Financial resilience and robust free cash flow in Q1, strong demand for new models.

Mercedes-Benz Cars posted adjusted EBIT of €933 million and an adjusted return on sales (RoS) of 4.1% in the first quarter, well within the full-year guidance range (3% to 5%), without any separate adjustment for tariff effects.

Mercedes-Benz Cars sold 419,400 vehicles in the first quarter. Growth in Group sales in Europe (+7%) and the United States (+20%) partly offset declines in China. Excluding China, global car sales were up 5%. The Top-End segment accounted for 14.7% of global sales, placing it at the upper end of the 2026 aim of 14% to 15%.

In China, intense competition and subdued demand continued to weigh on the market amid a transition year marked by model changeovers across the portfolio. Mercedes Benz Top-End sales in China proved more resilient in the first quarter. With a 3% decline, Top-End sales outperformed the broader market trend. Mercedes-Benz maintained its leading position in the segment above RMB 1 million. At Auto China 2026, the company underlined China’s role as an innovation and technology hub and a key strategic market by unveiling the all-new electric GLC L as a long-wheelbase model. The GLC L combines leading AI on MB.OS and is living proof of co-creation with Chinese customers, based on Mercedes-Benz standards. It reflects the company’s comprehensive localisation strategy in cooperation with strong local partners and the acceleration of next-level localisation across the entire value chain. The model is part of a new generation of China-fit vehicles, with further models entering the market in the second half of the year.

Battery-electric vehicle (BEV) sales at Mercedes-Benz Cars rose strongly in Europe in the first quarter of 2026, increasing by 34%, with Germany up 36%. Electrified vehicles (xEV) accounted for 41% of sales in Europe and 19% globally. This performance was supported by strong customer demand for the all-new electric CLA, GLC and GLB, with BEV order intake in Europe more than doubling (+107% year‑on‑year). Following their recent world premieres, the all-new electric C-Class and the new EQS are set to further support Mercedes-Benz’s all-electric-growth, with the EQS introducing steer-by-wire as the first series-production vehicle from a German car manufacturer to offer this technology.

Mercedes-Benz Vans once again achieved double-digit adjusted RoS of 10.1% in the first quarter of 2026. Adjusted EBIT reached €415 million, primarily reflecting the market launch efforts for the new Van architecture as well as net pricing pressure and product mix effects, including the ramp-down of the small Vans. This was partly offset by an improvement in variable costs, including selling expenses, as well as an increased leasing contribution. Mercedes-Benz Vans sold 80,300 units in the first quarter of 2026, with stable development in the European market and eVans up by 29%.

In March, Mercedes Benz-Vans presented the expansion of its offering in the privately positioned van segment with the introduction of the VLE that combines the best of two worlds: the driving comfort and handling of a limousine with the spaciousness, versatility and flexibility of an MPV.

Mercedes-Benz Financial Services delivered a strong performance in the first quarter of 2026, with positive portfolio margin trends continuing from the previous year. Adjusted EBIT increased significantly by 44% to €413 million, driven by higher margins and improved cost efficiency. The adjusted return on equity (RoE) rose to 13.3%, exceeding the full-year guidance range of 10 to 12%.

Total contract volume stood at €130.1 billion at the end of the first quarter, in line with year end 2025 levels. This was mainly driven by positive exchange rate effects and growth in the United States, partly offset by developments in China. New business declined by 4% to €13.1 billion, reflecting market conditions in the automotive sector and currency effects. At the same time, the cost of credit risk remained elevated, reflecting ongoing macroeconomic headwinds.