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Revenue: EUR32 billion, slightly below last year.

EBIT: EUR1.5 billion, 22% above last year.

Free Cash Flow: EUR1.1 billion generated.

Net Industrial Liquidity: EUR30 billion.

Car Sales (ex-China): Increased by 2% in the first half of the year.

Battery Electric Vehicles (BEV) Sales: Up 51%, driven by Europe, up 87%.

Adjusted EBIT for Cars: EUR900 million, with a return on sales of 4%.

Van Sales: Stable at around 94,000 units.

Van Revenue: Slightly up at EUR4.5 billion.

Adjusted EBIT for Vans: EUR450 million, with a return on sales of 10.2%.

Financial Services Adjusted EBIT: Close to EUR500 million, with a return on sales of 15.3%.

Group EBIT Adjusted: EUR2.3 billion.

Shareholder Returns: EUR5 billion in dividends and share buybacks.

Release Date: July 28, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Mercedes-Benz Group AG (MBGAF) delivered solid results in Q2 despite a challenging macroeconomic and geopolitical environment.

The company launched several new products, including the AMG GT 4-door Coupe and GLS Maybach, with positive feedback from media experts and customers.

Production of the new axial flux motor has started, enhancing BEV performance and providing a unique selling proposition.

MBOS platform is being rolled out across all vehicles, enhancing technological capabilities, particularly in ADAS.

Strong free cash flow generation of EUR1.1 billion, maintaining a healthy net industrial liquidity of EUR30 billion.

Negative Points

Significant sales reduction in China, with the market dropping by about 20%, impacting overall sales performance.

Lower revenue compared to the previous year, with a slight decline to EUR32 billion.

Challenges in the Chinese market led to valuation adjustments and lower profit contributions from joint ventures.

Increased costs due to product lifecycle measures, higher energy and freight costs, and raw material price pressures.

The company expects to be in the lower half of its full-year adjusted return on sales guidance range of 3% to 5%.

Q & A Highlights

Q: You’ve taken a charge on the China valuation. Does it mean the cost is done, or are there further measures needed in China? A: (Harald Wilhelm, CFO) The charges are a result of impairment testing, reflecting market and cost developments. It indicates a lower future profit contribution from our joint ventures in China, but no strategic changes are planned. (Ola Kallenius, CEO) We remain committed to China, focusing on tech products, localization, and partnerships to navigate the competitive environment.

Story Continues

Q: Regarding the DTG placement and cash return, do you plan to continue with smaller sales or larger transactions? A: (Harald Wilhelm, CFO) We have successfully executed sizable divestments and will continue to explore all options, including smaller sales or larger transactions, based on market conditions. We aim to maximize shareholder value while maintaining flexibility.

Q: Can you comment on the task to improve profitability at the German plant and leverage cost efficiency in Hungary? A: (Ola Kallenius, CEO) Expanding in Hungary allows us to lower production costs by shifting more volume to cost-attractive locations. In Germany, we are implementing a productivity initiative to streamline processes and improve competitiveness, while also engaging in discussions with unions and political entities to address cost structures.

Q: What is your current view on the competitive environment in Europe with the growing presence of Chinese OEMs? A: (Ola Kallenius, CEO) Currently, the impact is more on the volume market side, but we are not complacent. We are strengthening our competitive position with strong demand for our new generation electric vehicles. We are preparing for future competition by enhancing productivity and maintaining our market leadership.

Q: Can you provide an update on the GLE production shift to China and its impact on profitability? A: (Ola Kallenius, CEO) We will start production of the China-specific GLE in August, with adjustments to meet local market needs. This allows us to react quicker to market demands and partially localize the cost structure, enhancing our competitive position in one of the largest segments in China.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.