Mercedes-AMG Petronas F1 Team has posted a record-breaking profit of $223 million for the 2025 financial year, surpassing its previous record of $208 million in 2024.
The team also reported total revenue of $849 million, slightly up from $844.7 million in the previous year, maintaining strong financial stability despite changes in Formula 1 prize distributions and rising costs.
Commercial Revenue Drives Growth
Out of the total revenue, $556 million came from commercial operations, supported by a portfolio of 24 global sponsors. Key partners include Adidas, Meta, and Nasdaq.
While sponsorship income strengthened, Formula 1’s performance-based prize payments slightly decreased due to the team finishing lower in the constructors’ standings compared to previous seasons.
Rising Costs Offset But Not Enough to Stop Record Profit
Mercedes benefited from strong commercial growth but also faced higher expenses. The team paid increased driver and staff salaries, which reportedly rose by around 25%, along with performance-related bonuses after finishing second in the 2025 constructors’ championship.
Despite these rising costs, the team still managed to secure record profitability.
Heading Toward the Billion-Dollar Era
Analysts suggest Mercedes could become the first Formula 1 team to generate $1 billion in annual revenue within the next two years, driven by expanding sponsorship deals and global brand power.
Team leadership remains under Toto Wolff, with ownership shared between Mercedes-Benz and Ineos.
Ferrari Still Leads Valuation Rankings
According to Sportico, Mercedes remains the second most valuable Formula 1 team at $5.88 billion, behind Ferrari, which leads the rankings with a valuation of $6.4 billion.
The results underline Formula 1’s growing status as a global commercial powerhouse, where sporting success and business performance are increasingly intertwined.