Mercedes-Benz Group (MBG) Q4 2024 (Media) earnings summary

Executive summary

• Management projects a significant decline in group EBIT for the coming year, driven by lower volumes and cautious market outlooks for both passenger cars and vans.

• Solid financial results in 2024 despite a challenging environment, with €9.2 billion free cash flow from industrial business and €13.6 billion Group EBIT, both down year-over-year.

• Launched 'Next Level Performance' plan to return Mercedes-Benz Cars to double-digit adjusted ROS and enhance competitiveness through cost reductions and product launches.

• Cost-saving initiatives are underway, targeting all cost types, including HR, with restructuring to be handled responsibly.

• Production capacity is being shifted to Hungary for cost competitiveness, while German plants will remain operational with adapted roles.

Financial highlights

• Group revenue for 2024 was €145.6 billion, down 4.5% year-over-year; Group EBIT fell 30.8% to €13.6 billion.

• EBIT is expected to decrease significantly below the prior level due to lower volumes and reduced return on sales (ROS) in both cars and vans.

• Net profit declined 28.4% to €10.4 billion; EPS dropped 24.3% to €10.19.

• Free cash flow from industrial business was €9.2 billion, down 19.1% year-over-year.

• Cost reductions are planned across all functions globally, with a €5 billion target referenced against internal planning.

Outlook and guidance

• Group revenue for 2025 expected slightly below 2024; Group EBIT and free cash flow from industrial business expected significantly below 2024.

• A cautious outlook for 2025 is presented, with expectations of lower volumes and profitability, but optimism for renewed growth from 2025–2027 as new models are launched.

• Mercedes-Benz Cars and Vans unit sales and adjusted ROS both guided slightly below prior year; XEV share in Cars expected to rise to 20–22%.

• Guidance includes the impact of regulatory CO2 pooling costs, especially for vans, and anticipates competitive challenges in China and the US.

• Mercedes-Benz Mobility ROE guided at 8–9%, down from 8.7% in 2024.