Mercedes-Benz: financial resilience and robust free cash flow in Q1, strong demand for new models

• Q1 Group revenue and EBIT in line with the Company’s expectations
• Mercedes‑Benz Cars: Strong order books and a focus on disciplined execution support the full‑year guidance; adjusted RoS of 4.1% within the guidance range
• Launch plan in full swing: strengthening the Entry‑, Core‑ and Top‑End segments with key BEV and high‑tech electrified combustion‑engine models
• Strong Top‑End performance and accelerating electrification: Top‑End share reached 14.7% of global sales, while BEV order intake in Europe more than doubled in Q1 (+107%)
• Mercedes‑Benz Vans with a very solid start while preparing for the product ramp-up: adjusted RoS of 10.1%, slightly above the full‑year guidance range
• Strong Mercedes‑Benz Financial Services performance: adjusted RoE of 13.3%, above the full‑year guidance range
• Financial discipline and execution: free cash flow of the industrial business of €1.86 billion, with net liquidity of the industrial business at €33.8 billion at Group level

Mercedes‑Benz Group AG (ticker symbol: MBG) delivered a solid operating performance in the first quarter, with key metrics in line with full‑year guidance, despite a challenging market environment marked by intense competition and geopolitical and trade-related headwinds.

Mercedes‑Benz’s largest-ever launch plan, spanning more than 40 new models between 2025 and 2027, is gaining momentum in its ramp‑up year. In 2026, Mercedes‑Benz introduced several key models, further strengthening its Top‑End portfolio – including the new S‑Class, EQS, GLS and Mercedes‑Maybach S‑Class – while also advancing its Core segment with the all‑new electric C‑Class and the new GLE and GLE Coupé. In the Entry segment, Mercedes‑Benz is renewing its line-up with the all-new CLA and GLB, offered in both electrified combustion-engine and all-electric variants. In addition, the brand is entering a new era in the Van segment with the unveiling of the all-new electric VLE.

“First-quarter results keep us on track to deliver on our full-year guidance. Strong demand for our new products and healthy order books position us well for improved momentum in the second half of the year. Going forward, we will remain firmly focused on disciplined execution, ensuring a well-coordinated rollout of our new models while maintaining tight cost control to sustain profitability.” 
Harald Wilhelm, Member of the Board of Management of Mercedes‑Benz Group AG, Finance & Controlling

Mercedes‑Benz Group

Group revenue reached €31.6 billion. Group earnings before interest and taxes (EBIT) totalled €1.9 billion, and free cash flow of the industrial business came in at €1.86 billion. In the first quarter of 2026, the share buy‑back programme accounted for an outflow of €469 million, while net liquidity of the industrial business still increased slightly to €33.8 billion at period-end, underlining the Company’s strong financial position and its ability to generate substantial cash even during a period of model transition and ramp‑up.

Mercedes‑Benz Cars

Mercedes‑Benz Cars posted adjusted EBIT of €933 million and an adjusted return on sales (RoS) of 4.1% in the first quarter, well within the full-year guidance range (3% to 5%), without any separate adjustment for tariff effects.

Mercedes‑Benz Cars sold 419,400 vehicles in the first quarter. Growth in Group sales in Europe (+7%) and the United States (+20%) partly offset declines in China. Excluding China, global car sales were up 5%. The Top‑End segment accounted for 14.7% of global sales, placing it at the upper end of the 2026 aim of 14% to 15%.

In China, intense competition and subdued demand continued to weigh on the market amid a transition year marked by model changeovers across the portfolio. Mercedes‑Benz Top‑End sales in China proved more resilient in the first quarter. With a 3% decline, Top‑End sales outperformed the broader market trend. Mercedes‑Benz maintained its leading position in the segment above RMB 1 million. At Auto China 2026, the company underlined China’s role as an innovation and technology hub and a key strategic market by unveiling the all-new electric GLC L as a long‑wheelbase model. The GLC L combines leading AI on MB.OS and is living proof of co-creation with Chinese customers, based on Mercedes‑Benz standards. It reflects the company’s comprehensive localisation strategy in cooperation with strong local partners and the acceleration of next-level localisation across the entire value chain. The model is part of a new generation of China‑fit vehicles, with further models entering the market in the second half of the year.

