Daimler Truck (DTG) Q2 2024 earnings summary

Executive summary

• Q2 2024 was impacted by a €120 million non-cash impairment on the Chinese joint venture BFDA, reflecting persistent market weakness in China.

• Unit sales declined 15% year-over-year, with group revenue down 4% to €13.3 billion and adjusted EBIT down 18% to €1,168 million.

• Free cash flow for the industrial business was negative at €-285 million in Q2, but year-to-date free cash flow improved to €928 million, up 69% year-over-year.

• Zero-emission vehicle sales and orders more than doubled year-over-year, with strong product launches and strategic partnerships advancing electrification and digitalization.

• S&P upgraded the long-term credit rating from BBB+ to A-, and several joint ventures and new product launches were announced.

Financial highlights

• Group revenue fell 4% to €13.3 billion; adjusted EBIT declined 18% to €1,168 million; reported EBIT was €1,076 million, down 22% year-over-year.

• Net profit for Q2 2024 was €789 million, down 21% year-over-year; earnings per share were €0.93.

• Free cash flow (industrial business) was €-285 million in Q2; year-to-date free cash flow was €928 million.

• Net industrial liquidity at the end of Q2 was €7.2 billion, down from €8.3 billion at year-end 2023.

• Adjusted return on sales for the industrial business was 9.3%, down from 10.3% year-over-year.

Outlook and guidance

• Full-year 2024 revenue guidance lowered to €53–55 billion, with unit sales expected at 460,000–480,000 and adjusted EBIT slightly below prior year.

• Adjusted return on sales for industrial business forecast at 8–9.5%, including the China impairment.

• Segment guidance: Trucks North America expected to achieve top-end return on sales, while Mercedes-Benz and Trucks Asia face continued margin pressure; Daimler Buses guidance increased.

• Free cash flow for the industrial business expected at prior year level.

• Outlook remains subject to macroeconomic and geopolitical developments.