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.
Mercedes-Benz stock (OTCMKTS: MBGAF) has experienced a relatively strong year thus far, with an increase of almost 7%, outperforming the S&P 500, which has remained approximately static year-to-date. The operating environment has been challenging for the company due to decreasing sales worldwide and the effects of U.S. tariffs.
Chrysler owner Stellantis and Mercedes-Benz withdrew their guidance for the year while Volkswagen said it was expecting profits at the low end of a previous range as automakers struggle to assess the impact of President Donald Trump's tariff policy.
The German luxury-car maker said Wednesday that its previously announced guidance would remain unchanged without any further tariff impact.
Mercedes-Benz on Wednesday reported lower profitability in its cars business in the first quarter and warned that tariffs could impact its full-year earnings, as trade tensions forced the luxury carmaker to scrap its outlook.