The carmaker said earnings took a hit from weakness in China and U.S. import tariffs as it reported a drop in net profit.
Mercedes on Wednesday reported a 70% drop in operating profit in the third quarter, as the cost of job cuts added to U.S. tariff woes and weak demand for the German luxury carmaker.
Aluminium made with renewable power and from recycling is helping luxury automaker Mercedes-Benz cut CO2 emissions in the production of its new line of electric vehicles, part of a wider effort to decarbonise operations, executives told Reuters.
Mercedes-Benz announced changes to its top management on Wednesday, replacing chief technology officer Markus Schaefer with head of production Joerg Burzer, as it pursues cost efficiencies with a younger board.
The CEO of Mercedes-Benz criticised the European Union's plan to ban CO2-emitting vehicles from 2035 in a media interview on Monday, joining a chorus of voices calling the target into question as it comes up for review this year.
Mercedes-Benz Group AG (OTCPK:MBGAF) Q2 2025 Earnings Conference Call July 30, 2025 2:00 AM ET Company Participants Christina Schenck - VP, Head of Investor Relations & Treasury Harald Wilhelm - Head of Finance & Controlling and Member of the Management Board Ola Kallenius - Chairman of the Management Board & CEO Conference Call Participants Gautam Narayan - RBC Capital Markets, Research Division José Maria Asumendi - JPMorgan Chase & Co, Research Division Patrick Hummel - UBS Investment Bank, Research Division Stephen Michael Reitman - Sanford C. Bernstein & Co., LLC.
German carmakers Mercedes-Benz and Porsche both issued warnings on Wednesday as new US tariffs and falling sales in China dealt a heavy blow to their second-quarter results. Mercedes-Benz reported that net profit tumbled nearly 70% to €957 million, missing analyst expectations.
Mercedes-Benz expects a profit margin of 4% to 6% this year for its car business, the automaker said in its first assessment of the damage from U.S. President Donald Trump's trade war with the European Union.
Mercedes-Benz faces near-term EBIT declines and China headwinds, but remains fundamentally strong with solid liquidity, cost discipline, and an attractive dividend yield. The company's premium positioning, A-rated balance sheet, and history of outperforming estimates support its long-term investment appeal despite current challenges. Strategic focus on high-end models, digital innovation, and advanced driver assistance technology positions Mercedes for future growth, especially as new EV launches approach.
Mercedes-Benz is a BUY: deeply undervalued with a P/E of 6.4x, strong cash flow, and a 7%+ dividend yield, despite market fears. Tariff and China concerns are overstated; Mercedes' US production and flexible cost structure mitigate risks, while capital discipline remains strong. Q1 2025 results show resilient free cash flow and rising net liquidity, even as profits declined, highlighting robust fundamentals and balance sheet.
The annual economic forum in St. Petersburg used to host multibillion-dollar deals and performances by global music stars. With the war in Ukraine still raging, the mood has shifted.
Though known for its iconic 911 sports car, Porsche has become an SUV maker without any U.S. manufacturing.