Mercedes-Benz Group (MBG) Corporate presentation summary

Strategic highlights and product innovation

• Executing the largest product and technology launch in company history, including new AMG GT 4-Door Coupé and electric C-Class production ramp-up.

• Strong focus on electrification, with BEV car sales up 51% YoY and significant growth in Europe (+87%).

• Next-generation MB Tech stack, including MB.OS, AI integration, and advanced driver assistance features, rolling out across all segments.

• Security & Defence established as a strategic development field, with first MoU signed.

• Productivity initiatives and industrial footprint optimization, including plant expansion in Hungary and cost reduction programs.

Financial performance and guidance

• Group EBIT at EUR 1.5 bn, impacted by China investment valuation adjustments; 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).

• Revenue slightly down YoY, but EBIT up 22% and EPS up 20%; net industrial liquidity remains strong.

• Guidance for 2026: Cars and Vans RoS adj. confirmed, FS ROE adj. raised to 12–14%, Group EBIT and FCF (IB) confirmed.

• Shareholder returns enhanced by EUR 2.0 bn share buybacks and Daimler Truck share sell-down generating EUR 0.4 bn.

Operational resilience and cost efficiency

• Production, material, and fixed cost reductions targeted at >10%, >8%, and 10% respectively by 2027 vs. 2024.

• BEV/ICE margin parity targeted by end of decade, with battery costs reduced by 30% for new platforms.

• Global production capacity right-sized to 2.0–2.2m units mid-term, with increased localization in USA, Europe, and China.

• Strong focus on local-for-local sourcing, supply chain resilience, and leveraging best-cost countries.

• Financial flexibility supported by diversified funding, strong liquidity, and a well-balanced bond maturity profile.