Mercedes-Benz defies global challenges: Robust financial results in Q2 2025 despite tariffs and sales declines
Despite a dynamic and increasingly complex economic environment, Mercedes-Benz Group AG is proving resilient: In the second quarter of 2025, the Stuttgart-based car manufacturer was able to report a solid financial result - despite all the global challenges. With an adjusted EBIT of €2.0 billion and a free cash flow of €1.9 billion in the industrial business, the company once again demonstrated its financial stability. Net liquidity even rose to 30.8 billion euros, an increase of more than 12% compared to the same quarter of the previous year.
Challenges: New customs policy, volatile markets and strategic restructuring
A key negative factor in the second quarter was the newly introduced global tariffs - particularly in the China business. These had a noticeable impact on the Group and, together with macroeconomic headwinds, led to a significant decline in reported EBIT to €1.273 billion (previous year: €4.037 billion, -68.5%).
Special effects amounting to 715 million euros also had a negative impact on earnings. These resulted in particular from efficiency measures, M&A transactions and the sale of production and sales locations in Argentina. Nevertheless, the operating result remains robust - and the company continues to focus on active cost management and the diversification of its global production structure.
Mercedes-Benz Cars: return on sales falls - but plug-in hybrids in high demand
The Passenger Cars segment sold 453,674 vehicles in the second quarter - a decrease of 8.7% compared to Q2/2024. This was primarily due to deliberate inventory and sales management to cushion the impact of the customs policy as well as generally strained demand, particularly in China.
Particularly striking: sales of fully electric vehicles (BEV) fell significantly compared to the previous year (-23.6%), while plug-in hybrids increased by 34%. This means that interest in electrified drives remains high, even if the BEV boom has temporarily slowed down.
The adjusted return on sales (RoS) was 5.1% in the second quarter - well below the 10.2% in the previous year. Excluding customs duties, the RoS would have been 6.6%.
Mercedes-Benz Vans: electric mobility stabilizes the van segment
The Mercedes-Benz Vans segment presents a mixed picture: sales fell by 9.7% to 93,393 units, reflecting the strong competition in the market and economic uncertainties. This makes the 31.9% increase in all-electric vans (BEV) all the more pleasing.
Despite declining volumes, the adjusted return on sales reached 10.4% - a remarkable level in a highly competitive environment.
Mercedes-Benz Mobility: Stable performance despite slight decline
The Mercedes-Benz Mobility financial services division delivered a solid performance with an adjusted return on equity (RoE) of 8.9%. New business contracted slightly by 2.1%, which is mainly due to the decline in contract volume. Nevertheless, adjusted EBIT increased by 7% to 290 million euros in the second quarter.
Outlook: Adjustment of the forecasts for 2025
In view of the current global economic uncertainties and the ongoing customs dynamics, the outlook for 2025 as a whole has been adjusted:
Group turnover is expected to be "significantly below the previous year".
The adjusted return on sales at Mercedes-Benz Cars is now in a new range between 4-6% (previously: 8.1%).
Mercedes-Benz Vans is expected to achieve an adjusted RoS of 8-10% (previously: 14.6%).
The electrification strategy, on the other hand, will be further accelerated: The proportion of electrified vehicles (xEV) is to increase to 20-22% for Mercedes-Benz Cars and to 8-10% for vans.
Overview of key financial figures (Q2/2025)
Here are the key figures from Q2 2025 in direct comparison with the same quarter of the previous year and the half-year figures:
Conclusion: Mercedes-Benz remains stable, adapts - and invests in the future
Mercedes-Benz is meeting the current challenges with strategic foresight and a solid financial basis. Investments in research, development and electrification will continue, despite short-term declines in unit sales and turnover.
The clear message from CEO Ola Källenius: "Staying on course, intelligent cost management and innovative products - this is how we ensure our long-term competitiveness."
