--  Mercedes-Benz Cars: adjusted return on sales of 4.0% within guidance; 
      reported return on sales reflecting intensified market environment in 
      China and macroeconomic headwinds 
 
   --  Product launch momentum builds: Mercedes-Benz Cars BEV sales increased 
      by 51% year-on-year, including growth of 87% in Europe 
 
   --  Benchmark performance at Mercedes-Benz Vans: adjusted return on sales 
      of 10.2% at the upper end of the guidance range; all-electric van sales 
      rose by 46% year-on-year 
 
   --  Strong Mercedes-Benz Financial Services results: adjusted EBIT 
      increased by 70% year-on-year to EUR492 million, driven by higher 
      portfolio margins and lower operating expenses; adjusted return on equity 
      increased significantly to 15.3% 
 
   --  Mercedes-Benz Group: EBIT increased to EUR1.5 billion; consistent cost 
      discipline supported earnings; net liquidity remained strong at EUR30.4 
      billion at the end of the quarter; free cash flow of the industrial 
      business amounted to EUR1.1 billion in Q2 
 
   --  Full-year outlook: Guidance for Mercedes-Benz Cars adjusted return on 
      sales confirmed; xEV share at Mercedes-Benz Cars now expected at 23% to 
      25%; Mercedes-Benz Cars unit sales and Group revenue now anticipated 
      slightly below prior-year levels; guidance for adjusted return on equity 
      for Financial Services increased to 12% to 14%; guidance for free cash 
      flow of the industrial business, including mergers and acquisitions, 
      confirmed 

"Despite a demanding market environment, we remained on track in the second quarter while continuing to advance our product launch programme. Customer response to our new models is strong, with Mercedes-Benz Cars BEV sales up 51% and BEV order intake in Europe more than doubling in the quarter. 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 AG

STUTTGART, Germany--(BUSINESS WIRE)--July 28, 2026-- 

Mercedes-Benz Group AG (ticker symbol: MBG) reported revenue of EUR32.1 billion in the second quarter (Q2 2025: EUR33.2 billion) and Group EBIT of EUR1.5 billion (Q2 2025: EUR1.3 billion), while continuing to execute its largest-ever product launch programme and further improving efficiency and productivity.

Group EBIT was supported by strong earnings at Mercedes-Benz Financial Services, Mercedes-Benz Vans and higher contributions from the Group reconciliation, partly offset by lower earnings at Mercedes-Benz Cars. Group EBIT also included a positive effect of EUR131 million related to the planned sale of Athlon Group. Adjusted Group earnings before interest and taxes reached EUR2.3 billion (Q2 2025: EUR2.0 billion).

Mercedes-Benz made further progress with its Next Level Performance (NLP) programme, with cost measures continuing to support earnings in the second quarter. At Group level, general administrative expenses decreased by 14%, and research and development expenditure declined by 12%, following last year's investment peak for the Mercedes-Benz Cars product launch plan. At Mercedes-Benz Cars, cost of sales declined by 7%. Efficiency measures also supported the cost position at Mercedes-Benz Vans and Mercedes-Benz Financial Services. Building on a reduction in fixed costs of approximately 25% since 2019, the company began further intensifying its global productivity measures in June 2026, with a particular focus on its German locations.

Free cash flow of the industrial business amounted to EUR1.1 billion in the second quarter (Q2 2025: EUR1.9 billion), supported by proceeds of EUR417 million from the partial sale of the Daimler Truck shareholding. In the first half of 2026, free cash flow of the industrial business amounted to EUR3.0 billion (H1 2025: EUR4.2 billion), reflecting an outflow of approximately EUR1.1 billion for severance payments in connection with the Next Level Performance programme.

The company maintained a solid financial position amid macroeconomic headwinds and ongoing model ramp-ups. Following dividend payments and share repurchases totalling EUR5 billion in the first half of the year, net liquidity of the industrial business remained strong at EUR30.4 billion, while the funding ratio of the pension plans improved to 117% from 113% at year-end 2025.

Mercedes-Benz Cars

Mercedes-Benz Cars posted adjusted EBIT of EUR909 million in the second quarter (Q2 2025: EUR1,228 million), corresponding to an adjusted return on sales (RoS) of 4.0% (Q2 2025: 5.1%) and thus within the full-year guidance range of 3% to 5%. The year-on-year development reflected intensified market pressure, especially in China, a less favourable model mix, product lifecycle measures and launch-campaign-related costs, partly offset by continued efficiency gains.

