Mercedes-Benz Group (MBG) investor relations material

Strategic highlights

• Launched the largest product and technology program in company history, including new electric and high-performance models.

• Advanced MB.OS software platform, AI integration, and autonomous driving features across all segments.

• Focused on cost reduction, targeting >10% production and fixed cost cuts by 2027, and achieving BEV/ICE margin parity by decade's end.

• Strengthened global footprint with expanded local production in the US, Europe, and China, and optimized capacity to 2.0–2.2 million units.

• Maintained attractive shareholder returns through dividends and share buybacks, with a payout of 100% of free cash flow.

Financial and operational performance

• Q2 2026 Group EBIT reached EUR 1.5 bn, impacted by China investment valuations; Free Cash Flow (industrial business) at EUR 1.1 bn.

• Cars RoS adjusted at 4.0% (within 3–5% guidance); Vans RoS adjusted at 10.2% (upper end of 8–10% guidance); FS ROE adjusted at 15.3% (above 10–12% guidance).

• BEV car sales grew 51% YoY, with strong momentum in Europe (+87%), while total car sales declined 8% YoY, but ex-China sales rose 2%.

• Net industrial liquidity remained strong at EUR 30.4 bn after significant cash returns to shareholders.

• Group revenue and car sales guidance for FY 2026 updated to slightly below prior year, while EBIT guidance is significantly above.

Product and technology innovation

• Rolled out new electric and hybrid models across all segments, including the electric C-Class and VLE van.

• MB.OS platform enables chip-to-cloud architecture, AI-powered features, and continuous OTA updates.

• Introduced advanced driver assistance and autonomous driving, with Point-to-Point assistance launching in Germany by end of 2026.

• Achieved significant battery cost reductions (-30%) and targeted further cost savings through modular architectures.

• Vans business launched new modular architectures (VAN.EA, VAN.CA) and began series production of the all-electric VLE.