Mercedes’ engine division in 2025 focused mainly on the production and design of power units for Formula 1. Due to the expiration of the main additional activity, financial revenues clearly declined, and employment also decreased.
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The following text concerns the finances of Mercedes AMG High Performance Powertrains Limited, which I will further refer to as Mercedes’ engine division. The data was obtained from a report submitted to the UK authorities in July. This company does not receive financial benefits from sponsors or for participation in F1 as part of bonuses from Liberty Media. The company is entirely financed by the Mercedes-Benz Group AG corporation. Additionally, it earns from F1 teams that rent power units from them. I discussed the financial results of the F1 team in 2025 extensively a few weeks ago, which were record-breaking in the entire history of F1.
What was Mercedes’ engine factory in Brixworth doing in 2025?
Mercedes AMG High Performance Powertrains Limited, based in Brixworth, is a company engaged in the development and production of engines. The sole owner of this company is the Mercedes-Benz Group AG corporation, and its head for several years has been Hywel Thomas. In 2025, the company concentrated on producing power units for four F1 teams, as well as designing completely different engines for the 2026 season. In previous years, this factory grew significantly due to the construction and servicing of 275 engines for the Mercedes-AMG One road supercar. Their production has now ended, and in 2025 the factory switched to ongoing inspections and repairs of these engines. Various research and development works for Mercedes and AMG concerning electric drives were also conducted. They also increased their involvement in engineering work performed for external partners.
Mercedes boasted in the 2025 report that cars with their hybrid V6 Turbo engine achieved 140 wins (56%) from 2014 to 2025, when the previous engine regulations were in effect, as well as secured 386 podium places (51% of the total) and won 10 of 12 constructors’ championship titles.
Discussion of Mercedes’ engine division financial results in 2025
In 2025, Mercedes’ engine division generated revenues of £229.9 million. For comparison, in 2024 it was £313 million, and in 2023 £359.8 million – the highest in the company’s history. Such a large drop in revenues is related to the end of engine production for the Mercedes-AMG One road car. Due to this car, the company grew significantly in recent years and is now gradually returning to values largely dependent on Formula 1. The report states that the value of goods sold was £7.3 million, compared to £66.6 million the previous year and £140.4 million two years earlier. These are the revenues related to this car, which have greatly decreased. Revenues from services also fell in 2025 from £246.4 million in 2024 to £222.6 million in 2025. This activity is mostly related to F1. Direct operating costs amounted to £215.2 million, significantly less than £281.8 million in 2024. After all taxes, the company made a net profit of £26.9 million, an improvement from £17.7 million in 2024. The company is fully financed by Mercedes-Benz, which contributes to the budget as needed, usually resulting in a profit at the end of the year.
Expenditures on research and development increased significantly from £114.7 million in 2024 to £161.6 million in 2025. This is the result of ongoing design work related to new engines for F1.
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In 2025, the average monthly employment was 886 people, down from 925 in 2024. The decrease must be related to the cessation of engine production for road cars. The actual number of employees is higher because the data refers to average employment, and many employees are hired for a fixed term. Financial reports are not required to include contract, temporary, or employees hired by another company within the same group. Total salary expenses amounted to £84.2 million, an increase of £0.5 million compared to 2024. The highest-paid director (Hywel Thomas) received £1,078,337 in 2024, up from £872,662 the previous year.
The near future of Mercedes’ engine factory
Mercedes’ engine division is currently mostly engaged in the development and production of power units according to new regulations for four teams. All their clients, i.e., McLaren, Williams, and Alpine, have contracts until 2030 inclusive, plus of course the actual team. This number of clients allows them to develop power units faster because they have more data, as well as maintain the scale of employment and production in the factory. On the other hand, they have to produce more units, which is always a challenge. The current engine regulations are to apply until the end of 2030. They may then be extended (previous ones were extended several times) or new engines will be introduced from 2031, which will force the Mercedes factory to start new design work.
Recall that since 2023, there is a separate budget cap for engine manufacturers in F1, which applies to work on power units for the 2026 season. It works very similarly to the budget cap imposed on teams. For engines, it does not cover work on current power units that will be used until the end of 2025. The effect of this cap will appear in the financial results of Mercedes’ engine division in 2026, with the corporation contributing less to its operation.
Articles and discussions of the financial results of various Formula 1 teams and issues related to their finances can be found under the tag Budget.
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