Mercedes-Benz Group AG delivered solid financial results for 2024 and unveiled a multi-year product and performance enhancement plan to strengthen the company’s resilience.
“Mercedes-Benz Group delivered solid results in a very challenging environment thanks to a range of outstanding products and strict cost discipline. To ensure the company’s future competitiveness in an increasingly uncertain world, we are taking steps to make the company leaner, faster and stronger, while readying an intense product launch campaign for multiple new vehicles starting with the all new CLA.”
Ola Kaellenius, Chief Executive Officer of Mercedes-Benz Group AG
Mercedes-Benz’s product launch programme starts in 2025 with the CLA, followed by a major upgrade of the S-Class in 2026, an all-electric GLC and C-Class, as well as a string of BEV and electrified high-tech ICE launches at Mercedes-AMG. Overall, sales are expected to gain traction after dozens of new or refreshed models reach the markets until 2027.
To strengthen its competitiveness and resilience, Mercedes-Benz has launched a comprehensive performance enhancement programme – known as Next Level Performance. Through a set of initiatives, Mercedes-Benz Group aims to further leverage growth potential through its direct sales channel, elevate the customer service experience to a new level and to boost revenue quality. In addition, the company will take steps to make its global production footprint more efficient and more flexible. The company plans to cut production costs by 10% until 2027. Material costs will be tackled in close collaboration with suppliers and fixed-cost reductions will continue through to 2027, building on significant progress achieved over the past four years.
Technology and design
Going forward a coherent design language will be used across the entire portfolio. BEV and electrified high-tech ICE models will exploit their respective strengths, without sacrificing space, elegance, convenience or efficiency. Thanks to intelligent modularisation, Mercedes-Benz will offer a unified tech stack in infotainment and Advanced Driver Assistance Systems (ADAS), a consistent customer experience as well as best-in-class roominess and perfect proportions while keeping a tight grip on costs and manufacturing flexibility, allowing Mercedes-Benz to tailor products to specific markets like China.
2024 results
Group earnings before interest and taxes (EBIT) reached €13.6 billion (2023: €19.7 billion). Group revenues came in at €145.6 billion (2023: €152.4 billion). The free cash flow from the industrial business reached €9.2 billion (2023: €11.3 billion) mainly due to a very high cash conversion rate at Cars and Vans. The net liquidity of the industrial business reached €31.4 billion (end of 2023: €31.1 billion) remaining on a similar level as the prior year, demonstrating strong cash generation at work, despite more than €10 billion cashout for dividend payments and share buybacks in 2024.
| Mercedes-Benz Group | FY 2024 | FY 2023 | Change 24/23 |
| Revenue* | 145,594 | 152,390 | -4.5% |
| Earnings before interest and taxes (EBIT)* | 13,599 | 19,660 | -30.8% |
| Net profit/loss* | 10,409 | 14,531 | -28.4% |
| Free cash flow industrial business (FCF)* | 9,152 | 11,316 | -19.1% |
| Earnings per share (EPS) in EUR | 10.19 | 13.46 | -24.3% |
* in millions of €
Divisional results
The adjusted EBIT at Mercedes-Benz Cars fell to €8.7 billion (2023: €14.3 billion) on lower volumes, particularly in China, negative net pricing and an unfavourable model mix. The adjusted RoS in 2024 was 8.1% (2023: 12.6%). Research and Development costs remained on a high level due to investments for future platforms and technologies, particularly for MB.OS, while investments in PP&E remained at the previous year’s level.
| Mercedes-Benz Cars | FY 2024 | FY 2023 | Change 24/23 |
| Unit Sales | 1,983,403 | 2,044,051 | -3.0% |
| – thereof xEV | 367,610 | 401,943 | -8.5% |
| – thereof BEV | 185,059 | 240,668 | -23.1% |
| Share of xEV in unit sales in % | 18.5 | 19.7 | – |
| Revenue* | 107,761 | 112,756 | -4.4% |
| Earnings before interest and taxes (EBIT)* | 8,460 | 14,224 | -40.5% |
| Adjusted earnings before interest and taxes (EBIT)* | 8,677 | 14,252 | -39.1% |
| Adjusted return on sales (RoS) in % | 8.1 | 12.6 | -4.5%pts |
| Cash flow before interest and taxes (CFBIT)* | 8,963 | 12,336 | -27.3% |
| Adjusted cash conversion rate (CCR) | 1.0 | 0.9 | – |
* in millions of €
Adjusted EBIT at Mercedes-Benz Vans reached €2.8 billion (2023: €3.1 billion) and the adjusted RoS remained almost at the previous year’s level, at 14.6% (2023: 15.1%). A healthy mix supported by improved product substance partially offset lower overall sales. Furthermore, in the challenging environment, the comprehensive cost initiative further supported profitability. Research and Development costs remained on a high level due to investments into the new, further flexibilised van architecture with two variants: Van Electric Architecture (VAN.EA) for BEV models and Van Combustion Architecture (VAN.CA) for ICE models.
