Mercedes cuts 2026 margin estimates for the auto sector, weighs on the sector on the stock market

Mercedes has revised its full-year adjusted operating margin forecast downwards for the automotive sector.

The German group now expects an adjusted auto operating margin of between 2% and 3%, compared to the previous 3%-5%. However, it maintains its estimate of an adjusted operating margin in the Commercial Vehicles segment of between 8% and 10%. In the third quarter, Mercedes recorded an adjusted operating margin in the passenger car segment of 2.5% and 9.4% in commercial vehicles, an operating profit of 1.77 billion euros and an industrial cash flow of 172 million.

The cut in guidance not only weighs on the car manufacturer's stock on the stock exchange but affects the entire sector with losses in Frankfurt also for Volkswagen and BMW and in Paris and Milan for Stellantis.