Battery‑electric vehicle (BEV) sales at Mercedes‑Benz Cars rose strongly in Europe in the first quarter of 2026, increasing by 34%, with Germany up 36%. Electrified vehicles (xEV) accounted for 41% of sales in Europe and 19% globally. This performance was supported by strong customer demand for the all-new electric CLA, GLC and GLB, with BEV order intake in Europe more than doubling (+107% year‑on‑year). Following their recent world premieres, the all-new electric C‑Class and the new EQS are set to further support Mercedes‑Benz’s all‑electric growth, with the EQS introducing steer‑by‑wire as the first series-production vehicle from a German car manufacturer to offer this technology.

Mercedes‑Benz Vans

Mercedes‑Benz Vans once again achieved double-digit adjusted RoS of 10.1% in the first quarter of 2026. Adjusted EBIT reached €415 million, primarily reflecting the market launch efforts for the new Van architecture as well as net pricing pressure and product mix effects, including the ramp‑down of the small Vans. This was partly offset by an improvement in variable costs, including selling expenses, as well as an increased leasing contribution. Mercedes‑Benz Vans sold 80,300 units in the first quarter of 2026, with stable development in the European market and eVans up by 29%.

In March, Mercedes‑Benz Vans presented the expansion of its offering in the privately positioned van segment with the introduction of the VLE that combines the best of two worlds: the driving comfort and handling of a limousine with the spaciousness, versatility and flexibility of an MPV.

Mercedes‑Benz Financial Services

Mercedes‑Benz Financial Services delivered a strong performance in the first quarter of 2026, with positive portfolio margin trends continuing from the previous year. Adjusted EBIT increased significantly by 44% to €413 million, driven by higher margins and improved cost efficiency. The adjusted return on equity (RoE) rose to 13.3%, exceeding the full‑year guidance range of 10 to 12%.

Total contract volume stood at €130.1 billion at the end of the first quarter, in line with year‑end 2025 levels. This was mainly driven by positive exchange rate effects and growth in the United States, partly offset by developments in China. New business declined by 4% to €13.1 billion, reflecting market conditions in the automotive sector and currency effects. At the same time, the cost of credit risk remained elevated, reflecting ongoing macroeconomic headwinds.

Outlook

For the full year, Mercedes‑Benz Group confirms its guidance, expecting Group revenue at the prior-year level and Group EBIT significantly above the prior‑year level, primarily reflecting restructuring charges incurred in the prior year. Free cash flow of the industrial business is expected to be slightly below the 2025 level.

The Company continues to closely monitor the geopolitical environment, including the conflict in the Middle East and its potential impact on consumer confidence.

Based on its clearly defined strategic ambitions, Mercedes‑Benz Cars targets medium‑term sales of around 2 million vehicles, with a Top‑End share of more than 15% and an xEV share of 40%.

* in millions of €

* in millions of €

* in millions of €

* in millions of € 
** at period end

 The comparative period for the percentage changes stated in this document is the respective prior‑year period, unless otherwise stated

 Link to the press information sales figures Q1 2026: media.mercedes‑benz.com/sales

Link to capital market presentation Q1 2026: group.mercedes‑benz.com/q1-2026

Further information about Mercedes‑Benz Group is available at: 
media.mercedes‑benz.com and group.mercedes‑benz.com

Mercedes‑Benz Anniversary Year “140 Years of Innovation”

Since Carl Benz filed the patent for the first automobile 140 years ago and Gottlieb Daimler built his motorised carriage shortly afterwards, Mercedes‑Benz has dedicated itself to constantly innovate and to create the world’s most desirable cars for customers. This ambition has driven every innovation – from the world's first automobile in 1886 to today's intelligent and safe electric vehicles, like the all-new GLC and the award-winning all-new CLA. With the new S‑Class, the company continues the biggest launch plan in its history. With its passion for performance and pioneering power, excellence and an unwavering commitment to customer service, the brand has consistently shaped the future of mobility. The result goes well beyond engineering achievement – it creates the unmistakable feeling that leads through everything Mercedes‑Benz does: Welcome home.

Mercedes‑Benz is celebrating 140 years of innovation by driving three new S‑Class saloons on a trans-continental journey to 140 locations worldwide. Each place highlights the brand’s technology, heritage, pioneering spirit and worldwide presence. Along the way customers, fans and colleagues will get to join in the celebrations - on an epic adventure that will run until October. Follow the “140 Years. 140 Places” drive across six continents on our “140 years of innovation | Mercedes‑Benz Media” special and via the Mercedes‑Benz Community.