Mercedes-Benz Finance North America: Solid 2Q26 Results; Competition in China Remains Fierce

研报英文原文证据摘录

Mercedes-Benz Finance North America: Solid 2Q26 Results; Competition in China Remains Fierce

aken a meaningful amount of share from incumbent

OEMs. Mercedes and other OEMs competing in China are turning to comprehensive

portfolio refreshes in the region to reinforce their existing market share there, which we

believe may prove difficult given the existing competitive price dynamics.

OUR TAKE:

• Solid 2Q26 results overall but the China auto market competitiveness remains in-

focus. Mercedes’ adjusted EBIT outperformance and strong Financial Services results

demonstrate continued cost execution and captive-finance resilience, amid another

notable deterioration in the China auto market that provides the most material read-

through of results, in our view. Industrial FCF remained positive, but Daimler Truck share

sale proceeds and dividends contributed €755 million to the company’s adjusted

definition (€521 million Industrial free cash flow excluding the Daimler Truck share sale

and dividend would have underwhelmed €707 million consensus), while launch

investments and return of capital to shareholders (through share repurchases and

dividends) contributed to a ~€3.4 billion decline in Industrial net liquidity on a sequential

basis (to ~€30.4 billion). The company retained Group EBIT and Industrial FCF guidance

(which remains largely qualitative), but the lower Cars volume and Group revenue

outlook, together with its expectation for Cars adjusted RoS (margins) in the lower half

of the 3-5% range, indicates a challenging 2H26 outlook. Mercedes expects new vehicle

launches, mix, and pricing benefits to build primarily in 4Q26, while raw materials,

energy, freight, tariffs, and BEV mix remain meaningful offsets, leading to elevated

execution risk in the near-term.