Mercedes-Benz Reports Significant Drop in Profits for Q2 2025, Revises Full-Year Forecast
Profits for Mercedes-Benz decline significantly, revised forecast issued
Mercedes-Benz, the renowned German automaker, has reported a sharp decline in profits for Q2 2025, attributing the drop to a decrease in industrial sales and unit volumes, the impact of tariffs, one-off charges, and restructuring costs. As a result, the company has revised its full-year forecast for 2025, lowering profit and EBIT expectations, and adjusted margin and volume targets.
The decline in profits was evident in the adjusted EBIT, which fell by around 68% compared to the same period in the previous year, amounting to approximately €1.27 billion. The drop was due to a combination of factors, including reduced sales volumes, the influence of tariffs, adverse sales mix, and one-off items such as restructuring, M&A impacts, and legal provisions.
In response to these challenges, Mercedes-Benz has updated its full-year outlook for 2025. The company expects lower volumes and profitability for some business units, with adjusted EBIT and margins expected to be lower compared to previous guidance. The Q2 presentation provides updated guidance on these adjustments, showing reduced volume and margin assumptions and specific negative impacts in the Vans segment.
The sales volume for the second half of the year is expected to be at the level of the first half, with both Mercedes-Benz Cars and Vans anticipating significantly lower sales volumes compared to 2024. The company has not provided specific forecasts for the sales volume or revenue for the third and fourth quarters of 2025.
For more detailed figures and specific line items that drove the one-off charges, interested parties are encouraged to consult the Q2 2025 Capital Market Presentation, which contains the precise revised numerical guidance by segment (volumes, EBIT, and ROS changes) and the exact consolidated full-year targets.
The decline in Mercedes-Benz's profits, as reported in Q2 2025, was felt across multiple sectors, including the automotive industry, finance, transportation, and possibly others due to tariffs and restructuring costs. To counteract these challenges, the company revised its full-year forecast, predicting lower profits and EBIT expectations not just for the automotive sector, but potentially also for the finance and transportation industries.