| Mercedes-Benz Vans | FY 2024 | FY 2023 | Change 24/23 |
| Unit Sales | 405,610 | 447,790 | -9.4% |
| – thereof BEV | 19,516 | 22,666 | -13.9% |
| Share of BEV in unit sales in % | 4.8 | 5.1 | – |
| Revenue* | 19,320 | 20,288 | -4.8% |
| Earnings before interest and taxes (EBIT)* | 2,932 | 3,138 | -6.6% |
| Adjusted earnings before interest and taxes (EBIT) * | 2,825 | 3,063 | -7.8% |
| Adjusted return on sales (RoS) in % | 14.6 | 15.1 | -0.5%pts |
| Cash flow before interest and taxes (CFBIT)* | 2,705 | 2,817 | -4.0% |
| Adjusted cash conversion rate (CCR) | 1.0 | 1.0 | – |
* in millions of €
Mercedes-Benz Mobility remains a strong partner for Mercedes-Benz Cars and Vans. In 2024, Mercedes-Benz Mobility´s total portfolio amounted to €138.1 billion (2023: €135.0 billion) while new business declined to €59.5 billion (2023: €62.0 billion). The adjusted EBIT came in at €1.1 billion (2023: €1.7 billion) and was impacted mainly due to a reduced interest margin resulting from interest rate developments and increased competition in the financial services sector, especially in China. As a result, the adjusted return on equity (RoE) declined to 8.7% (2023: 12.3%).
| Mercedes-Benz Mobility | FY 2024 | FY 2023 | Change 24/23 |
| Revenue* | 25,083 | 25,571 | -1.9% |
| New business* | 59,486 | 62,014 | -4.1% |
| Contract volume (December, 31)* | 138,095 | 135,027 | +2.3% |
| Earnings before interest and taxes (EBIT)* | 1,134 | 1,302 | -12.9% |
| Adjusted earnings before interest and taxes (EBIT) * | 1,134 | 1,695 | -33.1% |
| Adjusted return on equity (RoE) in % | 8.7 | 12.3 | -3.6%pts |
* in millions of €
Dividend
At the Annual General Meeting on May 7, 2025, the Board of Management and the Supervisory Board will propose a dividend of €4.30 per share (2023: €5.30).
Share buyback policy
Mercedes-Benz has decided to buy back own shares worth up to a maximum €5 billion (not including incidental costs) on the stock exchange over a period of up to 24 months, subject to the renewal of the authorization by the Annual General Meeting in May 2025 to buy back own shares up to a maximum of 10% of the share capital. This buyback is based on and in line with the existing buyback policy, that any future free cash flow from the industrial business, (as available post potential small-scale M&A) generated beyond the approximately 40% dividend payout ratio of Group Net Income, shall be used to fund share buybacks with the purpose of redeeming shares.
Outlook
The Mercedes-Benz Group expects Group revenue in 2025 to be slightly below the prior-year level. In a market environment that remains challenging, Group EBIT is expected to be significantly below the previous year’s level resulting out of divisional guidances. Group free cash flow from the industrial business is seen significantly below the strong level of 2024, due to lower EBIT at Mercedes-Benz Cars and Mercedes-Benz Vans and lower CCR at Mercedes-Benz Vans.
| Outlook | FY 2024 Actuals | FY 2025 Guidance | ||
| Unit Sales | Mercedes-Benz Cars | 1,983k units | Slightly below | |
| Mercedes-Benz Vans | 406k units | Slightly below | ||
| xEV Share | Mercedes-Benz Cars (xEV) | 19% | 20 to 22% | |
| Mercedes-Benz Vans (xEV) | 5% | 8 to 10% | ||
| Adjusted* return on sales (RoS) | Mercedes-Benz Cars | 8.1% | 6 to 8% | |
| Mercedes-Benz Vans | 14.6% | 10 to 12% | ||
| Mercedes-Benz Mobility (RoE) | 8.7% | 8 to 9% | ||
| Adjusted cash conversion rate (CCR) | Mercedes-Benz Cars | 1.0 | 0.9 to 1.1 | |
| Mercedes-Benz Vans | 1.0 | 0.5 to 0.7 | ||
| Investment in pp&e | Mercedes-Benz Cars | €3.4 billion | Significantly above | |
| Mercedes-Benz Vans | €0.6 billion | Significantly above | ||
| R&D expenditure | Mercedes-Benz Cars | €8.7 billion | At prior-year level | |
| Mercedes-Benz Vans | €1.0 billion | Significantly above | ||
* The adjustments include material adjustments if they lead to significant effects in a reporting period. These material adjustments relate in particular to legal proceedings and related measures, restructuring measures and M&A transactions.
SOURCE: Mercedes-Benz
