STUTTGART, Germany, Feb 12 (Reuters) - Mercedes-Benz on Thursday said the profit margin at its autos division could fall further this year, indicating tough months ​ahead as the luxury carmaker grapples ‌with high costs, a tough Chinese market and global tariffs.

The car division's ⁠adjusted return on sales is expected to be 3% ⁠to 5% in 2026, after 5% ‌in 2025.

Shares in ‌the company were indicated 3.7% lower in pre-market trading at 0708 GMT.

At ​the group level, the ‌company's operating profit more than halved to 5.8 billion euros ($6.9 billion) in 2025, a year marred ​by 1 billion euros ​in tariff ‌costs plus difficulties in the cutthroat China market and negative currency effects.

This was below the 6.6 billion ⁠euro forecast from a Visible Alpha poll.

MERCEDES-BENZ WARNS ⁠OF RELENTLESS COST DISCIPLINE

Mercedes-Benz plans further cost cuts and product launches, hoping to reach an 8% to 10% profit margin at its auto division through "relentless cost discipline."

Mercedes ⁠has ‌been seeking to reduce its fixed costs ‌through job cuts initiated in 2025 while also targeting ⁠slimmer production, including with a stronger focus on its plant in Hungary.

"Amid a dynamic market environment, our financial results remained within our guidance, thanks to our sharp focus on efficiency, speed, and flexibility," CEO Ola Kaellenius said.

In 2026, the company expects ​group revenue at the prior-year level, after reporting 132.2 billion euros in 2025, and EBIT significantly above the ​2025 result.

($1 = 0.8431 euros)