Advancing its product launch programme, Mercedes-Benz Cars performs in line with guidance; strong earnings at Financial Services and Vans; full-year outlook confirmed

• Mercedes-Benz Cars: adjusted return on sales of 4.0% within guidance; reported return on sales reflecting intensified market environment in China and macroeconomic headwinds
• Product launch momentum builds: Mercedes-Benz Cars BEV sales increased by 51% year-on-year, including growth of 87% in Europe
• Benchmark performance at Mercedes-Benz Vans: adjusted return on sales of 10.2% at the upper end of the guidance range; all-electric van sales rose by 46% year-on-year
• Strong Mercedes-Benz Financial Services results: adjusted EBIT increased by 70% year-on-year to €492 million, driven by higher portfolio margins and lower operating expenses; adjusted return on equity increased significantly to 15.3%
• Mercedes-Benz Group: EBIT increased to €1.5 billion; consistent cost discipline supported earnings; net liquidity remained strong at €30.4 billion at the end of the quarter; free cash flow of the industrial business amounted to €1.1 billion in Q2
• Full-year outlook: Guidance for Mercedes-Benz Cars adjusted return on sales confirmed; xEV share at Mercedes-Benz Cars now expected at 23% to 25%; Mercedes-Benz Cars unit sales and Group revenue now anticipated slightly below prior-year levels; guidance for adjusted return on equity for Financial Services increased to 12% to 14%; guidance for free cash flow of the industrial business, including mergers and acquisitions, confirmed

  
  

“Despite a demanding market environment, we remained on track in the second quarter while continuing to advance our product launch programme. Customer response to our new models is strong, with Mercedes-Benz Cars BEV sales up 51% and BEV order intake in Europe more than doubling in the quarter. In the second half, we will focus on bringing more new models to customers while further improving our cost position and productivity.”

Ola Källenius, Chairman of the Board of Management of Mercedes-Benz Group AG

Mercedes-Benz Group AG (ticker symbol: MBG) reported revenue of €32.1 billion in the second quarter (Q2 2025: €33.2 billion) and Group EBIT of €1.5 billion (Q2 2025: €1.3 billion), while continuing to execute its largest-ever product launch programme and further improving efficiency and productivity.

Group EBIT was supported by strong earnings at Mercedes-Benz Financial Services, Mercedes-Benz Vans and higher contributions from the Group reconciliation, partly offset by lower earnings at Mercedes-Benz Cars. Group EBIT also included a positive effect of €131 million related to the planned sale of Athlon Group. Adjusted Group earnings before interest and taxes reached €2.3 billion (Q2 2025: €2.0 billion).

Mercedes-Benz made further progress with its Next Level Performance (NLP) programme, with cost measures continuing to support earnings in the second quarter. At Group level, general administrative expenses decreased by 14%, and research and development expenditure declined by 12%, following last year’s investment peak for the Mercedes-Benz Cars product launch plan. At Mercedes-Benz Cars, cost of sales declined by 7%. Efficiency measures also supported the cost position at Mercedes-Benz Vans and Mercedes-Benz Financial Services. Building on a reduction in fixed costs of approximately 25% since 2019, the company began further intensifying its global productivity measures in June 2026, with a particular focus on its German locations. 

Free cash flow of the industrial business amounted to €1.1 billion in the second quarter (Q2 2025: €1.9 billion), supported by proceeds of €417 million from the partial sale of the Daimler Truck shareholding. In the first half of 2026, free cash flow of the industrial business amounted to €3.0 billion (H1 2025: €4.2 billion), reflecting an outflow of approximately €1.1 billion for severance payments in connection with the Next Level Performance programme. 

The company maintained a solid financial position amid macroeconomic headwinds and ongoing model ramp-ups. Following dividend payments and share repurchases totalling €5 billion in the first half of the year, net liquidity of the industrial business remained strong at €30.4 billion, while the funding ratio of the pension plans improved to 117% from 113% at year-end 2025.

Mercedes-Benz Cars

Mercedes-Benz Cars posted adjusted EBIT of €909 million in the second quarter (Q2 2025: €1,228 million), corresponding to an adjusted return on sales (RoS) of 4.0% (Q2 2025: 5.1%) and thus within the full-year guidance range of 3% to 5%. The year-on-year development reflected intensified market pressure, especially in China, a less favourable model mix, product lifecycle measures and launch-campaign-related costs, partly offset by continued efficiency gains.

Reported EBIT amounted to €49 million (Q2 2025: €783 million) and included impairments of €704 million in connection with Chinese equity-method investments. The effects did not result in a corresponding cash outflow in the second quarter and were excluded from adjusted EBIT. The Chinese market and customers in China remain of high strategic importance to Mercedes-Benz. 

Mercedes-Benz continued to advance its largest-ever model launch programme, comprising more than 40 new models between 2025 and 2027. Mercedes-Benz Cars BEV sales increased by 51% year-on-year to 52,852 units in the second quarter (Q2 2025: 35,027 units), driven by growth of 87% in Europe. Overall, Mercedes-Benz Cars sold 417,765 vehicles in the second quarter (Q2 2025: 453,674 vehicles). Sales increased by 4% in Europe and by 10% in the United States. This partly offset a 30% sales decline in China, where intense competition, subdued demand and the portfolio-wide model changeover continued to affect sales. Excluding China, global car sales increased by 2% year-on-year. 

