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Mercedes-Benz Cuts Guidance on China Weakness, Higher Costs

Provided by Dow Jones Oct 27, 2026, 9:36:00 AM

By Dominic Chopping

Mercedes-Benz cut full-year earnings expectations as it contends with a deteriorating market in China and higher costs.

The German luxury automaker said Tuesday that it now expects an adjusted return on sales this year of 2% to 3%, down from previous guidance of between 3% and 5%.

Earnings before interest and tax are expected to land at the prior-year level of 5.82 billion euros ($6.5 billion), while the company previously expected a figure significantly above the prior-year level.

"In addition to an increasingly challenging market environment in China, Mercedes-Benz Group expects higher costs in the fourth quarter, including higher material costs," it said in a statement.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

October 27, 2026 05:36 ET (09:36 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

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