- Mercedes-Benz Cars’ Performance: Full-year adjusted return on sales is projected at 4% to 6%, with an estimate of 5.13%.
- Mercedes-Benz Vans’ Performance: Full-year adjusted return on sales is expected between 8% to 10%, with an estimate of 10.2%.
- Second Quarter Financials: Adjusted EBIT recorded at €1.99 billion, a decline of 51% year-on-year, but exceeded the estimate of €1.59 billion.
- Cars Business: Adjusted EBIT at €1.23 billion, down 56% year-on-year, yet surpassed the estimate of €971.4 million.
- Vans Business: Adjusted EBIT reached €441 million, a 47% year-on-year drop, but above the estimate of €423.6 million.
- Mobility Segment: Adjusted EBIT increased by 7% year-on-year to €290 million, surpassing the estimate of €281.6 million.
- Overall Sales: Revenue fell 9.8% year-on-year to €33.15 billion, slightly below the estimate of €33.23 billion.
- Cars Sales: Revenue stood at €24.16 billion, an 11% decrease year-on-year, yet higher than the estimate of €23.43 billion.
- Vans Sales: Revenue hit €4.24 billion, decreasing by 11% year-on-year, below the estimate of €4.38 billion.
- EBIT Summary: Total EBIT was €1.27 billion, a significant 68% year-on-year decline, missing the estimate of €1.9 billion.
- Net Income: Fell to €957 million, a 69% year-on-year reduction, below the estimate of €1.29 billion.
- Industrial Free Cash Flow: Increased by 14% year-on-year to €1.87 billion.
- Strategic Adjustments: Group EBIT adjustments of €715 million primarily related to efficiency measures and M&A transactions, including disposal in Argentina.
- Outlook for Revenue and Sales: Group revenue is expected to be significantly lower than the previous year due to reduced sales at Mercedes-Benz Cars and Vans. A stronger second half is anticipated for Vans compared to the first half.
Mercedes-Benz Group on Smartkarma
Analyst coverage of Mercedes-Benz Group on Smartkarma reflects a mix of bullish and bearish sentiments from various research providers. Baptista Research‘s report titled “Mercedes Benz: How Electrification & Innovation Are Powering the Next Growth Wave!” highlights the company’s solid performance in the first quarter, achieving key goals despite a challenging economic environment. The report also discusses potential future challenges such as changes in trade policies that could impact results.
On the other hand, Sreemant Dudhoria, CFA, took a bearish stance in the report “Short – Mercedes-Benz Group AG (MBG.DE)” predicting a significant decrease in earnings and free cash flow in 2025 due to rising capex, weak pricing, and trade tariffs. The report points out risks in China sales and valuation, highlighting issues like limited profitability in China, EV price wars, and structural pressures affecting the company’s valuation. Additionally, Caixin Global reported on Mercedes-Benz China’s layoffs amidst a changing and challenging market, emphasizing the company’s efforts to improve operational efficiency while complying with legal regulations and supporting affected employees.
A look at Mercedes-Benz Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Mercedes-Benz Group AG, a leading automobile company known for its innovative products, has received solid Smart Scores across various key factors. With top scores in both Value and Dividend, the company shows strength in its financial stability and investor returns. Despite slightly lower scores in Growth, Resilience, and Momentum, Mercedes-Benz Group remains a formidable player in the automotive industry due to its consistent performance.
Looking ahead, Mercedes-Benz Group’s outlook appears promising based on its high Value and Dividend ratings, indicating strong fundamentals and investor attractiveness. While there may be areas for improvement in Growth, Resilience, and Momentum, the company’s solid foundation and diversified product portfolio position it well for long-term success in the competitive automotive market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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