Mercedes-Benz profits slump on China, tariffs; Shares slide

(Sharecast News) - Shares in Mercedes-Benz fell on Thursday after the famous marque posted a sharp fall in annual earnings and warned of a tougher 2026 amid growing competition a from China and headwinds from US tariffs. Full-year operating profit slumped 57% to €5.8bn - well below analyst forecasts of €6.6bn. The German luxury car maker also took a hit of €1.1bn from tariff costs.

The company said it expected an operating profit margin of 3% - 5% in main autos business, with flat sales volumes.

Net profits almost halved to €5.3bn, down from €10.4bn and auto sales declined by 9.2% as the company cited "fierce competition in China" where revenue slumped by 19% as local manufacturers started to take more market share, particularly in the electric vehicle segment.

The company said it planned more cost cuts this year as well as more product launches as it targeted an 8% to 10% profit margin at the auto division.

Reporting by Frank Prenesti for Sharecast.com