Mercedes: Some positive notes amidst a cacophony of challenges

研报英文原文证据摘录

Mercedes: Some positive notes amidst a cacophony of challenges

rgets an increase in local-for-local production from 60% to 70% by 2027, reducing currency exposure,

logistics costs, and tariff risk while speeding up response to regional demand shifts. Expanded capacity at Kecskemét

(Hungary) enables European production of electric C-Class, GLC and compact G derivatives, enhancing flexibility and

resilience of the network and supporting margin via lower unit cost. Under the “Next Level Production” strategy, Mercedes

will introduce more than 40 vehicles across its global network in three years, with mixed BEV/ICE/hybrid assembly on the

same lines to maximize asset utilization.

• Mercedes uses Daimler Truck stake disposals and other M&A (such as the Athlon sale) to boost free cash flow and net

cash. CFO Harald Wilhelm explicitly highlighted the “first disposals” of €417m of the Daimler Truck stake in April and

June of 2Q26, and then noted that there had been additional divestments of around €600mn in July, indicating a phased,

opportunistic reduction of the holding rather than a one-off exit. These stake sales are a component of Mercedes’ broader

capital allocation strategy, supporting both shareholder returns (€5bn cash return in 1H26 composed of dividends and share

buybacks) and an additional €1bn buyback commitment by the 2027 AGM. Harald Wilhelm stressed flexibility in how Daimler

Truck shares are sold (piecemeal or potential ABBs, market condition dependent), preserving optionality on timing, discount,

and market impact.

QUICK TAKE RECAP

The results were ahead of the company compiled consensus, with a Cars adjusted margin at 4.0%, higher than the 3.5% consensus

and well within the 3-5% FY26 guidance range, which was reiterated today.