Daimler Truck (DTG) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined 5% year-over-year to €13.1bn, with adjusted EBIT down 12% to €1.19bn and reported EBIT at €873m; net profit was €627m and EPS €0.77.

• Free cash flow of the industrial business was negative at €-41m, and net industrial liquidity decreased to €6.5bn, impacted by dividend payments and share buybacks.

• Order backlog and incoming orders normalized across all regions, with unit sales declining 11% year-over-year; ZEV (zero-emission vehicle) orders and unit sales grew year-to-date.

• Extraordinary items included significant China-related impairments, with €156m impairment of trade receivables and €24m impairment of other financial assets in Q3, and €120m impairment on BFDA joint venture in Q2.

• The full-year 2024 outlook remains unchanged, with unit sales, revenue, and EBIT expected below prior year levels.

Financial highlights

• Group revenue: €13.1bn (down 5% year-over-year); adjusted EBIT: €1.19bn (down 12%); reported EBIT: €873m (down 28%); net profit: €627m; EPS: €0.77.

• Free cash flow (industrial business): €-41m; net industrial liquidity: €6.5bn.

• Adjusted group and industrial business return on sales: 9.3%.

• Earnings per share: €0.77 (Q3 2023: €1.13); return on capital employed (9M): 35.6%.

• Research and development expenditure: €448m (-9% YoY); capitalized development costs: €79m.

Outlook and guidance

• 2024 full-year guidance unchanged: unit sales 460–480k, revenue €53–55bn, adjusted EBIT slightly below prior year, reported EBIT significantly below.

• Industrial business adjusted return on sales expected at 8–9.5%; free cash flow to remain at prior year level.

• Segment guidance: Trucks North America adjusted return on sales 11–13%, Mercedes-Benz 6–8%, Trucks Asia 1.5–3.5%, Daimler Buses 6.5–8.5%.

• Outlook subject to macroeconomic and geopolitical risks, including demand, supply chain, FX, and regulatory changes.

• Q4 push for free cash flow via inventory reduction and planned production shutdown over Christmas.