Mercedes-Benz Q1 2026 earnings: profit drops as China sales fall

Mercedes-Benz reported net earlier involvement and taxes of €1.9 cardinal ($2.23 billion) successful the archetypal 4th of 2026, a 17% diminution from the aforesaid play a twelvemonth earlier. The driblet was smaller than the 29% autumn analysts polled by Visible Alpha had projected, according to Reuters.

Revenue fell 4.9% connected the twelvemonth to €31.60 billion, the institution said. The carmaking unit's adjusted operating borderline compressed to 4.1%, down from 7.3% successful the prior-year period, a effect that nevertheless came successful wrong the company's full-year guidance scope of 3% to 5%.

Sales fell 6% globally successful the archetypal quarter. In China, the company's largest azygous market, income dropped 27% arsenic home brands encroached connected the premium conception and request remained weak. Mercedes attributed the China weakness to a operation of factors, saying the marketplace faced "intense contention and subdued demand" during "a modulation twelvemonth marked by exemplary changeovers crossed the portfolio."

Average selling prices per exemplary declined astir 7.7% to €66,700 successful the quarter, the institution said.

CFO Harald Wilhelm pointed to beardown request for caller products and what helium described arsenic "healthy bid books" arsenic indicators of improving momentum successful the 2nd fractional of the year. A revamped S-Class sedan, a large contributor to the company's bottommost line, is acceptable to debut successful the 2nd half.

For the afloat year, Mercedes expressed assurance that operating nett would travel successful "significantly above" 2025 levels, a examination it said would mostly beryllium shaped by the restructuring charges the institution booked past year. Revenue is expected to beryllium astir level connected the year. The company's mid-term people for its halfway carmaking borderline is 8% to 10%.

According to Reuters, the duties introduced nether the Trump medication are projected to shave 1.5 percent points disconnected the carmaker's halfway automotive borderline successful 2026. In the archetypal quarter, however, the tariff resistance was cushioned by an accounting payment arising from Mercedes' exertion for a tariff refund successful the aftermath of a Supreme Court ruling past year. Mercedes took a $1.2 cardinal deed from tariffs past year, according to Bloomberg.

Raw worldly costs are expected to emergence further owed to the Middle East conflict, Wilhelm said. The company's full-year nett forecast assumes the struggle volition beryllium resolved soon, helium added.

As portion of its cost-reduction effort, the institution has acceptable a people of pulling backmost full manufacturing output to astir 2.2 cardinal vehicles, a simplification of much than 10%. German plants, which make adjacent to fractional of the company's full production, are covered by national agreements shielding workers from layoffs done 2035, leaving the institution small country to chopped domestically. According to Bloomberg, the workforce adjustments successful Germany are truthful being handled done earthy attrition, with the bulk of capableness cuts directed toward operations successful different countries.

Mercedes banal roseate astir 1.1% pursuing the results.