(updates: share price, analysts, details)
LEINFELDEN-ECHTERDINGEN (dpa-AFX) - Commercial vehicle manufacturer Daimler Truck was heavily burdened last year by US tariffs imposed by President Donald Trump. Sales, revenue, and profits fell significantly as operations in North America came under pressure. Management, led by CEO Karin Radström, also struck a cautious tone for the new year, even as initial signs of improvement appeared in order intake. Daimler Truck shares continued their upward trend of recent days.
The stock gained 2.3 percent to 42.96 euros by midday. It has gained around 15 percent this year. After the share price hit its lowest level since early January on Monday at under 39 euros, it was now approaching its February high of 44.78 euros at around 44 euros.
The fourth quarter was solid, according to a commentary by Citigroup expert Klas Bergelind. He pointed in particular to orders, which exceeded his expectations and the analyst consensus, including in North America. Added to this were strong cash flow and a dividend that surpassed expectations.
Earnings before interest and taxes adjusted for special items fell by almost a fifth to 3.78 billion euros, the DAX-listed group announced on Thursday in Leinfelden-Echterdingen. The adjusted operating margin in the industrial business - excluding financial services - stood at 7.8 percent, 1.1 percentage points lower than a year earlier.
For the new year, CEO Radström is targeting 6 to 8 percent. In its forecast figures, the company has already excluded the Asian division, which is set to launch in April as part of a new joint venture with Toyota subsidiary Hino and will then no longer be consolidated within the group. Analysts had expected a slightly lower margin for the past year; for the 2026 margin outlook, they had previously been near the upper end of the targeted range.
Management expressed confidence as orders, which had been sluggish for a long time, are picking up again. Order intake rose by 2 percent to 425,458 vehicles last year, with orders in the final quarter even jumping by 13 percent year-on-year.
Revenue in the industrial business declined by 10 percent to 45.9 billion euros in 2025. In the new year, it is expected to be between 42 and 46 billion euros - also excluding the former Asian business. Bottom-line profit slumped by 34 percent to 3.1 billion euros. However, the dividend is surprisingly expected to remain stable at 1.90 euros.
The group achieved a "resilient consolidated result in 2025 in a demanding business environment with declining key markets," the company stated. "Our 2025 results show improved operational performance in a challenging business environment," Radström said according to the release.
Market weakness in North America weighs on sales
Unit sales declined in 2025. In total, the group sold 422,510 trucks and buses last year. This represents a decrease of eight percent compared to the previous year.
In North America, sales collapsed by 26 percent. The group sold only around 142,000 vehicles there in 2025. The market is weakening as freight forwarders hold back on ordering new vehicles. Due in part to US tariffs, it is difficult to estimate the transport volume expected in the coming years.
Savings program "Cost Down Europe"
To become more competitive, Daimler Truck launched the "Cost Down Europe" savings program last year. By 2030, operating costs on the home continent are to be reduced by more than one billion euros. Consequently, approximately 5,000 jobs are to be cut in Germany. The Mercedes-Benz truck brand is particularly affected. Savings are also planned for North America.
"We are implementing our efficiency measures faster than planned," Radström said according to the statement. In 2025, the company already achieved net savings of over 100 million euros, it continued. For 2026, Daimler Truck is aiming for total net savings of at least 250 million euros./men/rwi/stw/stk
