Mercedes-Benz Group said its first quarter 2026 performance was broadly in line with its full-year expectations, with support from financial discipline, free cash flow and demand for new models.
Group revenue for Q1 2026 was €31.60bn ($36.90bn), a year-on-year decline of 4.9%, while earnings before interest and taxes (EBIT) fell 16.8% to €1.90bn.
Net profit decreased 17.2% to €1.43bn.
The company said results remained resilient amid “intense competition and geopolitical and trade-related headwinds,” as it moved through a major product transition cycle.
Mercedes‑Benz Group finance and controlling management board member Harald Wilhelm said: “First quarter results keep us on track to deliver on our full-year guidance. Strong demand for our new products and healthy order books position us well for improved momentum in the second half of the year.
“Going forward, we will remain firmly focused on disciplined execution, ensuring a well-coordinated rollout of our new models while maintaining tight cost control to sustain profitability.”
At Mercedes-Benz Cars, adjusted EBIT was €933m, down 47.2% from a year earlier.
See also: Mercedes-Benz warns of weak China luxury car demand
Adjusted return on sales (RoS) was 4.1%, which was within its 3% to 5% full-year guidance range.
Unit sales at the division dropped 6% to 419,430 vehicles, as weaker demand in China was partly balanced by growth in Europe (+7%) and the US (+20%).
Excluding China, global car sales rose 5%.
The top end segment represented 14.7% of global sales, within the company’s 14% to 15% target range.
Battery electric vehicle (BEV) sales increased 8.7% globally and 34% in Europe.
The company said this was supported by demand for models including the electric CLA, GLC and GLB.
In China, Mercedes-Benz said market pressure continued because of competition and subdued demand during a model transition phase, though top end sales fell 3%, which the company said outperformed the broader market.
Mercedes-Benz Vans reported adjusted EBIT of €415m and an RoS of 10.1%, slightly above its full-year guidance range, despite pricing pressure and product mix effects.
The company said it was continuing its product rollout strategy under a plan to introduce more than 40 new models between 2025 and 2027.
Recent launches included updated top end models such as the S-Class, EQS, GLS and Mercedes-Maybach S-Class, as well as new Core and Entry segment vehicles including the electric C-Class, CLA and GLB.
The group also unveiled the electric VLE van.
Mercedes-Benz confirmed its full-year outlook, stating that it expects group revenue at prior-year levels and EBIT significantly above 2025, mainly because prior-year restructuring charges will not recur.
The company added that it continues to monitor geopolitical developments, including the conflict in the Middle East, for possible effects on consumer demand.
