Stuttgart, Wednesday – Mercedes-Benz remains confident in its long-term strategy despite a challenging first quarter, as the premium German automaker continues to lean on its strong position in the high-end vehicle segment and a robust financial foundation.
The company reported a net profit of €1.73 billion ($1.93 billion) for the first three months of the year, reflecting a 43% year-on-year decline due to soft demand in China and increasing global trade tensions. However, Mercedes-Benz emphasized that its focus on top-tier vehicles and prudent financial management equips it well to navigate market uncertainty.
“This, combined with a healthy balance sheet, provides a solid foundation to navigate our company through a period of geopolitical uncertainties,” said CFO Harald Wilhelm, reinforcing the brand’s long-term confidence.
While overall revenue fell 7.4%, Mercedes-Benz saw resilient performance in several international markets, with the United States accounting for nearly a quarter of the quarter’s revenue. Despite a modest 4.4% dip in the U.S., Mercedes continues to be a key player in the luxury segment.
China, traditionally a growth driver, saw steeper competition from local electric vehicle manufacturers, leading to a nearly 25% drop in revenue. Nevertheless, Mercedes-Benz is actively adapting its strategy in the region to better meet evolving consumer preferences.
Earnings before interest and tax (EBIT) totaled €2.29 billion—slightly below analyst expectations—but the company’s leadership reaffirmed its long-term commitment to innovation, electrification, and global competitiveness.
Due to uncertainty around U.S. tariff policy, the company has temporarily withdrawn its annual outlook but noted that this decision reflects prudence rather than pessimism.
“As always, we remain focused on delivering exceptional vehicles while staying agile in an evolving global environment,” Mercedes-Benz stated.
