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Mercedes-Benz posts 22% Q2 EBIT rise, cuts full-year sales outlook on China

Mercedes-Benz posts 22% Q2 EBIT rise, cuts full-year sales outlook on China

Mercedes lowered its 2026 sales and revenue outlook as China weakens, while Shimano raised profit guidance and increased bicycle component prices to counter higher input costs.

Fact Check
All components of the claim are directly confirmed. The official Mercedes-Benz Business Wire release shows Group EBIT rising from €1.3B to €1.5B (a ~22% increase, consistent with Reuters' explicit '22%'). The release confirms Cars adjusted RoS guidance was maintained (3-5%), that the full-year outlook now expects unit sales and Group revenue slightly below 2025, and that BEV sales rose 51% and Financial Services EBIT surged 70%. China weakness is explicitly cited (China sales -30%). WSJ independently confirms the sales guidance cut driven by China. There is no conflicting evidence.
    Reference: 123
Summary

Mercedes-Benz reported a 22% rise in second-quarter group EBIT to €1.547 billion, supported by cost cuts, but lowered its full-year sales and revenue outlook as weak demand and fierce competition in China weighed on its core passenger car business. Group revenue fell 3% to €32.061 billion, first-half revenue dropped 4% to €63.663 billion, and first-half net profit declined 6% to €2.519 billion. Adjusted EBIT in the passenger car division fell 26% to €909 million, while a €704 million impairment tied to investments in China pushed reported operating profit there down to €49 million. Mercedes said battery electric vehicle sales in the passenger car segment rose 51% year on year and increased its full-year new energy vehicle sales mix target to 23%-25%, while warning that price competition from local manufacturers in China's luxury market will remain intense. Shimano, meanwhile, raised its full-year net profit forecast after second-quarter operating profit jumped 40.6% to ¥16.8 billion, helped by foreign exchange gains and progress in inventory adjustments. The bicycle component maker lifted its annual revenue forecast to ¥491 billion, recurring profit to ¥56 billion and net profit to ¥43 billion. It also said it will raise prices on all bicycle components by 3% from August to offset about ¥2 billion of roughly ¥4 billion in expected additional annual costs from higher raw material prices and supplier price hikes. Shimano President Taizo Shimano said inventory adjustments are progressing, but rising prices are weighing on consumer spending.

Terms & Concepts
  • EBIT: Earnings before interest and taxes, a measure of operating profit.
  • Battery electric vehicle: A vehicle powered entirely by electricity stored in batteries.
  • Impairment charge: An accounting write-down that reduces the stated value of an asset or investment.