Mercedes-Benz Q3 earnings plunges amid China sales slump and US tariffs, but share price rises

Mercedes-Benz Group AG announced a sharp decline in its third-quarter 2025 financial results, hit by weakened sales volumes, rising US tariffs, and ongoing restructuring costs.

Net profit at the Stuttgart-based company fell 30.8 percent to hit 1.19 billion euros ($1.38 billion), beating analyst expectations of 1.09 billion euros in a poll by financial data firm FactSet, and earnings per share dropped to €1.22 from €1.81.

The company’s revenue declined 7% year-over-year to €32.15 billion, reflecting reduced vehicle sales in key markets, particularly China and Europe. The Mercedes-Benz Cars segment experienced a 7% revenue drop with a 12% decline in sales volume to 441,453 units. Vans sales also fell 13% to €4.04 billion.


It experienced a notable decline in its sales volume in China during Q3 2025, with a 27% decrease compared to the same period last year. Also during this period, US tariffs on imported cars and parts reached as high as 25% under earlier trade policies.

Stock rise and fall

Mercedes-Benz's stock price experienced a 7% decline over the past 12 months, from a high of approximately €63.17 in early 2025 to its current standing of around €57 (at the time of writing), representing a fall of roughly 8%.

After the Q3 2025 earnings report, shares saw a modest uptick following the release, but the overall trend remains cautious given the deep profit decline and market pressures. The latest stock price stands at approximately €57.96, reflecting recent gains of about 6% at the time of writing.

CEO Ola Källenius emphasized that despite challenging market conditions and costs related to workforce adjustments—€876 million in restructuring expenses alone in Q3—the company remains on track with its product launch program, including new electric models such as the CLA and GLC, which saw strong demand.

Mercedes-Benz expects to achieve 5 billion euros in cost savings by 2027 through its ongoing transformation initiatives.

Free cash flow from the industrial business was €1.37 billion, down 43% from last year, but net liquidity improved to €32.3 billion by the end of Q3, providing stability amid uncertainty.