Mercedes sets buyback, affirms guide despite third quarter profit fall

Mercedes-Benz Group AG on Wednesday reported a fall in third quarter profit, as the carmaker grappled with tariffs, unfavourable foreign exchange rates and a EUR1.35 billion hit to its bottom line from costs related to job cuts.

The Munich, Germany-based company said results were in line with annual guidance, however, and it added that it will proceed with a share buyback worth up to EUR2 billion.

Shares in the company raced 6.7% higher to EUR58.30 each in Frankfurt during early dealings on Wednesday.

Mercedes said net profit in the third quarter of 2025 declined 31% to EUR1.19 billion from EUR1.72 billion a year prior. Revenue fell 6.9% to EUR32.15 billion from EUR34.53 billion.

In the key Mercedes-Benz Cars arm, revenue was 7.3% lower on-year at EUR23.74 billion, while in Mercedes-Benz Vans, it declined by 13% to EUR4.04 billion. Mercedes-Benz Mobility revenue fell 3.4% to EUR5.81 billion. Mobility provides financing, leasing and insurance services.

"Our third-quarter results are in line with our full-year guidance. Our biggest product and tech launch programme is well on track," Chief Executive Officer Ola Kallenius said.

The company booked a EUR1.35 billion profit hit from its "workforce adjustment programme in Germany and optimisation programmes abroad".

Mercedes also said its third quarter suffered from "lower sales volume, increased expenses due to tariffs and negative development of foreign exchange rates".

Looking ahead, it still expects full-year revenue to be "significantly below" the EUR145.59 billion achieved in 2024.

Earnings before interest and tax will also be "significantly below", it added. Its Ebit in 2024 was EUR13.60 billion.

Its third quarter Ebit fell 70% to EUR750 million from EUR2.52 billion.

Mercedes added that it plans to kick off a share buyback, as part of its capital allocation policy. Over the next 12 months, it will repurchase up to EUR2 billion of shares.