By Dominic Chopping
Mercedes-Benz Group is scheduled to report results for the third quarter on Wednesday. Here is what you need to know.
REVENUE FORECAST: The German luxury-car company's group revenue is expected at 32.27 billion euros ($37.58 billion), according to a FactSet analysts poll, down from 34.53 billion euros in the third quarter of the prior year.
NET PROFIT FORECAST: Net profit is expected at 1.09 billion euros, down from 1.72 billion euros, according to FactSet.
Shares are down 7% over the past 12 months at 53.74 euros.
WHAT TO WATCH
--The company has guided to a full-year adjusted earnings before interest and taxes margin for cars at 4%-6% and has indicated the margin will land within that range in the third quarter. If it does, analysts at HSBC say the company could narrow the full-year margin range to 5%-6%.
--The company has also guided to full-year revenue that will be significantly lower than last year as tariffs hit sales, with second-half car sales expected at around the same level as in the first half.
--Mercedes recently announced overall third-quarter car sales fell 12% on year, with a 27% slump in car sales in China to 125,100 cars. The company expects around 600,000 car sales in China for the full year.
--Analysts at Jefferies say a recent, reassuring company commentary that reiterated margin resilience and confidence in continued cash generation should revive expectations for a resumption of buybacks. Especially as first-half free cash flow covered the full-year dividend, the bank added.
--If there are any early comments about 2026, UBS thinks they are going to be mixed, with a flattish volume trend, some price and currency headwinds and no positive mix impact until the second half of 2026.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
October 28, 2025 05:55 ET (09:55 GMT)
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