Mercedes-Benz Reports Sharp Profit Decline Amid Tariffs and Weak China Sales
Mercedes-Benz Group AG saw profits plunge 57% in 2025, battered by $1.2 billion in tariffs and sluggish demand in China. Revenue fell 9.2% to €132.2 billion, with net profit nearly halving to €5.3 billion. The automaker's earnings per share collapsed to €5.34 from €10.19, while industrial free cash Flow dwindled to €5.4 billion from €9.2 billion.
Despite the downturn, results met company guidance. Adjusted EBIT landed at €8.2 billion—a stark drop from 2024's €13.7 billion. Shareholders retained a 20%+ total return, buoyed by a proposed €3.50 dividend payout. Net liquidity edged up to €32.2 billion, demonstrating resilience in the face of macroeconomic headwinds.
The cars division absorbed the heaviest blows. Mercedes Cars' adjusted EBIT nearly halved to €4.8 billion as revenue slid 10.5%. Unit sales dropped 9.2%, with battery EV deliveries falling 8.8%. The silver lining: electrified vehicles now comprise 20.5% of total sales, up from 18.5% in 2024.
