Mercedes-Benz Group Delivers Solid Q1 Results in a Dynamic Market Environment

• Return on sales (RoS): Adjusted return on sales (RoS) margins for Mercedes-Benz Cars (7.3%), Mercedes-Benz Vans (11.6%) and adjusted return on equity (RoE) Mercedes-Benz Mobility (8.6%) in line with the 2025 forecast
• Solid foundation: Net liquidity at €33 billion, healthy foundation to navigate through uncertainty
• Product offensive: CLA celebrated its world premiere in Q1 reinforcing EV strategy and digital innovations; Vision V gives an outlook of the future top-end model “Mercedes-Benz VLS”
• Top-End segment: TEV-share reached 15% boosted by Mercedes-AMG (+17%) and G-Class (+18%) sales
• Electrification: Mercedes-Benz Cars electrified vehicles (xEV) accounted for 19% of global sales, with European market at 37% and strong PHEV sales (+8%); Van BEV sales increase by 59%
• Outlook: The Group and divisional guidance would remain unchanged before considering any additional tariff impact. However, assuming all of the currently implemented and the announced tariffs become effective and remain in place until the end of the year, material impacts are expected. The current volatility with regard to tariff policies, mitigation measures and resulting potential direct and indirect effects in particular on customer behaviour and demand is too high to reliably assess the business development for the remainder of the year.

STUTTGART, Germany–(BUSINESS WIRE)–Mercedes-Benz Group AG (ticker symbol: MBG) achieved solid first-quarter results in an ongoing dynamic market environment. Revenue reached €33.2 billion (Q1 2024: €35.9 billion) driven by sales of passenger cars and vans. Group earnings before interest and taxes (EBIT) came in at €2.3 billion. The free cash flow from the industrial business reached strong €2.4 billion (Q1 2024: €2.2 billion) due to the seasonal positive development of working capital. Net liquidity rose to a comfortable €33.3 billion, (end of 2024: €31.4 billion) providing a solid foundation for navigating through times of geopolitical and macroeconomic unpredictability.

“The all-new CLA kicks off our multi-year product and technology offensive, creating fresh momentum for Mercedes-Benz. Desire for our current portfolio sustains our leadership position in the Top-End vehicle segment, including in China. This, combined with a healthy balance sheet provides a solid foundation to navigate our company through a period of geopolitical uncertainties.”

Harald Wilhelm, Chief Financial Officer of Mercedes-Benz Group AG

Divisional results

Mercedes-Benz Cars sold 446,300 vehicles in a dynamic environment ahead of the first market introduction of the all-new CLA. The E-Class and GLC saw ongoing demand, while a strong sales performance of Mercedes-AMG and the G-Class led to a Top-End Vehicle share of 15%. The cash flow before interest and taxes (CFBIT) increased by 21% to €2.8 billion, 1.6 times higher than the adjusted EBIT of €1.8 billion. This development was driven mainly by favourable net working capital effect. The adjusted return on sales (RoS) came in at 7.3%, in line with guidance.

Mercedes-Benz Vans achieved an adjusted EBIT of €475 million in a competitive market in the first quarter, leading to a healthy adjusted operating margin (RoS) of 11.6%. Product mix supported by further improved product substance remained on healthy level and partially outweighed lower unit sales. The result is supported by positive cost development. The cash flow before interest and taxes (CFBIT) reached €588 million, corresponding to a high cash conversion rate adjusted of 1.3. BEV sales surged by 59% thanks to the eSprinter.

Mercedes-Benz Mobility reported a total contract volume of €133.7 billion (end of Q4 2024: €138.1 billion). New business reached €13.6 billion (Q1 2024: €14.8 billion), influenced by the dynamic financial services sector, particularly in China. However, the division recorded a higher average financing and leasing volume per contract.

The adjusted EBIT amounted to €287 million and was thus at the same level as the previous year (Q1 2024: €279 million), further investments in charging activities have been compensated by continued strict cost discipline and efficiency measures. As a result, the adjusted return on equity (RoE) reached 8.6% (Q1 2024: 8.5%).

Outlook

The Group and divisional guidance would remain unchanged before considering any additional tariff impact. However, assuming all of the currently implemented and the announced tariffs become effective and remain in place until the end of the year, material impacts are expected. The current volatility with regard to tariff policies, mitigation measures and resulting potential direct and indirect effects, in particular on customer behaviour and demand, is too high to reliably assess the business development for the remainder of the year. Therefore, reporting figures cannot be estimated with the necessary level of certainty.

Assuming current trade policies persist, EBIT and free cash flow of the industrial business, as well as the adjusted returns on sales of Mercedes-Benz Cars and Mercedes-Benz Vans, will be negatively impacted. Negative impacts on the cash conversion rates of the automotive segments cannot be ruled out either.

