Mercedes-Benz marginally misses Q3 revenue estimates

Overview

• German luxury automaker's Q3 revenue slightly missed analyst expectations

• Adjusted EBIT for Mercedes-Benz Cars fell 51% yr/yr to €560 mln, return on sales at 2.5%; group adjusted EBIT down 15%

• Company cut 2026 guidance for Mercedes-Benz Cars adjusted return on sales to 2-3%

Outlook

• Mercedes-Benz Cars cuts 2026 adjusted return on sales outlook to 2-3% from 3-5%

• FY Group EBIT now seen at prior-year level, versus earlier forecast of significantly above

• Free cash flow of industrial business expected significantly below prior-year level

Result Drivers

• CHINA MARKET PRESSURE - Co said challenging market conditions and intensifying competition in China weighed on Mercedes-Benz Cars results

• PRODUCT LAUNCH COSTS - Higher spending for market-launch campaigns and product lifecycle measures impacted Mercedes-Benz Cars earnings

• SALES GROWTH OUTSIDE CHINA - Co said higher unit sales in Europe and the United States supported earnings

Company press release: Full Story

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 11 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the auto & truck manufacturers peer group is "buy."

• Wall Street's median 12-month price target for Mercedes-Benz Group AG is €51.00, about 28.2% above its October 27 closing price of €39.78

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)