.
Mercedes-Benz Group mentioned its earnings had been formed by international alternate headwinds and competitors in China, alongside a reported 1 billion euro ($1.2 billion) hit in tariff prices.
“Amid a dynamic market setting, our monetary outcomes remained inside our steering, because of our sharp give attention to effectivity, pace, and adaptability,” Ola Källenius, chairman of the board of administration at Mercedes-Benz Group, mentioned in a press release.
The outcomes come as European automotive giants face a mess of challenges, from rising manufacturing prices and provide chain disruptions to regulatory pressures and a bumpy electrical car transition.
Shares of the Munich-listed firm fell 4% throughout morning offers, paring a few of its earlier losses. The inventory is down roughly 7% to this point this 12 months.
Shares of Mercedes-Benz Group to this point this 12 months.
Trying forward, Mercedes-Benz Group mentioned it deliberate additional value cuts in 2026 in addition to a flurry of product launches, concentrating on an adjusted return on gross sales for Mercedes-Benz Vehicles of three% to five%, down from the 5% development it reported in 2025.
The corporate additionally mentioned it expects revenues to return in on the prior-year stage, after reporting revenues of 132.2 billion euros in 2025, whereas group earnings earlier than curiosity and taxes (EBIT) is anticipated to be “considerably above” the earlier 12 months’s stage.
Group free money stream of the agency’s industrial enterprise is seen barely beneath the 2025 stage of 5.4 billion euros.
