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.

Mercedes-Benz Group AG 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

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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.

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** Year-end figure