Overview
- Full-year 2025 results showed group EBIT of €5.8 billion (down 57%), net profit of about €5.3 billion, and revenue of €132.2 billion (down ~9%), with shares falling roughly 4.5%–5.3% in early trading.
- Mercedes booked about €1 billion in U.S. tariff costs for 2025, and the CFO said the charge will rise in 2026 with a full-year impact.
- China remained the key drag as sales volumes fell about 19% to the lowest since 2016, with management cautioning that 2026 volumes there will stay below 2025 levels.
- For 2026, Mercedes guides the cars division to a 3%–5% margin and targets 8%–10% in the medium term through deeper cost cuts and more than 40 model launches over three years.
- The strategy to regain momentum in China includes faster localisation and AI-led features such as a ByteDance-powered voice assistant and assisted driving with Momenta, while order books extend well into the second half of 2026 with production on three shifts.