Mercedes-Benz reports 55.8% drop in net profit for H1 2025.

Mercedes-Benz reports 55.8% drop in net profit for H1 2025.

Mercedes-Benz Group (MBGn) reported a significant decline in its net profit for the first half of 2025, with a 55.8% drop to €957 million compared to the same period last year. The company's earnings per share (EPS) decreased to €0.95 from €2.95 [1].

The primary drivers of this decline were lower vehicle deliveries, softer pricing, negative currency effects, and reduced contributions from its Chinese joint ventures. Revenue fell 10% to €33.2 billion, and EBIT dropped 68% to €1.27 billion [1].

Mercedes-Benz Cars, the automaker's core business, recorded an 11% revenue decline to €24.2 billion and a 56% fall in adjusted EBIT to €1.23 billion. Unit sales dropped 9% to 453,674 vehicles, including a 19% decrease in China to 140,397 units. All-electric vehicle sales declined 24%, while plug-in hybrid deliveries rose 34% [1].

Mercedes-Benz Vans also experienced a 10% unit sales decline to 93,393, driven by an 11% drop in commercial vans and a 4% decline in private vans. Adjusted EBIT declined 47% to €441 million, with return on sales falling to 10.4% from 17.5% [1].

The Mobility segment saw a 2% revenue decrease to €6.25 billion, while New Business declined 2% to €13.8 billion. Group vehicle sales declined 6% in the first half of 2025 to 900,000 units, with China leading regional declines with a 14% drop [1].

Free cash flow of the industrial business rose 14% to €1.87 billion, and adjusted free cash flow increased 16% to €1.98 billion. Research and development spending rose 1% to €2.36 billion [1].

The company attributed the downturn to various factors, including unexpected macroeconomic and geopolitical developments, trade policy environment, and potential impacts of US tariff policy [1].

References:
[1] https://www.investing.com/news/earnings/mercedesbenz-earnings-plunge-on-china-weakness-vanishing-pricing-power-4158890