Mercedes-Benz Group	Q1 2025	Q1 2024	Change 25/24
Revenue*	33,224	35,873	-7.4%
Earnings before interest and taxes (EBIT)*	2,289	3,863	-40.7%
Net profit/loss*	1,731	3,025	-42.8%
Free cash flow industrial business (FCF)*	2,357	2,233	+5.6%
Earnings per share (EPS) in EUR	1.74	2.86	-39.1%
* in millions of €

Mercedes-Benz Cars	Q1 2025	Q1 2024	Change 25/24
Sales in units	446,300	462,978	-3.6%
– thereof xEV	86,814	90,177	-3.7%
– thereof BEV	40,706	47,521	-14.3%
Share of xEV in unit sales in %	19.5	19.5	–
Revenue*	24,238	25,713	-5.7%
Earnings before interest and taxes (EBIT)*	1,758	2,456	-28.4%
Adjusted earnings before interest and taxes (EBIT)*	1,768	2,323	-23.9%
Adjusted return on sales (RoS) in %	7.3	9.0	-1.7%pts
Cash flow before interest and taxes (CFBIT)*	2,789	2,297	+21.4%
Adjusted cash conversion rate (CCR)	1.6	1.0	–
* in millions of €

Mercedes-Benz Vans	Q1 2025	Q1 2024	Change 25/24
Sales in units	82,943	105,425	-21.3%
– thereof BEV	4,749	2,980	+59.4%
Share of BEV in unit sales in %	5.7	2.8	–
Revenue*	4,080	4,893	-16.6%
Earnings before interest and taxes (EBIT)*	229	933	-75.5%
Adjusted earnings before interest and taxes (EBIT) *	475	800	-40.6%
Adjusted return on sales (RoS) in %	11.6	16.3	-4.7%pts
Cash flow before interest and taxes (CFBIT)*	588	643	-8.6%
Adjusted cash conversion rate	1.3	0.9	–
* in millions of €

Mercedes-Benz Mobility	Q1 2025	Q1 2024	Change 25/24
Revenue*	6,422	6,855	-6.3%
New business*	13,622	14,750	-7.6%
Contract volume (March 31, 2025)*	133,680	138,095**	-3.2%
Earnings before interest and taxes (EBIT)*	287	279	+2.9%
Adjusted earnings before interest and taxes (EBIT) *	287	279	+2.9%
Adjusted return on equity (RoE) in %	8.6	8.5	+0.1%pts
* in millions of €
** Year-end figure

Further information about Mercedes-Benz Group is available at: media.mercedes-benz.com and group.mercedes-benz.com

Link to press information “Sales figures Q1 2025”: media.mercedes-benz.com/sales

Link to capital market presentation Q1 2025: https://group.mercedes-benz.com/q1-2025/en/

Forward-looking statements

This document contains forward-looking statements that reflect our current views about future events. The words “anticipate”, “assume”, “believe”, “estimate”, “expect”, “intend”, “may”, “can”, “could”, “plan”, “project”, “should” and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a negative change in market conditions in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, pandemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates, customs and foreign trade provisions; changes in laws, regulations and government policies (or changes in their interpretation), particularly those relating to vehicle emissions, fuel economy and safety or to the communication regarding sustainability topics (environmental, social or governance topics); price increases for fuel, raw materials or energy; disruption of production due to shortages of materials or energy, labour strikes or supplier insolvencies; a shift in consumer preferences towards smaller, lower-margin vehicles; a limited demand for all-electric vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; the resolution of pending governmental investigations or of investigations requested by governments and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties, some of which are described under the heading “Risk and Opportunity Report” in the current Annual Report or in the current Interim Report. If any of these risks and uncertainties materialises or if the assumptions underlying any of our forward- looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.

Mercedes-Benz Group at a glance

Mercedes-Benz Group AG is one of the world’s most successful automotive companies. With Mercedes-Benz AG, the Group is one of the leading global suppliers of high-end passenger cars and premium vans. Mercedes-Benz Mobility AG specialises in financial and mobility services. The products range from financing, leasing, vehicle subscription, rental and fleet management to insurance, innovative mobility services, digital payment solutions as well as products and services around charging. The company founders, Gottlieb Daimler and Carl Benz, made history by inventing the automobile in 1886. As a pioneer of automotive engineering, Mercedes-Benz sees shaping the future of mobility in a safe and sustainable way as both a motivation and obligation. The company’s focus therefore remains on innovative and green technologies as well as on safe and superior vehicles that both captivate and inspire.

Mercedes-Benz continues to invest systematically in the development of efficient powertrains and sets the course for an all-electric future. Mercedes-Benz is consistently implementing its strategy to transform itself toward a fully electric and software-driven future. The company’s efforts are also focused on the intelligent connectivity of its vehicles, autonomous driving and new mobility concepts as Mercedes-Benz regards it as its aspiration and obligation to live up to its responsibility to society and the environment. Mercedes-Benz sells its vehicles and services in nearly every country of the world and has production facilities in Europe, North and Latin America, Asia and Africa. In addition to Mercedes-Benz, the world’s most valuable luxury automotive brand (source: Interbrand study, 10. Oct. 2024), Mercedes-AMG, Mercedes-Maybach as well as the brands of Mercedes-Benz Mobility: Mercedes-Benz Bank, Mercedes-Benz Financial Services and Athlon. The company is listed on the Frankfurt and Stuttgart stock exchanges (ticker symbol MBG). In 2024, the Group had a workforce of around 175,000 and sold around 2.4 million vehicles. Group revenues amounted to €145.6 billion and Group EBIT to €13.6 billion.

Contacts

Willem Spelten, +49 151 5862 4395, [email protected]
Edward Taylor, +49 176 3094 1776, [email protected]
Benjamin Kraft, +49 176 3095 7277, [email protected]