Reported EBIT amounted to EUR49 million (Q2 2025: EUR783 million) and included impairments of EUR704 million in connection with Chinese equity-method investments. The effects did not result in a corresponding cash outflow in the second quarter and were excluded from adjusted EBIT. The Chinese market and customers in China remain of high strategic importance to Mercedes-Benz.

Mercedes-Benz continued to advance its largest-ever model launch programme, comprising more than 40 new models between 2025 and 2027. Mercedes-Benz Cars BEV sales increased by 51% year-on-year to 52,852 units in the second quarter (Q2 2025: 35,027 units), driven by growth of 87% in Europe. Overall, Mercedes-Benz Cars sold 417,765 vehicles in the second quarter (Q2 2025: 453,674 vehicles). Sales increased by 4% in Europe and by 10% in the United States. This partly offset a 30% sales decline in China, where intense competition, subdued demand and the portfolio-wide model changeover continued to affect sales. Excluding China, global car sales increased by 2% year-on-year.

The Top-End segment accounted for 13.9% of global sales in the second quarter. The share reached 14.3% in the first half of 2026, within the full-year target range of 14% to 15%.

The ramp-up of recently launched models is increasingly translating into sales, with the all-new CLA and GLB making a tangible contribution and high order volumes for the all-new electric GLC expected to support further deliveries in the second half of the year. The new S-Class has made a successful start in Europe, with more regions to follow in the coming months. Order books also opened for a broad range of further models, including the all-new electric C-Class, the new GLE and GLS and the Mercedes-AMG GLE 53 and GLC 53 model families. Further product highlights included the world premiere of the all-new Mercedes-AMG GT 4-Door Coupé variants and the debuts of the new Mercedes-Maybach GLS as well as the Mercedes-AMG GLE 63 S 4MATIC+ as SUV and Coupé and the Mercedes-AMG GLS 63 4MATIC+ SUV, all powered by new V8 engines. The model launch plan will continue with the world premiere and start of sales of the all-new electric GLA at the end of July. Following China and the United States, Mercedes-Benz is also targeting the introduction of point-to-point assisted driving in the first German cities by the end of 2026.

In July, Mercedes-Benz marked the expansion of its Kecskemét plant in Hungary. Investments of around EUR1 billion have doubled the site's footprint and increased its production flexibility for electrified combustion-engine, plug-in hybrid and all-electric models. The plant is producing the all-new electric C-Class, the first all-electric Core model built at the site.

Mercedes-Benz Vans

With an adjusted RoS of 10.2%, Mercedes-Benz Vans once again achieved double-digit results in the second quarter of 2026. Adjusted EBIT increased by 3% to EUR454 million compared with the second quarter of 2025, driven by higher sales outside of China, positive contributions from aftersales and the leasing portfolio. At the same time, the results reflect net pricing pressure and product mix effects as well as the ramp-up efforts for the new Van Architecture. Mercedes-Benz Vans is currently executing its largest product investment programme in its history.

Mercedes-Benz Vans recorded second-quarter sales of 94,075 units, reflecting stable overall global demand with a strong performance in North America (+23%) and Europe (+5%) along with significant sales growth for eVans (+46%) compared to the second quarter of 2025.

In June, Mercedes-Benz Vans started series production of the all-new electric VLE at its Spanish Vitoria plant. It is the first vehicle based on the newly developed, modular and drivetrain-flexible Van Architecture. It serves as a perfect companion for a wide range of use cases -- from a flexible solution for families and leisure-oriented customers to exclusive shuttle services.

Mercedes-Benz Financial Services

Mercedes-Benz Financial Services delivered a strong performance in the second quarter, with adjusted EBIT rising 70% to EUR492 million, driven by higher margins and improved cost efficiency. The adjusted return on equity (RoE) increased to 15.3%, significantly above the previous full-year guidance range of 10% to 12%. Total contract volume stood at EUR131.6 billion as of 30 June, up 2.2% compared with year-end 2025. The increase was driven by positive exchange-rate effects and growth in the United States. New business reached EUR26.8 billion in the first half of 2026.

Strategic development area: Mercedes-Benz vehicles for security and defense purposes

Mercedes-Benz plans to further intensify the company's activities in the security and defense sector, reflecting its broader responsibility in a changing security environment. Building on more than 45 years of experience with modifiable vehicles for security, rescue and defense applications -- including the Mercedes-Benz G-Class, Sprinter and Vito -- the company provides reliable base vehicles and chassis for specific operational requirements.

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July 28, 2026 01:04 ET