BMW vs Mercedes-Benz: Revenue, Profit and Business Model
BMW reported ~$150.8B of revenue in FY2025 and ~$8.2B of net income. Mercedes-Benz reported ~$149.4B of revenue in FY2025 and ~$5.8B of net income.
Latest financial snapshot
BMW
- Latest revenue
- ~$150.8B (FY2025)
- Net income
- ~$8.2B
- Net margin
- 5.5%
- Revenue growth
- +4.7% a year, FY2021–FY2025
Mercedes-Benz
- Latest revenue
- ~$149.4B (FY2025)
- Net income
- ~$5.8B
- Net margin
- 3.9%
- Revenue growth
- -0.3% a year, FY2021–FY2025
Financial summary
BMW
BMW's financial story has turned from peak to reset in three years. Revenue reached ~$176 billion (EUR155.5 billion) in 2023 with a 9.8% automotive EBIT margin, then fell to ~$161 billion (EUR142.4 billion) in 2024 and ~$151 billion (EUR133.5 billion) in 2025 as China pricing, tariffs and currency weighed. Group profit before tax still stayed above ~$11.3 billion (EUR10 billion) in 2025 (~$11.6 billion (EUR10.236 billion), 7.7% margin), helped by ~$2.82 billion (EUR2.5 billion) of cost cuts and a stable Financial Services business. 2026 is weaker: H1 revenue fell 8.0% to ~$70.4 billion (EUR62.3 billion), Group EBT dropped 29.4% to ~$4.52 billion (EUR4.0 billion), and BMW now guides to a 1-3% automotive EBIT margin and automotive free cash flow above ~$2.82 billion (EUR2.5 billion). Shareholder returns continue through a EUR4.40 dividend for 2025 and a ~$2.26 billion (EUR2 billion) buyback due to finish by November 2026.
Mercedes-Benz
Revenue peaked at ~$173 billion (€153.2 billion) in 2023, then fell to ~$165 billion (€145.6 billion) in 2024 and ~$149 billion (€132.2 billion) in 2025. Net profit dropped from about $16.2 billion (€14.3 billion) in 2023 to about $5.99 billion (€5.3 billion) in 2025, and the Cars adjusted return on sales fell to 5.0%. Cash generation held up better: industrial free cash flow was ~$6.1 billion (€5.4 billion) in 2025 and net industrial liquidity stood at ~$34.4 billion (€30.4 billion) at the end of June 2026. In Q2 2026, revenue was ~$36.3 billion (€32.1 billion) (down 3%), Group EBIT rose 22% to ~$1.69 billion (€1.5 billion), adjusted EBIT was ~$2.6 billion (€2.3 billion), and Financial Services adjusted EBIT rose 70% to ~$556 million (€492 million).
Revenue and profit by year
BMW
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$150.8B | ~$8.2B | 5.5% | -6.3% | Source |
| FY2024 | ~$160.9B | ~$8.2B | 5.1% | -8.4% | Source |
| FY2023 | ~$175.7B | ~$12.8B | 7.3% | +9.0% | Source |
| FY2022 | ~$161.1B | ~$20.3B | 12.6% | +28.2% | Source |
| FY2021 | ~$125.7B | ~$14B | 11.1% | — | Source |
Mercedes-Benz
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$149.4B | ~$5.8B | 3.9% | -9.2% | Source |
| FY2024 | ~$164.5B | ~$11.5B | 7.0% | -4.5% | Source |
| FY2023 | ~$172.2B | ~$16.1B | 9.4% | +1.6% | Source |
| FY2022 | ~$169.5B | ~$16.4B | 9.7% | +12.0% | Source |
| FY2021 | ~$151.3B | ~$26B | 17.2% | — | Source |
Where the revenue comes from
BMW
- Automotive
~$133B (EUR117.6B) segment revenue (2025)
Sales of BMW, MINI and Rolls-Royce cars, parts and services; the segment's EBIT margin was 5.3% in 2025.
- Financial Services
~$45B (EUR39.8B) segment revenue (2025)
Leasing, retail loans, dealer financing and insurance; new business volume was ~$74.4B (EUR65.8B) in 2025.
- Motorcycles
~$3.5B (EUR3.1B) segment revenue (2025)
BMW Motorrad bikes, parts and gear; segment EBIT margin was 5.7% in 2025.
Mercedes-Benz
- Mercedes-Benz Cars
Largest share of group revenue
Sales of Mercedes-Benz, AMG, Maybach and G-Class passenger cars plus related parts and services; the largest segment by revenue.
