Mercedes-Benz Continues Aggressive Share Buyback Amid Market Challenges

Mercedes-Benz continues its share buyback program despite a 40% drop in adjusted EBIT. The automaker also confirms a 3.50 euro dividend and upcoming GLS/GLE model updates.

Despite the lingering headwinds from a difficult 2025 fiscal year, Mercedes-Benz Group AG is pressing ahead with its substantial share repurchase initiative. The company's latest weekly disclosure reveals it acquired 233,124 of its own ordinary shares between March 20 and March 25. This activity brings the total volume purchased since the program commenced on March 17 to nearly 950,000 shares.

Financial Performance Provides Context

The decision to return capital to shareholders via buybacks unfolds against a backdrop of softened financial results. Group revenue for the concluded fiscal year declined by approximately nine percent to 132.2 billion euros. More significantly, the adjusted EBIT (earnings before interest and taxes) contracted by almost 40 percent, landing at 8.2 billion euros. A primary factor behind this pressure has been persistently weak sales in the critical Chinese market.

This operational strain is clearly reflected in the equity's performance. Since the start of the year, the share price has declined by close to 17 percent. It currently trades around 51 euros, a level notably beneath its 200-day moving average of 55.78 euros.

Dividend Commitment and Forthcoming Product Launches

Even amidst this challenging environment, the automaker remains committed to its shareholder returns policy. The company has announced a planned dividend of 3.50 euros per share for 2025. Investors should note the ex-dividend date is set for April 17, 2026.

Shortly before that, on March 31, Mercedes-Benz will unveil refreshed versions of three key models—the GLS, GLE, and GLE Coupé—via a live stream event. These model lines are central to the lucrative premium SUV segment. The market's assessment of this product offensive will become clearer after April 17, when the impact of the new models can be evaluated in conjunction with the dividend distribution.