Daimler Truck (DTG) Q4 2025 (Media) earnings summary

Executive summary

• U.S. order intake stabilized with improved customer confidence as freight rates recover and tariff uncertainty lessens.

• Achieved resilient 2025 results despite declining markets and tariff headwinds, with strong North America and double-digit Daimler Buses margins.

• Sold 422,510 trucks and buses worldwide in 2025, down 8% year-over-year; battery-electric unit sales rose 67%.

• Incoming orders increased 2% year-over-year, with Q4 order intake up 13% driven by Mercedes-Benz Trucks and North America.

• Defense segment expanded through new partnerships and product configurations, including collaborations with Rheinmetall and Quantum Systems.

Financial highlights

• Adjusted Group EBIT: €3,778 million (down 19% from €4,667 million in 2024).

• Industrial Business revenue: €45.9 billion (down 10% from €50.7 billion in 2024).

• Return on sales in the U.S. expected to decline in 2026 due to full-year impact of Section 232 truck tariffs, despite higher volumes.

• EUR 321 million provision for staff cuts under Cost Down Europe was taken in Q3 last year; no further provision expected this year.

• Tariff impact in 2025 was EUR 250 million; 2026 guidance assumes a 6%-8% return on sales, reflecting tariff volatility.

Outlook and guidance

• 2026 guidance: Operational improvement expected from higher volumes and efficiency gains, offsetting increased tariff effects.

• Adjusted return on sales (Industrial Business) forecasted at 6–8%; Free Cash Flow (IB) expected at €2.7–3.2 billion, including €1.5 billion from Fuso-Hino integration.

• Projected 2026 unit sales: 330,000–360,000 (2025: 315,000 from continuing operations).

• No expected decline in U.S. sales for 2026; guidance indicates an increase aligned with order momentum.

• Middle East conflict not included in outlook due to uncertainty; limited expected impact on sales and supply chain.