Daimler Truck (DTG) Q4 2024 earnings summary

Executive summary

• 2024 delivered solid results with adjusted group EBIT of EUR 4.7 billion and adjusted industrial return on sales of 8.9%.

• Earnings per share were EUR 3.64, impacted by non-cash one-time impairments and provisions.

• Strong performance in North America and Buses; mixed results in Mercedes-Benz Trucks, with Europe under pressure and Brazil strong.

• Strategic priorities included segment reorganization, cost reduction in Europe, and ongoing cultural transformation.

• Integration of India and China businesses with Mercedes-Benz Trucks will impact segment reporting from 2025.

Financial highlights

• Group revenues declined 3% to EUR 54.1 billion; adjusted EBIT down 23% to EUR 3.6 billion.

• Free cash flow of the industrial business grew 12% to EUR 3.2 billion; net industrial liquidity reached EUR 8.6 billion.

• Net profit declined 23% to EUR 3.07 billion; EPS down 21% to EUR 3.64.

• Proposed dividend unchanged at EUR 1.90 per share, with ongoing share buyback program.

• Adjusted EBIT impacted by lower unit sales, higher material costs, and impairments related to China and CellCentric.

Outlook and guidance

• 2025 guidance: industrial unit sales 460,000–480,000, revenues EUR 52–54 billion, adjusted return on sales 8–10%.

• Adjusted EBIT expected to increase 5–15% in 2025.

• Free cash flow expected to decrease 10–25% due to higher investments and strong 2024 comparison.

• Segment guidance: North America ROS 11–13%, Mercedes-Benz Trucks 5–7%, Trucks Asia 4–6%, Buses 8–10%.

• Outlook subject to macroeconomic, geopolitical, and inflationary risks.