The Top-End segment accounted for 13.9% of global sales in the second quarter. The share reached 14.3% in the first half of 2026, within the full-year target range of 14% to 15%.

The ramp-up of recently launched models is increasingly translating into sales, with the all-new CLA and GLB making a tangible contribution and high order volumes for the all-new electric GLC expected to support further deliveries in the second half of the year. The new S-Class has made a successful start in Europe, with more regions to follow in the coming months. Order books also opened for a broad range of further models, including the all-new electric C-Class, the new GLE and GLS and the Mercedes-AMG GLE 53 and GLC 53 model families. Further product highlights included the world premiere of the all-new Mercedes-AMG GT 4-Door Coupé variants and the debuts of the new Mercedes-Maybach GLS as well as the Mercedes-AMG GLE 63 S 4MATIC+ as SUV and Coupé and the Mercedes-AMG GLS 63 4MATIC+ SUV, all powered by new V8 engines. The model launch plan will continue with the world premiere and start of sales of the all-new electric GLA at the end of July. Following China and the United States, Mercedes-Benz is also targeting the introduction of point-to-point assisted driving in the first German cities by the end of 2026.

In July, Mercedes-Benz marked the expansion of its Kecskemét plant in Hungary. Investments of around €1 billion have doubled the site’s footprint and increased its production flexibility for electrified combustion-engine, plug-in hybrid and all-electric models. The plant is producing the all-new electric C-Class, the first all-electric Core model built at the site.

Mercedes-Benz Vans

With an adjusted RoS of 10.2%, Mercedes-Benz Vans once again achieved double-digit results in the second quarter of 2026. Adjusted EBIT increased by 3% to €454 million compared with the second quarter of 2025, driven by higher sales outside of China, positive contributions from aftersales and the leasing portfolio. At the same time, the results reflect net pricing pressure and product mix effects as well as the ramp-up efforts for the new Van Architecture. Mercedes-Benz Vans is currently executing its largest product investment programme in its history. 

Mercedes-Benz Vans recorded second-quarter sales of 94,075 units, reflecting stable overall global demand with a strong performance in North America (+23%) and Europe (+5%) along with significant sales growth for eVans (+46%) compared to the second quarter of 2025.

In June, Mercedes-Benz Vans started series production of the all-new electric VLE at its Spanish Vitoria plant. It is the first vehicle based on the newly developed, modular and drivetrain-flexible Van Architecture. It serves as a perfect companion for a wide range of use cases – from a flexible solution for families and leisure-oriented customers to exclusive shuttle services.

Mercedes-Benz Financial Services

Mercedes-Benz Financial Services delivered a strong performance in the second quarter, with adjusted EBIT rising 70% to €492 million, driven by higher margins and improved cost efficiency. The adjusted return on equity (RoE) increased to 15.3%, significantly above the previous full-year guidance range of 10% to 12%. Total contract volume stood at €131.6 billion as of 30 June, up 2.2% compared with year-end 2025. The increase was driven by positive exchange-rate effects and growth in the United States. New business reached €26.8 billion in the first half of 2026.

Strategic development area: Mercedes-Benz vehicles for security and defense purposes

Mercedes-Benz plans to further intensify the company’s activities in the security and defense sector, reflecting its broader responsibility in a changing security environment. Building on more than 45 years of experience with modifiable vehicles for security, rescue and defense applications – including the Mercedes-Benz G-Class, Sprinter and Vito – the company provides reliable base vehicles and chassis for specific operational requirements. 

As a first step, Mercedes-Benz signed a memorandum of understanding with Munich-based TYTAN to explore potential cooperation in the area of vehicle-based defense applications, including a G-Class-based system for drone defense and operations as well as a Sprinter-based mobile drone carrier and command unit.

Outlook

Reflecting first-half performance and the evolving market environment, Mercedes-Benz has updated selected elements of its 2026 guidance.

Mercedes-Benz Financial Services now expects a higher adjusted return on equity of 12% to 14% (previously 10% to 12%), mainly reflecting an improved portfolio margin.

At Mercedes-Benz Cars, the share of electrified vehicles (xEV) is now expected to reach 23% to 25% (previously 21% to 23%), supported by the continued ramp-up of new all-electric (BEV) models in the second half of 2026. At the same time, in light of the continued challenging market environment in China, overall Mercedes-Benz Cars unit sales are now expected to come in slightly below the prior-year level (previously “on the same level”). Reflecting this, Group revenue is now also anticipated to be slightly below the previous year’s level (previously “at the prior-year level”).

Other forecast statements provided in the 2025 Annual Report remain valid.

* in millions of €

* in millions of €

* in millions of €

* in millions of € 
** Year-end figure

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

¹ The specified values were determined in accordance with the prescribed measurement procedure WLTP (Worldwide harmonized Light-duty vehicles Test Procedures). The energy consumption and CO₂ emissions of a passenger car depend not only on the efficient utilisation of fuel or the respective energy carrier by the car, but also on the driving style and other non-technical factors.

Link to the Q2 2026 sales press release

Link to the Q2 2026 results and reports

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 constant innovation and to creating the world’s most desirable cars for customers. This ambition has driven every innovation – from the world’s first automobile in 1886 to the biggest product launch programme in the company’s history that is currently underway. 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 runs 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.

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