Mercedes-Benz reports €1.5 billion Q2 operating profit, beating expectations amid cost reductions and strong financial services performance.
Mercedes-Benz shares surged as much as 5.9% after the automaker reported a 22% increase in second-quarter operating profit to €1.5 billion, despite a 3% revenue decline. The gain was driven by cost cuts in administrative and R&D spending, alongside strong earnings from financial services and vans units, including a €131 million gain from the planned sale of leasing subsidiary Athlon.
The results contrasted with broader struggles in the German automotive sector, where rivals like BMW have slashed outlooks due to pressure from Chinese competitors and tariff costs. Mercedes maintained its profit guidance for its core car business, posting a 4.0% adjusted return on sales, within its target range of 3% to 5%.
Shares later pared gains to 2.9% in late-morning trade, reflecting investor relief amid concerns over intensifying competition, particularly as Chinese automakers expand into Europe.