Mercedes-Benz Boosts Quarterly Profit Despite Lowering Annual Forecast

Mercedes-Benz Group reported a 22% increase in second-quarter operating profit, reaching €1.5 billion. This growth was driven by administrative and research cost-cutting, strong results from its vans and financial services units, and a €131 million gain from the planned sale of its leasing subsidiary, Athlon.

Despite the quarterly profit boost, the company lowered its full-year 2026 forecast for group revenue and car sales, expecting both to fall slightly below the previous year. The revision follows a 30% drop in second-quarter car sales in China, attributed to intense competition from local manufacturers. CFO Harald Wilhelm noted that the profit outlook would be further impacted by higher sales of more expensive electric vehicles in Europe.

To counter these challenges, the company is planning additional cost cuts at its German plants and expanding production in Poland and Hungary. Mercedes-Benz is also diversifying into the security and defense sector through a partnership with TYTAN to develop military systems based on the Sprinter and G-Class models.