Key Highlights
- First-quarter earnings declined 17.2% to €1.43 billion, with revenues falling 5% to €31.6 billion
- Chinese market deliveries plunged 27% to 111,621 vehicles, pressuring total unit sales down 6%
- American market vehicle deliveries surged 20% to 81,060 units, providing partial relief
- Battery electric vehicle deliveries increased 9% to 44,258 units; plug-in hybrid sales declined 20%
- Annual 2026 financial projections remain unchanged, with EBIT forecast significantly above 2025 performance
Mercedes-Benz kicked off 2026 on a challenging note, posting first-quarter net earnings of €1.43 billion—a 17.2% decline from the €1.73 billion recorded in the prior-year period. The company’s revenue decreased 5% to €31.6 billion, though this figure marginally exceeded analyst forecasts.
Operating profit (EBIT) contracted 17% to €1.90 billion. The adjusted EBIT figure experienced an even sharper contraction of 30%, settling at €1.77 billion.
China represented the primary pressure point. The German automaker’s deliveries in its most important individual market contracted 27% to 111,621 vehicles. Management attributed the weakness to strategic model transitions, broader economic headwinds, and intensifying competitive dynamics.
Mercedes-Benz Group AG, MBG.DE
Across the entire Asian region, vehicle deliveries fell 24% to 152,662 units. This represents a substantial setback for a manufacturer that has historically depended on affluent Chinese consumers.
The Cars division absorbed the most significant impact, with operating earnings plummeting 54% to €809 million. The segment’s return on sales compressed to 3.5% from 7.3% in the comparable 2025 quarter.
American Market and Vans Business Provide Support
Despite widespread challenges, several bright spots emerged. The Vans division delivered robust results, with EBIT jumping 71% to €392 million despite unit volume edging down 3%.
American market car deliveries climbed 20% to 81,060 vehicles, offering substantial relief against Chinese market weakness. CFO Harald Wilhelm highlighted that robust appetite for recent product launches and solid order backlogs position the organization for improved performance during the year’s second half.
Fully electric vehicle deliveries expanded 9% to 44,258 units, representing 19.4% of first-quarter total sales. Plug-in hybrid models experienced less favorable results, dropping 20% to 37,079 units.
Overall first-quarter vehicle deliveries totaled 419,430 units, reflecting a 6% year-over-year decrease.
Financial Position and Investment Trends Remain Stable
Adjusted industrial free cash flow improved 18% to €2.84 billion. Industrial segment net liquidity increased 5% to €33.81 billion compared to 2025 year-end levels.
Research and development expenditure decreased 3% to €2.25 billion, while capitalized development investments rose 21% to €861 million. Capital expenditure on property and equipment increased 9% to €749 million.
Basic earnings per share fell to €1.49 compared to €1.74 in the previous year’s quarter.
Regarding corporate developments, Mercedes-Benz executed agreements in April 2026 to divest the Athlon Group to BNP Paribas, with transaction completion anticipated during the year’s latter half. The manufacturer also advanced its “Own Retail” strategic transformation in Germany, divesting six additional retail operations during the first quarter.
Mercedes-Benz maintained its complete 2026 annual guidance, anticipating group revenue approximately matching prior-year levels and operating profit substantially exceeding the 2025 result.
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