Lowest in six years: Mercedes-Benz reports record drop in profits
12 February 15:11
The profit of the German company Mercedes-Benz in 2025 fell by almost half compared to the previous period – from €10.4 billion to €5.3 billion, the company reported on Thursday, February 12, according to "Komersant Ukrainian".
Record low profit in 2025
The annual profit was the lowest for the company in the last six years. The last time Mercedes reported a lower profit was in 2019 – €1.64 billion. Revenue for the past year also decreased by nine percent to €145.59 billion. Analysts note that the decline in financial performance was caused by lower demand in Europe and China, as well as US tariffs.
Last year, Mercedes sold a total of about 2.1 million vehicles of various types. Passenger car sales amounted to 1.8 million units, which is 9 percent less than in 2024. The decline in sales in China was particularly noticeable, at 19 percent. China remains the most important market for Mercedes. The Stuttgart-based company sold almost a third of all its passenger cars there in 2025.
Mercedes expects profit growth in 2026
The financial results were in line with forecasts and were driven by a “clear focus on efficiency, speed, and flexibility,” commented Mercedes CEO Ola Källenius on the financial results.
The company expects consolidated revenue to remain at the same level in 2026, with operating profit significantly higher. According to the dpa news agency, Mercedes responded to the difficult situation a year ago and announced a cost-cutting program. According to the plan, production and fixed costs are to be reduced by ten percent by 2027.
