Mercedes-Benz Shares Stuck Near Lows as €794M Buyback Fails to Offset Margin Woes
30.06.2026 - 16:07:29 | boerse-global.de
The centenary of the merger that created Mercedes-Benz has arrived not with champagne but with an austerity memo. On Tuesday, CEO Ola Källenius and HR chief Britta Seeger unveiled a sweeping cost-cutting program targeting all 110,000 German employees. Workers face longer hours for the same pay, deep cuts to special payments, and a unilateral deferral of a previously agreed tariff payment. The group also plans to shift more functions abroad and streamline administrative structures.
The stock market’s response has been largely indifferent. Shares changed hands at €42.88, barely 0.55% above the 52-week low touched on 29 June 2026, and have shed roughly 30% since the start of the year. A €794 million share buyback programme that saw Mercedes repurchase 14 million of its own shares between November 2025 and the end of March has done little to arrest the decline. The stock now sits 12% below its 50-day moving average and almost 22% under the 200-day line.
The numbers behind the gloom are stark. First-quarter 2026 revenue slipped 5% to €31.6 billion, while operating profit (EBIT) tumbled 17% to €1.9 billion. The core cars division’s adjusted return on sales nearly halved year-on-year to 4.1%, landing within the company’s full-year guidance range of 3% to 5% but offering scant comfort. China, Mercedes’ single most important market, saw deliveries plunge 25%, compounding pressure from weak EV demand and the looming threat of US tariffs. The vans unit fared better with a 10.1% margin, and the financial services arm lifted adjusted EBIT by 44% to €413 million. Free cash flow from the industrial business stood at €1.86 billion.
Should investors sell immediately? Or is it worth buying Mercedes-Benz?
On a technical basis, the stock looks washed out. The relative strength index reads 28.6, deep in oversold territory, yet the price remains more than 20% below the 200-day average of roughly €55. Analysts see fair value at around €61.20 on consensus, implying a substantial discount to the December 2025 high of €62.30 — but the market is waiting for evidence that the turnaround plan is gaining traction.
One tactical shift has already emerged. In response to the sluggish EV transition, Mercedes is reintroducing V8 combustion engines in the US and China, capitalising on relaxed US emissions rules and sustained demand from luxury buyers. The move is designed to shore up margins in the high-margin segments in the near term.
The next major catalyst arrives on 14 July 2026 with a pre-close call for the second quarter, followed by the full interim report and analyst conference on 28 July. Investors will be watching closely for signs that margins and free cash flow can hold steady despite model changeovers and trade headwinds. Until then, the stock appears to be pricing in a recovery that has yet to materialise – oversold or not.
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