MERCEDES BENZ GROUP AG Stock Price, News & Analysis

Mercedes-Benz Group reported strong Q1 2023 financials, with Industrial Free Cash Flow reaching €2.2 billion, surpassing market expectations of €1.2 billion.

The Automotive division saw an adjusted Return on Sales of 14.8%, beating the expected 13.4%. The Vans division achieved an impressive 15.6% Return on Sales, significantly above the forecast of 13.1%.

EBIT rose to €5.5 billion, exceeding the consensus of €4.9 billion, driven by strong performance in the Vans division.

The company noted robust growth in battery electric and Top-End Vehicles, reaffirming its resilience despite rising material costs and R&D expenses.

Full quarterly results will be released on April 28, 2023.

Mercedes-Benz has announced plans for its proprietary MB.OS operating system, designed to integrate various vehicle functions seamlessly. This system aims to enhance customer experiences with embedded Google features and superior infotainment options. The company is also advancing automated driving technology through partnerships with NVIDIA and Luminar, targeting enhanced SAE Level 2 and Level 3 functionalities. Notably, Mercedes-Benz anticipates software-enabled revenues to reach high single-digit billion EUR figures by the end of the decade, with a significant investment in software development and a focus on OTA updates to keep vehicles current.

Mercedes-Benz and Google have announced a strategic partnership to create a next-generation digital luxury car experience. This collaboration marks Mercedes-Benz as the first automaker to develop a branded navigation system utilizing Google Maps capabilities. Features will include real-time traffic information and automatic rerouting. Customers will initially access Place Details, offering information about over 200 million businesses. Both companies will also explore utilizing Google Cloud for AI, data analytics, and infrastructure solutions to enhance customer experiences and support autonomous driving.

Mercedes-Benz Group AG reported a notable 28% increase in EBIT to €20.5 billion for FY 2022, alongside a 12% rise in revenue to €150.0 billion. The adjusted Return on Sales (RoS) for Mercedes-Benz Cars improved to 14.6%, while Mercedes-Benz Vans saw a RoS of 11.2%. Despite macro challenges, including supply chain issues and geopolitical tensions, the company continued its transformation, expanding its electric vehicle offerings. A proposed dividend of €5.20 per share and a €4 billion share buyback program were announced, enhancing shareholder value. The company anticipates flat revenue and a slight decline in EBIT for FY 2023.

The Supervisory Board of Mercedes-Benz Group AG has reappointed Renata Jungo Brüngger as a member of the Board of Management until December 31, 2024. Brüngger has been with the company since January 1, 2016, overseeing Integrity and Legal Affairs, and contributing significantly to sustainability initiatives. This decision aligns with new guidelines for board appointments, allowing contract extensions based on age. The company's commitment to sustainability and legal integrity continues to be highlighted as crucial for long-term success. Brüngger's prior term was set to expire at the end of 2023.

Mercedes-Benz has achieved a significant milestone by self-certifying its DRIVE PILOT system in Nevada for SAE Level 3 conditionally automated driving, making it the first automotive company to do so in the U.S.. The DRIVE PILOT feature will be available for model year 2024 S-Class and EQS Sedan models, with first deliveries scheduled for the second half of 2023. The system allows drivers to hand over control under specific conditions while maintaining high safety standards through advanced sensors, including LiDAR. Mercedes-Benz plans to expand certification to California later this year, further establishing its leadership in the automated driving sector.

Mercedes-Benz has unveiled plans for a global branded high-power charging network, starting in North America in partnership with MN8 Energy and ChargePoint. This network, set to be completed by 2027, will feature over 400 hubs and 2,500 chargers, enhancing accessibility for electric vehicle owners. Additionally, the CES 2023 showcased the VISION EQXX, the company's most efficient vehicle. Other highlights include the introduction of Automatic Lane Change technology and SAE Level 3 automated driving, set to roll out in Nevada and California in 2023.

Mercedes-Benz Group AG reported a strong performance in Q3 2022, with revenue rising 19% to €37.7 billion and EBIT up 83% to €5.2 billion compared to Q3 2021. The adjusted Return on Sales (RoS) for Mercedes-Benz Cars reached 14.5%, while Vans recorded 12.7%. BEV sales doubled, underscoring the company's commitment to electrification. Despite challenges from semiconductor shortages and global supply chain issues, the outlook has improved, projecting RoS for Cars at 13%-15% for the full year.