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 occasions forward, following a yr marred by intense competitors from Chinese language rivals and world 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 yr in the past. The consequence was considerably decrease than analyst expectations of 6.6 billion euros.
Mercedes-Benz Group mentioned its earnings have been formed by overseas change 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 steerage, due to our sharp deal with effectivity, velocity, and adaptability,” Ola Källenius, chairman of the board of administration at Mercedes-Benz Group, mentioned in an announcement.
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 have been off round 1% throughout afternoon offers, paring a few of its earlier losses. The inventory is down roughly 7% thus far this yr.
Wanting forward, Mercedes-Benz Group mentioned it deliberate additional price cuts in 2026 in addition to a flurry of product launches, concentrating on an adjusted return on gross sales for Mercedes-Benz Automobiles of three% to five%, down from the 5% development it reported in 2025.
The corporate additionally mentioned it expects revenues to come back 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 predicted to be “considerably above” the earlier yr’s stage.
Group free money move of the agency’s industrial enterprise is seen barely beneath the 2025 stage of 5.4 billion euros.