- Mercedes-Benz Vans
Second-largest vehicle segment
Sprinter, Vito/V-Class and electric vans for business and private buyers; 10.2% adjusted return on sales in 2025.
- Mercedes-Benz Financial Services
Separate segment; adj. RoE 9.7% in 2025
Interest and fee income from retail loans, leases, fleet services and insurance brokerage.
Business model and strategy
BMW
How it makes money
BMW makes money by designing, building and selling premium cars at prices that carry a brand premium, then earning a second layer of profit from financing them. In 2025 the Automotive segment (BMW, MINI, Rolls-Royce) generated ~$133 billion (EUR117.6 billion) of revenue, Financial Services ~$45 billion (EUR39.8 billion) and Motorcycles ~$3.5 billion (EUR3.1 billion) before intra-group eliminations.
Growth strategy
Under CEO Milan Nedeljković, BMW's growth plan is narrower and more regional. The group will cut variants (the 2 Series Active Tourer gets no successor), add top-end models such as the first BMW ALPINA car in 2027 and a US-focused SAV above the X7, and launch a compact Neue Klasse EV for Europe in 2028.
Competitive advantage
BMW's advantage rests on brand depth, engineering credibility and a flexible production network. Customers still pay for BMW driving dynamics, M performance models and Rolls-Royce craftsmanship, which supports pricing even when volumes are flat.
Mercedes-Benz
How it makes money
Mercedes-Benz makes money in three segments. Mercedes-Benz Cars, the largest by far, sells passenger vehicles grouped as Entry, Core (C-Class, E-Class, GLC, GLE) and Top-End (S-Class, Mercedes-Maybach, Mercedes-AMG, G-Class), with Top-End models carrying the highest margins.
Growth strategy
Management is relying on a product offensive rather than volume growth: Mercedes calls 2025-2027 its largest-ever launch programme, built around the new electric CLA on the MMA platform, the electric GLC, refreshed S-Class and other core models, all running the in-house MB.OS operating system. In Q2 2026 Cars battery-electric sales rose 51%, and the company raised its 2026 electrified-vehicle share target to 23-25%.
Competitive advantage
Mercedes-Benz's edge rests on a brand that has commanded premium prices for more than a century, a Top-End lineup (S-Class, Maybach, AMG, G-Class) that few rivals match in breadth, and a captive finance arm that supports pricing and residual values.
Questions about BMW vs Mercedes-Benz
Which company has higher revenue — Bayerische Motoren Werke AG or Mercedes-Benz Group AG?
Bayerische Motoren Werke AG reported ~$150.8B (FY2025), while Mercedes-Benz Group AG reported ~$149.4B (FY2025). By last reported revenue, Bayerische Motoren Werke AG is the larger business, with Mercedes-Benz Group AG reporting a smaller revenue base.
What is the market cap of Bayerische Motoren Werke AG vs Mercedes-Benz Group AG?
Bayerische Motoren Werke AG's market capitalisation stands at $39.8B, while Mercedes-Benz Group AG's is $53.0B. Mercedes-Benz Group AG carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Bayerische Motoren Werke AG.
Which is more financially efficient — Bayerische Motoren Werke AG or Mercedes-Benz Group AG?
Bayerische Motoren Werke AG generates $976k / employee in revenue per employee, while Mercedes-Benz Group AG generates $910k / employee. Bayerische Motoren Werke AG shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Bayerische Motoren Werke AG and Mercedes-Benz Group AG make money?
Bayerische Motoren Werke AG and Mercedes-Benz Group AG generate revenue in fundamentally different ways. Bayerische Motoren Werke AG: BMW makes money by designing, building and selling premium cars at prices that carry a brand premium, then earning a second layer of profit from financing them. Mercedes-Benz Group AG: Mercedes-Benz makes money in three segments.
Which company is valued higher relative to revenue — Bayerische Motoren Werke AG or Mercedes-Benz Group AG?
On a price-to-sales (P/S) basis, Bayerische Motoren Werke AG trades at 0.3x P/S and Mercedes-Benz Group AG at 0.4x P/S. Mercedes-Benz Group AG commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Bayerische Motoren Werke AG. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Bayerische Motoren Werke AG bigger than Mercedes-Benz Group AG?
By last reported revenue, Bayerische Motoren Werke AG (~$150.8B (FY2025)) is the larger company compared to Mercedes-Benz Group AG (~$149.4B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the BMW vs Mercedes-Benz overview