Mercedes 2025 earnings more than halve in year rocked by tariffs, China woes

Core Insights - Mercedes-Benz reported a 57% drop in full-year operating earnings for 2025, highlighting challenges from competition in China and high tariffs [1] - The company's earnings before interest and taxes (EBIT) were 5.8 billion euros ($6.88 billion), significantly below the forecast of 6.6 billion euros and down from 13.6 billion euros the previous year [1] - Revenue for the year was 132.2 billion euros, a 9% decrease year-on-year, and slightly below the expected 134 billion euros [1] Financial Performance - Operating earnings fell to 5.8 billion euros, a 57% decline compared to the previous year [1] - Revenue decreased to 132.2 billion euros, down 9% from the prior year [1] - The EBIT forecast was missed by 0.8 billion euros, indicating a more challenging financial environment than anticipated [1] Market Environment - The company faces stiff competition in the Chinese market, which has impacted its earnings [1] - High tariffs have added to the financial pressures on the company, contributing to the significant drop in earnings [1] - CEO Ola Kaellenius emphasized the company's focus on efficiency, speed, and flexibility in navigating a dynamic market environment [1]