STUTTGART, Feb 12 - Mercedes-Benz on Thursday disclosed a markedly weaker set of full-year results, with operating earnings contracting by 57% as the premium automaker contended with heightened competition in China and the burden of tariffs.
For 2025, group earnings before interest and taxes (EBIT) stood at 5.8 billion euros, down from 13.6 billion euros a year earlier. That outcome fell short of the 6.6 billion euros forecast compiled by Visible Alpha analysts. Total revenue for the year declined 9% to 132.2 billion euros, marginally below the 134 billion euros consensus.
Chief Executive Officer Ola Kaellenius framed the company’s performance in the context of a turbulent market. "Amid a dynamic market environment, our financial results remained within our guidance, thanks to our sharp focus on efficiency, speed, and flexibility," he said.
The published figures and the CEO’s comment together underline the squeeze on profitability and top-line momentum that Mercedes-Benz experienced over the reporting period. The company’s operating profit contraction and revenue shortfall reflect the twin headwinds the automaker flagged: intensified competitive pressures in the Chinese market and the cost impact of tariffs.
Financial snapshot
- Group EBIT for 2025: 5.8 billion euros.
- Analyst forecast (Visible Alpha): 6.6 billion euros.
- EBIT in prior year: 13.6 billion euros.
- Revenue for 2025: 132.2 billion euros, down 9% year-on-year; consensus: 134 billion euros.
- Reported exchange rate cited by the company: ($1 = 0.8431 euros).
The company characterized the year as one in which its operational priorities - efficiency, speed, and flexibility - helped it remain within previously stated guidance despite the adverse conditions.
Implications
The results illustrate a period of margin pressure for a major premium automaker, with revenue and operating profit both contracting. The outcome is presented by management as consistent with the firm’s guidance, supported by internal measures to control costs and adapt to market changes.
Note on scope - The company’s commentary and the published numbers are the basis for this report; no additional data beyond the announced results and the CEO statement has been included.