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Mercedes-Benz Group (MBG) investor relations material
Mercedes-Benz Group Q4 2025 (Q&A) earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Management reaffirmed a focus on profitable growth, balancing margin ambitions with volume expansion, especially in key markets like China and the US.
2025 results were within expectations and guidance, with revenues of €132.2 billion and adjusted EBIT of €8.2 billion, despite global tariffs, FX headwinds, and competition in China, mitigated by over €3.5 billion in cost savings at Mercedes-Benz Cars.
Free cash flow from the industrial business was €5.4 billion, and total shareholder return exceeded 20% for the year.
Major product launches included the all-new CLA, GLB, and GLC, with strong market feedback and high demand, driving a sequential uplift in BEV volumes.
The company is navigating significant market shifts, particularly in China, with new product launches and localization strategies to address evolving consumer preferences and competitive pressures.
Financial highlights
Group revenue declined 9.2% year-over-year to €132.2 billion; adjusted EBIT fell 39.9% to €8.2 billion.
Guidance for 2026 car return on sales is 3%-5%, with the actual outcome dependent on commodity prices, FX, and China market dynamics.
Tariff impacts are significant, with a €1 billion effect in 2025, rising in 2026 due to a full-year impact.
Underlying industrial cash flow is expected to exceed €4 billion, with additional M&A inflows potentially above €2 billion.
Shareholder returns for the year are guided at €6 billion, including dividends and buybacks.
Outlook and guidance
2026 revenue expected at prior-year level; Group EBIT seen significantly above 2025 due to prior-year restructuring charges.
Free cash flow of the industrial business expected slightly below 2025; adjusted RoS guidance for Cars at 3-5%, Vans at 8-10%, and Financial Services ROE at 10-12%.
Midterm ambitions include growing US sales from 300,000 to 400,000 units and regaining market share through new products and increased localization.
China sales are expected to remain below 2025 levels in 2026, with a recovery anticipated in H2 2026 and beyond as refreshed models launch.
Margin improvement is targeted through efficiency gains, with a 4 percentage point contribution from cost measures, partially offsetting headwinds.
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