Quick Takeaways
- Mercedes-Benz Financial Results 2025 reflect revenue pressure and sharp EBIT contraction amid tariffs and China slowdown.
- Group projects stronger EBIT in 2026 supported by restructuring normalization and cost efficiency measures.
On February 12, Mercedes-Benz Financial Results 2025 were announced, highlighting a challenging year shaped by subdued global demand, tariff-related cost burdens, and intensified pricing pressure across major markets. Mercedes-Benz Group reported revenue of EUR 132.2 billion, marking a 9.2% year-on-year contraction. EBIT declined significantly by 57.2% to EUR 5.8 billion, while adjusted EBIT reached EUR 8.2 billion, down 39.9%. Net profit decreased 48.8% to EUR 5.3 billion. Free cash flow from the industrial business totaled EUR 5.4 billion, representing a 40.8% reduction compared with the prior year, yet remaining solidly positive in a volatile operating environment.
The decline in Mercedes-Benz Group revenue 2025 was primarily attributable to lower wholesale volumes, particularly in China, combined with adverse foreign exchange movements and increased tariff exposure in selected trade corridors. Volume deleverage had a pronounced effect on fixed-cost absorption, directly compressing operating margins. Nevertheless, disciplined cost control and structural efficiency programs mitigated part of the earnings impact.
The divergence between reported and adjusted EBIT reflects restructuring expenses and operational normalization initiatives undertaken to recalibrate capacity, streamline processes, and enhance long-term competitiveness. While these measures weighed on near-term profitability, they are designed to structurally lower the breakeven point and strengthen margin resilience across cycles.
Free cash flow remained positive despite weaker earnings, underscoring robust working capital management and capital expenditure prioritization. Management highlighted that restructuring charges were a major driver of the 2025 earnings contraction, positioning the Group for improved operational leverage entering 2026.
Mercedes-Benz Cars sales 2025 decreased 9.2% year-on-year to 1,801,291 units. Divisional revenue declined 10.5% to EUR 96.4 billion. EBIT fell 57.9% to EUR 3.6 billion, while adjusted EBIT stood at EUR 4.8 billion, down 45.0%. Adjusted return on sales narrowed to 5.0%, compared with 8.1% in 2024. Excluding tariff impacts, adjusted return on sales improved to 6.1%, indicating that external trade factors materially influenced margin compression.
Mercedes-Benz xEV deliveries edged up 0.3% to 368,700 units, representing 20.5% of total vehicle sales. However, Mercedes-Benz BEV sales declined 8.8% to 168,823 units, reflecting uneven demand patterns across regions and heightened competitive pricing dynamics in the electric vehicle segment. While electrified vehicles increased their penetration within the overall sales mix, absolute BEV volumes softened, highlighting short-term demand volatility despite long-term electrification commitments.
These structural savings partially offset the negative effects of lower volumes, pricing adjustments, and macroeconomic headwinds. The program remains a central lever in restoring sustainable margin levels within the passenger car division.
Mercedes-Benz Vans sales 2025 reached 359,136 units, a decline of 11.5% year-on-year. Revenue fell 11.2% to EUR 17.1 billion, while EBIT decreased 55.4% to EUR 1.3 billion. Adjusted EBIT declined 37.9% to EUR 1.8 billion.
Despite lower volumes, adjusted return on sales remained resilient at 10.2%, slightly surpassing guidance and maintaining a structurally double-digit margin profile in the commercial vehicle segment.
This sharp growth in electric van volumes signals accelerating electrification adoption in commercial applications, particularly in urban logistics and regulated emission zones.
For 2026, Mercedes-Benz expects Group revenue to remain broadly in line with prior-year levels, while Group EBIT is projected to increase substantially due to the absence of major restructuring charges recognized in 2025. Free cash flow from the industrial business is anticipated to be slightly below 2025 levels, reflecting ongoing investment priorities and normalization of working capital effects.
Adjusted return on sales guidance stands at 3–5% for Mercedes-Benz Cars and 8–10% for Mercedes-Benz Vans. Over the medium term, the passenger car division targets annual volumes of approximately 2 million units, supported by a greater than 15% expansion in Top-End Vehicle sales and a doubling of the xEV share within the product mix.
Production capacity is being strategically realigned, with global output capability calibrated to around 2.2 million units by 2028.
This objective will be achieved through lean manufacturing principles, footprint optimization, and sustained fixed-cost discipline. Through synchronized product renewal cycles and operational restructuring, Mercedes-Benz is positioning itself to restore an adjusted return on sales in the 8–10% range over the next business cycle.
