Mercedes-Benz Group reported second-quarter 2026 revenue of €32.06 billion, representing a 3.3% decline from €33.15 billion in the prior-year period. Earnings before interest and taxes increased 21.5% to €1.55 billion, while net profit rose 13.5% to €1.09 billion. Earnings per share increased 20% to €1.14.
Adjusted group EBIT reached €2.3 billion, compared with €2 billion a year earlier. The reported result included a €131 million gain connected to the planned sale of leasing subsidiary Athlon Group.
Cost reductions helped offset lower vehicle sales and pressure in China. Group administrative expenses declined 14%, research and development spending fell 12% following the prior year’s investment peak, and cost of sales within Mercedes-Benz Cars decreased 7%.
Mercedes-Benz said it has reduced fixed costs by approximately 25% since 2019 and began intensifying global productivity measures in June 2026, with particular attention on its German operations.
Free cash flow from the industrial business declined to €1.1 billion from €1.87 billion. First-half free cash flow fell to €2.96 billion from €4.22 billion, partly reflecting approximately €1.1 billion in severance payments associated with the Next Level Performance program.
Industrial net liquidity remained at €30.4 billion after Mercedes-Benz distributed approximately €5 billion through dividends and share repurchases during the first half.
Mercedes-Benz Cars generated adjusted EBIT of €909 million, down 26% from €1.23 billion. Its adjusted return on sales declined to 4% from 5.1% but remained within the company’s full-year target range of 3% to 5%.
Reported EBIT for the Cars division fell to €49 million from €783 million after Mercedes-Benz recorded €704 million in noncash impairments related to equity investments in China.
Mercedes-Benz Cars sold 417,765 vehicles during the quarter, a decline of 7.9%. Sales increased 4% in Europe and 10% in the United States but fell 30% in China as local competition, weaker demand and model transitions affected performance.
Battery-electric vehicle sales increased 50.9% to 52,852 units, including 87% growth in Europe. Excluding China, global Mercedes-Benz car sales increased 2%.
The company is progressing through a launch program covering more than 40 new vehicles between 2025 and 2027. Recently introduced models include the CLA and GLB, while the electric GLC, electric C-Class and refreshed S-Class are expected to support sales during the second half.
Mercedes-Benz Vans delivered adjusted EBIT of €454 million, up 3%, and an adjusted return on sales of 10.2%. Van sales increased slightly to 94,075 vehicles, while electric van sales rose 46.4% to 10,062 units.
Mercedes-Benz Financial Services reported a 70% increase in adjusted EBIT to €492 million. Adjusted return on equity reached 15.3%, compared with 8.9% a year earlier, as portfolio margins and operating efficiency improved.
Mercedes-Benz lowered its full-year expectations for car sales and group revenue. Both are now projected to be slightly below 2025 levels, compared with the previous expectation for broadly unchanged results.
The company raised its expected electrified vehicle share to between 23% and 25% from 21% to 23%. It also increased the expected adjusted return on equity for Financial Services to between 12% and 14% from 10% to 12%.
Mercedes-Benz maintained its 3% to 5% adjusted return-on-sales outlook for the Cars division and reaffirmed its industrial free-cash-flow guidance.
KEY QUOTES:
“Despite a demanding market environment, we remained on track in the second quarter while continuing to advance our product launch program.”
“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
