TRATON (8TRA) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw a 10% decline in sales revenue to €10.6 billion and a 10% drop in unit sales, mainly due to weak markets in Europe and North America, with adjusted return on sales at 6.1% (down 3.3pp year-over-year).

• Net cash flow from operations was negative at -€111 million, reflecting lower operating results and increased investments.

• Incoming orders rose 12% to 74,307 units, driven by strong momentum in Europe, offsetting declines in the Americas.

• Strategic partnerships and technology investments included a collaboration with Applied Intuition, autonomous eBus deployment in Berlin, and Scania's major defense order.

• Book-to-bill ratio improved to 1.0, indicating order intake matched deliveries.

Financial highlights

• Group unit sales: 73,090–73,100 vehicles in Q1, down 10% year-on-year.

• Group revenue: €10.6 billion, down 10% year-on-year.

• Adjusted operating result fell 42% year-over-year to €646 million; adjusted return on sales at 6.1%.

• Earnings per share for Q1: €0.93–€1.00.

• TRATON Financial Services revenue up 17%, but return on equity decreased to 9.1% due to higher costs.

Outlook and guidance

• Full-year 2025 outlook maintained: unit sales and revenue expected between -5% and +5%; group-adjusted operating return on sales between 7.5% and 8.5%.

• Net cash flow guidance for 2025 is €2.2–2.7 billion, with capex expected to increase and R&D costs to decrease slightly.

• European truck market expected to decline between -15% and -5% in 2025, with optimism for the second half.

• North American market outlook revised to the lower end of -10% to 0%, with Class 8 volumes expected around 280,000.

• Outlook is sensitive to geopolitical developments, especially US tariff policy.