Mercedes-Benz Financial Results 2025: Group Performance Overview
The decline in Mercedes-Benz Group revenue 2025 was primarily attributable to lower wholesale volumes, particularly in China, combined with adverse foreign exchange movements and increased tariff exposure in selected trade corridors. Volume deleverage had a pronounced effect on fixed-cost absorption, directly compressing operating margins. Nevertheless, disciplined cost control and structural efficiency programs mitigated part of the earnings impact.
The divergence between reported and adjusted EBIT reflects restructuring expenses and operational normalization initiatives undertaken to recalibrate capacity, streamline processes, and enhance long-term competitiveness. While these measures weighed on near-term profitability, they are designed to structurally lower the breakeven point and strengthen margin resilience across cycles.
Free cash flow remained positive despite weaker earnings, underscoring robust working capital management and capital expenditure prioritization. Management highlighted that restructuring charges were a major driver of the 2025 earnings contraction, positioning the Group for improved operational leverage entering 2026.
Mercedes-Benz Cars Sales 2025 and EV Mix
Mercedes-Benz Cars sales 2025 decreased 9.2% year-on-year to 1,801,291 units. Divisional revenue declined 10.5% to EUR 96.4 billion. EBIT fell 57.9% to EUR 3.6 billion, while adjusted EBIT stood at EUR 4.8 billion, down 45.0%. Adjusted return on sales narrowed to 5.0%, compared with 8.1% in 2024. Excluding tariff impacts, adjusted return on sales improved to 6.1%, indicating that external trade factors materially influenced margin compression.
| Metric | 2025 Performance | Year-on-Year Change |
|---|---|---|
| Sales Volume | 1,801,291 units | -9.2% |
| Revenue | EUR 96.4 billion | -10.5% |
| EBIT | EUR 3.6 billion | -57.9% |
| Adjusted EBIT | EUR 4.8 billion | -45.0% |
| Adjusted Return on Sales | 5.0% | Down from 8.1% (2024) |
Electric and xEV Performance Trends
Mercedes-Benz xEV deliveries edged up 0.3% to 368,700 units, representing 20.5% of total vehicle sales. However, Mercedes-Benz BEV sales declined 8.8% to 168,823 units, reflecting uneven demand patterns across regions and heightened competitive pricing dynamics in the electric vehicle segment. While electrified vehicles increased their penetration within the overall sales mix, absolute BEV volumes softened, highlighting short-term demand volatility despite long-term electrification commitments.
- Cost efficiencies under the Next Level Performance program contributed more than EUR 3.5 billion to EBIT.
These structural savings partially offset the negative effects of lower volumes, pricing adjustments, and macroeconomic headwinds. The program remains a central lever in restoring sustainable margin levels within the passenger car division.
Mercedes-Benz Vans Sales 2025 and Profitability
Mercedes-Benz Vans sales 2025 reached 359,136 units, a decline of 11.5% year-on-year. Revenue fell 11.2% to EUR 17.1 billion, while EBIT decreased 55.4% to EUR 1.3 billion. Adjusted EBIT declined 37.9% to EUR 1.8 billion.
Despite lower volumes, adjusted return on sales remained resilient at 10.2%, slightly surpassing guidance and maintaining a structurally double-digit margin profile in the commercial vehicle segment.
- BEV sales within the van segment increased 46.0% to 28,488 units.
This sharp growth in electric van volumes signals accelerating electrification adoption in commercial applications, particularly in urban logistics and regulated emission zones.
Mercedes-Benz 2026 Outlook and Medium-Term Strategy
For 2026, Mercedes-Benz expects Group revenue to remain broadly in line with prior-year levels, while Group EBIT is projected to increase substantially due to the absence of major restructuring charges recognized in 2025. Free cash flow from the industrial business is anticipated to be slightly below 2025 levels, reflecting ongoing investment priorities and normalization of working capital effects.
Adjusted return on sales guidance stands at 3–5% for Mercedes-Benz Cars and 8–10% for Mercedes-Benz Vans. Over the medium term, the passenger car division targets annual volumes of approximately 2 million units, supported by a greater than 15% expansion in Top-End Vehicle sales and a doubling of the xEV share within the product mix.
Production capacity is being strategically realigned, with global output capability calibrated to around 2.2 million units by 2028.
- The company aims to reduce production costs per unit by 10% from 2027 onward compared to 2024 levels.
This objective will be achieved through lean manufacturing principles, footprint optimization, and sustained fixed-cost discipline. Through synchronized product renewal cycles and operational restructuring, Mercedes-Benz is positioning itself to restore an adjusted return on sales in the 8–10% range over the next business cycle.
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