(Update: Mercedes losses significantly reduced, VW and Porsche in positive territory, more comments.)
FRANKFURT (dpa-AFX) - Automotive stocks found themselves on the losing side of the DAX on Thursday, mainly due to Mercedes-Benz. Following the release of its quarterly figures and outlook, shares of the premium carmaker came under pressure, falling by more than five percent at times. Only at their lowest point since the end of October, and around the 200-day moving average currently at €54.63, did they manage to stabilize.
Most recently, Mercedes-Benz shares pared losses to just 1.5 percent at a price of €57.11. Shares of other German automakers were also affected, though BMW managed to reduce its peak loss of up to 2.8 percent to just 0.7 percent. VW and Porsche AG even managed to move into positive territory in an overall improving market environment. The DAX rose by 1.3 percent, heading toward a record high.
According to experts at Index-Radar, the news from Mercedes fits the industry narrative that has persisted for some time. "The combination of massively increasing investments in electromobility and software architecture, growing competitive pressure – especially from Asia – as well as structural margin risks, is sustainably weighing on visibility," the experts wrote on Thursday. The technological transformation is tying up capital, while the sector is also grappling with pricing pressure and fluctuations in demand.
Mercedes-Benz reported a sharp drop in profits for 2025. Patrick Hummel from UBS pointed to a "very weak fourth quarter." The adjusted operating result (Ebit) missed consensus estimates by 29 percent in the final quarter, commented analyst Stephen Reitman from Bernstein Research, noting that only revenue figures looked better.
The performance of the core passenger car division last year was seen as disappointing, and as a result, the carmaker has set only cautious targets for the new year. The upper end of the margin target range, at 5 percent, is below consensus, Reitman wrote. According to analyst Tom Narayan from Canadian bank RBC, there is caution regarding business in China and the USA – the latter due to tariffs.
The plan to reduce the Mercedes dividend paid to shareholders for 2025 from €4.30 to €3.50 was not a drag. The cut was not as drastic as expected, traders noted. UBS expert Hummel described the payout, together with cash developments, as solid. Philippe Houchois from Jefferies even called the cash flow target for 2026 "encouraging" for a year of transition./tih/men/mis
