Key Highlights
- First quarter net profit decreased 17.2% to €1.43 billion, while revenue declined 5% to €31.6 billion
- Chinese market sales plummeted 27% to 111,621 vehicles, contributing to 6% overall volume decline
- American market sales climbed 20% to 81,060 vehicles, providing significant offset
- Battery electric vehicle sales increased 9% to 44,258 units; plug-in hybrid sales decreased 20%
- 2026 annual guidance remains unchanged, with EBIT projected significantly above 2025 performance
Mercedes-Benz kicked off 2026 with challenging first-quarter results, recording net profit of €1.43 billion—a 17.2% decline from the €1.73 billion achieved in the comparable 2025 period. Revenue retreated 5% to €31.6 billion, though this figure marginally exceeded analyst projections.
Mercedes-Benz said it still expects 2026 operating profit to come in significantly above last year’s level, even after Q1 EBIT fell 17% to €1.9B and revenue dropped 4.9% to €31.6B. The company is betting on 40+ new models to offset weak demand and heavy competition in China.
— Wall St Engine (@wallstengine) April 29, 2026
EBIT decreased 17% to €1.90 billion. The adjusted EBIT metric experienced a more pronounced decline of 30%, settling at €1.77 billion.
China presented the most significant obstacle. The automaker’s largest individual market witnessed sales tumble 27% to 111,621 units. Company leadership attributed this downturn to scheduled model transitions, broader economic headwinds, and intensifying market competition.
Mercedes-Benz Group AG, MBG.DE
The entire Asian region experienced a 24% unit sales contraction to 152,662 vehicles. This represents substantial pressure for a marque historically dependent on affluent Chinese consumers.
The Cars segment absorbed the most severe impact, with EBIT plummeting 54% to €809 million. Return on sales contracted to 3.5%, down from 7.3% during the prior year’s first quarter.
American Market and Vans Division Deliver Positive Results
Several bright spots emerged from the quarterly report. The Vans division delivered robust performance, with EBIT jumping 71% to €392 million, despite unit volume edging down 3%.
American market car sales expanded 20% to 81,060 units, delivering substantial compensation for Chinese market softness. CFO Harald Wilhelm highlighted that robust demand for recent product launches and healthy order backlogs position the company for improved performance during the year’s latter half.
Battery electric vehicle sales advanced 9% to 44,258 units, representing 19.4% of total first-quarter deliveries. Plug-in hybrid vehicles experienced headwinds, declining 20% to 37,079 units.
Overall first-quarter vehicle deliveries reached 419,430 units, representing a 6% year-over-year decrease.
Financial Position and Investment Metrics Remain Solid
Adjusted free cash flow from industrial operations improved 18% to €2.84 billion. Net liquidity within this segment increased 5% to €33.81 billion compared to 2025 year-end figures.
Research and development expenditure decreased 3% to €2.25 billion, while capitalised development costs rose 21% to €861 million. Property and equipment investment advanced 9% to €749 million.
Basic earnings per share came in at €1.49 compared to €1.74 in the previous year.
Regarding corporate transactions, Mercedes-Benz finalized agreements in April 2026 to divest the Athlon Group to BNP Paribas, with transaction completion anticipated during the second half of 2026. The automaker also advanced its “Own Retail” restructuring initiative in Germany, completing six additional operations transfers during the first quarter.
Mercedes-Benz maintained its complete 2026 annual guidance, forecasting group revenue approximately level with 2025 results and EBIT considerably exceeding the previous year’s performance.
