Mercedes F1 Team has set new financial records in 2024, posting an exceptional after-tax profit of nearly £120 million during Lewis Hamilton’s final season with the team. This milestone comes as Hamilton prepares to join Ferrari in 2025, ending his dominant era at Mercedes where he secured 84 race victories and six world drivers’ championships.
Financial Gains Driven by Sponsorship and Licensing
Official filings with Companies House in the UK revealed Mercedes’ after-tax profit for 2024 reached £120,344,000, a remarkable increase of £36,498,000 from the previous year’s £83.846 million. Team principal and CEO Toto Wolff attributed this success to
“higher commercial revenues from sponsorship and licensing, accounting for over 60% of income.”
Revenue Growth and Increased Operating Profits
The team’s turnover climbed to £636.025 million in 2024, rising by £89.575 million from £546.450 million in 2023. While expenses grew from £413.671 million to £448.793 million, partly due to an extra grand prix and the reinstatement of the Chinese Grand Prix after a pandemic-induced five-year break, Mercedes still boosted its gross profit to £187.232 million, a rise of nearly £65 million.
Mercedes reported an operating profit of £160.64 million, up substantially from £113.786 million in 2023. After deducting interest costs, the profit before tax reached £164.046 million, improving on the previous year’s £115.830 million.
Strong Fiscal Discipline Yields Significant Net Profits
For the financial year ending December 31, 2024, the team paid £42.702 million in taxes, resulting in the impressive after-tax profit of £120.344 million. This significant growth demonstrates Mercedes’ financial strength in a competitive F1 environment amid the shifts in driver line-ups and calendar events.
Industry Context and Future Outlook
Among UK-based Formula 1 teams, Mercedes has set a high benchmark with this outstanding financial outcome during a transitional period for the squad. Other teams such as Red Bull and McLaren are expected to release their financial reports by September 30, 2025.
As Lewis Hamilton embarks on the next chapter with Ferrari, Mercedes’ record profits underscore the synergy between on-track success and commercial growth, positioning the team strongly for future challenges.
