Mercedes-Benz recorded €750 million in profit / Depositphotos
The German automotive behemoth, Mercedes-Benz, declared a considerable downturn in operating earnings for the third trimester of 2025. However, the firm stood by its monetary predictions for the ongoing year. It also gave the green light to the initiation of a stock repurchase initiative worth around 2 billion euros, planned to commence in November.
This information is provided by Delo.ua, citing a report from the Financial Times.
Earnings took a hit due to reorganization expenditures, soft demand within the Chinese marketplace, novel US levies, and the requirement to establish buffers to address prospective unlawful car sales in the United Kingdom.
Throughout the period spanning July to September, the collective registered gains prior to interest and taxation totaling 750 million euros, denoting a 70% reduction compared to the corresponding timeframe of the prior year.
Nevertheless, the company stood firm on its yearly outlook and stated its intention to initiate a formerly sanctioned share buyback strategy valued at up to 2 billion euros in November. Following this revelation, its stock experienced a 6% surge in early trading on Wednesday.
The profit decrease stemmed from the expenses tied to an extensive restructuring scheme rolled out during the current year. The company indicated that workforce reductions in Germany, alongside restructuring endeavors abroad, amounted to 876 million euros for the quarter.
Further compounding the situation, Mercedes-Benz’s overall global sales witnessed a 12% dip during the quarter, with sales within China, a pivotal market, declining by 27%. CEO Ola Kallenius conceded that the marketplace is poised to remain “highly competitive.”
Additionally, a sum of €422 million was earmarked to tackle potential liabilities connected to accusations regarding the improper selling of automotive loans in the UK.
On top of that, tariffs levied by President Donald Trump have lessened Mercedes’ operational margin by 1.5 percentage points within its automotive business. Sales volumes within the United States showed a 17% fall.
As a reminder, back in August, the pension fund associated with the German carmaker Mercedes-Benz divested a portion of its holdings in Japan’s Nissan Motor Co., amounting to 47.83 billion yen ($324.65 million). According to a representative from Mercedes-Benz on August 25, the fund had intentions to offload its 3.8% ownership stake in Nissan. The stake, initially integrated into the German company’s pension holdings in 2016, lacks strategic importance, as stated by a Mercedes-Benz spokesperson, who described the choice to sell as “a streamlining of the portfolio.”
