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

Executive summary

• U.S. order intake has stabilized with positive momentum in Q4 and early Q1, aided by recovering freight rates and increased certainty around tariffs.

• Achieved resilient financial results in 2025 despite declining key markets and tariff headwinds, with strong profitability in North America and double-digit margin at Daimler Buses.

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

• Cost Down Europe program achieved 2025 targets, with a new EUR 250 million savings target set for 2026.

• 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. is expected to decline in 2026 due to the 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.

• Guidance for operating margin remains at 6%-8%, reflecting tariff uncertainties.

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.

• No expected decline in U.S. sales for 2026; guidance anticipates an increase in line with order trends.

• Middle East conflict not factored into guidance due to limited exposure and uncertainty; main risks are macroeconomic, such as oil and gas prices and interest rates.

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