{
  "id": 16860788,
  "title": "Mercedes-Benz cars Q3 adjusted profit halves as China slump bites",
  "url": "https://urgent.news/2026/10/28/mercedes-benz-cars-q3-adjusted-profit-halves-as-china-slump-bites",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-28T06:20:33.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/earnings/mercedesbenz-cars-q3-adjusted-profit-halves-as-china-slump-bites-4977528"
  },
  "original_language": "en",
  "account": "Mercedes-Benz reported a halved adjusted operating profit in Q3 due to a slump in China sales, the carmaker announced on Wednesday, just after slashing its full-year profit forecasts. Adjusted EBIT for Mercedes-Benz Cars fell to €560 million, down from €1.14 billion the previous year, and the unit turned negative cash flow. The company also revealed it will reintroduce a voluntary severance program for German office staff starting December. Mercedes-Benz now anticipates a 2% to 3% adjusted margin for 2026, a drop from the previous 3% to 5%, due to a more challenging China market and increased costs for raw materials and product-cycle measures. Group EBIT is now forecast to remain at last year's level, unlike the significant increase before. Industrial free cash flow is expected to be significantly below last year's, having already been below. Capital spending on cars is projected to be well below the previous year's level, while van sales are expected to match last year's instead of slightly outperforming. Adjusted profit margin for cars was 2.5%, compared to 4.8% a year earlier and the consensus of 2.4%. Cash flow before interest and taxes was negative €171 million, while last year's figure was positive €1.36 billion. Car sales declined by 8% to 407,232 vehicles from 441,453, attributed to tough market conditions and intense competition in China. Sales in Europe rose by 5%, Germany by 13%, and the United States by 6%. Battery-electric sales reached a quarterly record, up 61%. Industrial free cash flow was €172 million in the quarter, compared to €1.37 billion the previous year and the consensus of €422 million, as higher new-vehicle stocks tied up cash. The company anticipates these vehicles to be delivered to customers in the coming months. Since June, Mercedes-Benz has intensified productivity measures, focusing on German sites. Cash outflows for restructuring amounted to about €1.1 billion in the first nine months, primarily due to the severance program in Germany. Group EBIT rose to €1.77 billion from €0.75 billion the previous year and the consensus of €1.6 billion, mainly due to smaller adjustments than in the year-earlier quarter. Adjusted group EBIT fell by 15% to €1.78 billion from €2.10 billion. Van sales margin was 9.4% compared to the 9.1% consensus. Financial Services' adjusted return on equity was 13.8%, compared to the 12.4% consensus.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Quartz",
        "title": "Mercedes-Benz is cutting its profit forecast as China sales slump, costs rise",
        "url": "https://urgent.news/2026/10/27/mercedes-benz-is-cutting-its-profit-forecast-as-china-sales-slump",
        "published": "2026-10-27T12:10:26.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}