Mercedes-Benz Group
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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.
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Q4 2025 (Q&A) earnings summary12 Feb, 2026

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.

Breakdown of 2025 cost savings by category
MB.OS and ADAS rollout strategy across segments
Rationale for 2026 Capex and R&D investment decline
China EV profitability: How to overcome price pressure?
What is the net impact of 4% efficiency gain on margin?
Kecskemét investment drivers vs. German competitiveness?
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Frequently asked questions

Mercedes-Benz Group AG, formerly Daimler AG, operates as an automotive company in Germany and internationally. The company develops, manufactures, and sells passenger cars comprising premium and luxury vehicles of the Mercedes-Benz brand, including the Mercedes-AMG, G-Class, Mercedes-Maybach, and Mercedes-EQ brands, as well as small cars under the smart brand; ecosystem of Mercedes-Benz under the Mercedes me brand; and vans under the Mercedes-Benz and Freightliner brands, as well as related spare parts and accessories. It also provides financing and leasing packages for end-customers and dealers; automotive insurance brokerage and banking services; car subscription and car rental, and fleet management, as well as digital services for charging and payment; and mobility services. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.

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