Daimler Truck (DTG) Q4 2024 (Media) earnings summary

Executive summary

• Adjusted EBIT was €4.7bn with an 8.9% return on sales, reflecting solid performance despite a 3% revenue decrease to €54.1bn and a 23% drop in net profit to €3.1bn.

• Free cash flow of the Industrial Business rose 12% to €3.2bn, supported by improved working capital.

• Management remains confident in further improvement and aims to build the best truck and bus company globally.

• Significant impairments included €281m on cellcentric and €120m on BFDA joint ventures.

• Share buyback program continued, with €850m spent in 2024 and a dividend proposal of €1.90 per share.

Financial highlights

• Adjusted EBIT: €4.7bn (-15% year-over-year); Return on sales: 8.9%; Revenue: €54.1bn (-3%); Net profit: €3.1bn (-23%).

• Free cash flow (Industrial Business): €3.2bn (+12%); Net liquidity: €8.6bn (+3%).

• Investments in property, plant & equipment: €1.4bn (+38%); R&D expenditure: €2.1bn (+5%).

• Mercedes-Benz Trucks return on sales: 7.5%.

• Financial Services adjusted return on equity: 5.0% (down from 9.1%).

Outlook and guidance

• 2025 adjusted EBIT expected to increase by 5–15%; Industrial Business revenue forecasted at €52–54bn.

• Adjusted industrial return on sales targeted at 8–10%; free cash flow expected to decline 10–25%.

• North American heavy-duty truck market expected at 280,000–320,000 units; European heavy-duty truck market at 270,000–310,000 units for 2025.

• Unit sales expected between 460,000 and 480,000 vehicles.

• Segment guidance: Trucks North America 11–13%, Mercedes-Benz Trucks 5–7%, Trucks Asia 4–6%, Daimler Buses 8–10%, Financial Services 8–10% adjusted return on equity.