The Silver Arrows' Golden Balance Sheet
Despite a tricky “ground effect era” that saw them finish second in the constructors' championship, the Mercedes-AMG Petronas Formula 1 Team has showcased undeniable financial strength. Its latest annual accounts, filed at Companies House, reveal robust economic health, with revenue reaching £633.4 million in 2025. This represents an increase of £1.3 million from the 2024 season.
The revenue growth translated into higher profitability. The team reported a profit after tax of £125.9 million, up from £116.9 million the previous year. Operating profit, which team directors emphasise as a crucial metric, also increased to £166.7 million from £156.2 million, highlighting the team's ability to manage costs effectively.
Fueling the Future: Sponsorship & Expansion
More than £415 million of Mercedes' revenue came from sponsorship and licensing agreements, underlining the commercial value of associating with one of F1's most recognisable teams. The team welcomed several major partners in 2025, including adidas, Meta AI, and Nasdaq, further diversifying its commercial portfolio.
The expansion continued into early 2026, with Microsoft, Nu, and Zuma joining the partnership roster. However, Mercedes' share of broadcast coverage fell from 15.5% in 2024 to 13.2% in 2025. This was attributed to McLaren's compelling championship battle, which accounted for 24% of airtime.
Strategic Moves Beyond the Track
Beyond racing operations and commercial partnerships, Mercedes also strengthened its ownership structure. In November 2025, CrowdStrike founder and CEO George Kurtz acquired a minority stake in Toto Wolff's ownership company, Motorsports Invest, adding to the team's long-term financial backing.
Infrastructure investment also continued, with two new buildings at the Brackley site scheduled for completion in the second half of 2026. The expansion reflects the team's commitment to future development and innovation as it seeks to remain at the forefront of Formula 1 technology and performance.
A Tale of Two Teams: Mercedes vs. McLaren
The financial picture was different for reigning constructors' champions McLaren Racing Limited, which also filed its 2025 accounts. Although McLaren's revenue rose substantially to £588.5 million, up from £488.4 million, the company recorded a £17.4 million loss for the year. Its operating loss reached £42.8 million, primarily due to share-based payments.
The contrast highlights Mercedes' ability to translate its commercial strength into substantial profits, even during a challenging period on track, while McLaren's strong revenue growth did not result in a profitable year.
Gearing Up for 2026: Austin Upgrades on the Horizon
Looking ahead to the 2026 season, Mercedes is leading the constructors' championship with 578 points, holding a 134-point advantage over Ferrari. In the drivers' standings, Kimi Antonelli has a 102-point lead over George Russell, setting up an intriguing battle as the season progresses.
Team principal Toto Wolff confirmed that both Mercedes cars are likely to receive the latest upgrade package at the upcoming United States Grand Prix in Austin. The updates are intended to gather valuable data to support development of next year's car.
