Mercedes shares plunge after profit miss

For 2025, the company posted an operating profit of €5.8 billion ($6.9 billion), representing a 57% decline from the previous year and falling short of market expectations, News.Az reports, citing foreign media.

Mercedes-Benz said its performance was weighed down by roughly €1 billion ($1.2 billion) in tariff-related expenses, along with weaker competitiveness in the Chinese market and unfavorable foreign exchange movements.

“Amid a dynamic market environment, our financial results remained within our guidance, thanks to our sharp focus on efficiency, speed, and flexibility,” said Ola Källenius, chairman of the board of management at Mercedes-Benz Group, in a statement.

Looking ahead, the automaker is targeting an adjusted return on sales for its Mercedes-Benz Cars division of between 3% and 5% in 2026, down from 5% in 2025. The company said it plans further cost-cutting measures and a wave of new product launches next year to improve performance.

Shares of the Munich-listed company fell 4.3% in morning trading and are down around 10% since the start of the year.

Mercedes-Benz reported total revenue of $157 billion for 2025 and said it expects revenue in the coming year to remain broadly in line with the previous year. The group also forecast that earnings before interest and taxes (EBIT) would be “significantly above” the prior year’s level.

The results come amid broader challenges facing European carmakers, including rising production costs, supply chain pressures, stricter regulatory requirements and the ongoing transition toward electric vehicles.