Mercedes-Benz’s new electric C-Class redefines the segment

Mercedes-Benz has accelerated its model offensive, posting a second-quarter revenue of €32.1 billion (down from €33.2 billion in Q2 2025) and group EBIT of €1.5 billion (up from €1.3 billion). The company maintained its full-year adjusted EBIT guidance while raising its BEV sales outlook to 23–25 % of total car sales. The new fully electric C 400 4MATIC delivers class-leading efficiency with combined energy consumption of 18.6–14.2 kWh/100 km and zero tailpipe CO₂ emissions. Mercedes-Benz Cars’ adjusted EBIT margin came in at 4.0 %, within the guided 3–5 % range, despite headwinds from China’s weaker demand and an unfavourable model mix. BEV sales surged 51 % year-over-year, with Europe up 87 %, while the BEV order intake in Europe more than doubled in the quarter. The division also reported a 7 % reduction in cost of sales thanks to Next Level Performance efficiency measures. Mercedes-Benz Vans delivered a benchmark result with an adjusted EBIT margin of 10.2 %, while Financial Services posted a 70 % jump in adjusted EBIT to €492 million and an adjusted return on equity of 15.3 %. The group’s industrial business ended the quarter with net liquidity of €30.4 billion and a second-quarter free cash flow of €1.1 billion. For the first half of 2026, free cash flow stood at €3.0 billion, including €1.1 billion in severance outflows tied to NLP. Despite dividend payments and share buybacks totalling €5 billion in H1, net liquidity remained robust at €30.4 billion. Mercedes-Benz confirmed its full-year adjusted EBIT guidance and raised its Financial Services adjusted ROE guidance to 12–14 %, while reaffirming its industrial free cash flow outlook including M&A. Ola Källenius, chairman of the board, said: “Even in a challenging market environment we stayed on course in Q2 and accelerated our model offensive. Customer response to the new models is very positive: BEV car sales rose 51 %, and BEV order intake in Europe more than doubled in the quarter. In the second half we’re focused on bringing more new models to customers and further improving cost position and productivity.”