Mercedes-Benz announced on Thursday that its operating profit for 2025 fell by 57% compared to the previous year, highlighting the severe challenges the company faced during a difficult period. These challenges included intense competition in the Chinese market, U.S. tariffs, and unfavorable currency exchange effects.

The company reported group earnings before interest and taxes (EBIT) of €5.8 billion (approximately $6.9 billion) for 2025. This figure fell short of the €6.6 billion average forecast from analysts surveyed by Visible Alpha and was significantly lower than the €13.6 billion reported a year earlier.

Revenue for 2025 amounted to €132.2 billion, a 9% decrease from the previous year and slightly below the expected €134 billion.

Ola Källenius, the Chief Executive Officer of the company, stated, "In a market environment full of changes, our financial performance still met expectations, thanks to our strong focus on efficiency, speed, and flexibility."

Mercedes disclosed the full-year adjusted return on sales for its core passenger car business at 5%, which falls within the targeted range of 4% to 6%.

The company had initially projected a margin between 6% and 8% for 2025 but revised this forecast in April. The revision occurred while the company was assessing the impact of tariffs implemented by U.S. President Donald Trump.

According to the statement, the company aims to increase its margin to between 8% and 10% in the medium term through a series of product launches and "relentless cost control."