LEINFELDEN-ECHTERDINGEN (dpa-AFX) - Commercial vehicle manufacturer Daimler Truck felt the impact of headwinds in North America during the first quarter, as revenue and operating profit fell significantly. Bottom-line results were further weighed down by one-off costs related to the spin-off of its Asian division into a joint venture with Toyota subsidiary Hino. However, management led by CEO Karin Radström sees light at the end of the tunnel with a recovery in order intake and has confirmed its full-year guidance. Profitability in the crucial U.S. market is expected to rebound significantly as early as the second quarter. The stock struggled to find direction in early trading.
The shares recently gained just over half a percent, bringing their 2026 year-to-date performance to a gain of approximately 17 percent. Analyst Michael Aspinall of U.S. investment bank Jefferies noted that first-quarter results were in line with his own estimates but fell short of market consensus. Crucially, however, the company expects its operating margin in North America to return to the 7 to 8 percent range in the second quarter, supported by the early stages of an improving order book.
Orders at Daimler Truck surged by 50 percent. Following last year's slump, bookings rose to 114,043 vehicles in the first three months. Uncertainty regarding economic developments due to tariff hikes had caused U.S. freight forwarders to temporarily halt truck orders last year.
This was reflected in the operating figures. Revenue in the industrial business - excluding financial services - fell 14 percent year-on-year to 9.1 billion euros. Group EBIT adjusted for special items plummeted by more than half to 498 million euros, the DAX-listed company announced on Wednesday in Leinfelden-Echterdingen. The closely watched adjusted operating margin in the industrial business dropped by 4.6 percentage points to 5.0 percent. These results were weaker than analysts had already feared.
On the bottom line, earnings per share fell by 80 percent to 0.18 euros. In addition to the weak performance in day-to-day operations, Daimler Truck carved out its Asian division (excluding China and India) in early April, contributing it to a joint venture with Toyota's Hino. Daimler Truck recorded a loss of 239 million euros from equity-method investments for the quarter.
'We are well-positioned to achieve further improvements over the remainder of the year despite a challenging first quarter,' said Daimler Truck CEO Radström in a statement. Order intake in the U.S. has recovered significantly. 'This momentum is expected to have a positive impact on our business development in the coming quarters,' the executive added.
Radström expects the North American division - typically the group's primary profit driver - to reach the upper end of its annual guidance range of 6 to 8 percent in the second quarter, compared to just 5.4 percent in the first quarter. Margins are also expected to improve in the current three-month period for the Mercedes-Benz truck brand, which is strong in Europe, as well as for the bus division.
The weakening U.S. market and lower bus sales had recently led to another decline in unit sales for Daimler Truck. In the first quarter of this year, the manufacturer sold 68,849 trucks and buses worldwide, representing a nine percent decrease.
To increase competitiveness, Daimler Truck has already launched the 'Cost Down Europe' savings program. The initiative aims to reduce operating costs on the home continent by more than one billion euros by 2030. Approximately 5,000 jobs are expected to be cut in Germany as a result, particularly affecting the Mercedes-Benz truck brand. Cost-cutting measures involving job reductions are also planned for North America.
