Mercedes-Benz Group (MBG) Q4 2025 earnings summary

Executive summary

• 2025 marked a year of transformation with the largest product launch offensive in company history, including over 40 new models such as the CLA, GLC, and GLB, and the rollout of the Mercedes-Benz Operating System (MB.OS) with advanced AI and automated driving features.

• Adjusted EBIT reached €8.2 billion, free cash flow was €5.4 billion, and net industrial liquidity exceeded €31.4 billion, reflecting strong financial resilience despite global tariffs, FX headwinds, and competition in China.

• Sales reductions were mainly due to competitive pressures in China and tactical wholesale management in the U.S., while Top-End vehicles maintained a 15% share of sales and BEV volumes increased.

• The company streamlined its organization, rejuvenated management, and invested heavily in next-generation technology platforms, maintaining strict cost discipline and operational efficiencies.

• Total shareholder return exceeded 20% for the year, with a proposed dividend of €3.50 per share.

Financial highlights

• Group revenue declined 9.2% year-over-year to €132.2 billion; adjusted EBIT fell 39.9% to €8.2 billion; reported EBIT was €5.8 billion due to restructuring and legal charges.

• Free cash flow from the industrial business was €5.4 billion, down 40.8% year-over-year; net industrial liquidity at year-end was €32.2 billion.

• Cars segment: €4.8 billion adjusted EBIT, 5% return on sales, with efficiency gains offsetting macro headwinds and FX/tariff impacts.

• Vans segment: 359,000 units sold, 10.2% adjusted return on sales, €1.8 billion adjusted EBIT.

• Financial Services: €1.3 billion adjusted EBIT, 9.7% adjusted return on equity, with improved margins and 10% OpEx savings.

• Earnings per share dropped 48% to €5.34.

Outlook and guidance

• 2026 guidance: Group revenue expected at prior year level (~€130 billion); reported EBIT significantly above 2025 due to absence of restructuring charges; free cash flow expected slightly below 2025.

• Cars: Global sales to remain stable, with growth outside China offsetting a cautious outlook for China; Top-End mix targeted at 14%-15%, xEV share at 21%-23%.

• Cars adjusted return on sales guided at 3%-5% for 2026; Vans at 8%-10%; Financial Services ROE at 10%-12%.

• Investment peak for cars in 2025 (€12.7 billion), for vans in 2026; investments to decline thereafter.

• Additional cash proceeds targeted from M&A divestments.