(Alliance News) - Mercedes-Benz Group AG on Wednesday reported lower profit for the first quarter but said it is on track to deliver full-year guidance.

The Stuttgart, Germany-based carmaker said net profit fell 17% to EUR1.43 billion in the first quarter from EUR1.73 billion a year prior. Diluted earnings per share were down 14% to EUR1.49 from EUR1.74.

Revenue edged down 4.9% to EUR31.60 billion from EUR33.22 billion, while earnings before interest and tax fell 17% to EUR1.90 billion from EUR2.29 billion.

Mercedes-Benz said both revenue and Ebit were in line with its expectations.

The company noted a "challenging market environment" in the first quarter due to "intense competition and geopolitical and trade-related headwinds".

"First-quarter results keep us on track to deliver on our full-year guidance. Strong demand for our new products and healthy order books position us well for improved momentum in the second half of the year," said Board Member Harald Wilhelm.

"Going forward, we will remain firmly focused on disciplined execution, ensuring a well-coordinated rollout of our new models while maintaining tight cost control to sustain profitability."

The car firm said its "largest-ever launch plan", covering 40 new models between 2025 and 2027, is "gaining momentum" in its ramp-up year.

Earlier this month, Mercedes-Benz said overall vehicle sales fell 5.6% to 499,700 units in the first quarter of the year, from 529,200 a year prior, in line with expectations.

Deliveries of Mercedes-Benz cars were down 6% to 419,400 in the quarter. Excluding China, global sales grew by 5% compared with the previous year.

The firm said growth in the US and Europe partially offset lower sales in China, caused by model-cycle effects, macroeconomic uncertainty and "challenging" market conditions.

Looking ahead, Mercedes-Benz confirmed its guidance. It expects revenue and Ebit "significantly above" the previous year, primarily due to restructuring charges last year. The firm forecasts free cash flow for the industrial business to be "slightly below" the 2025 level.

"The company continues to closely monitor the geopolitical environment, including the conflict in the Middle East and its potential impact on consumer confidence," Mercedes-Benz said.

By Michael Hennessey, Alliance News reporter

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