Daimler Truck (DTG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 7% year-over-year to €11.6 billion, with unit sales down 8% to 99,812 units; adjusted group EBIT was €1,164 million, and EPS was €0.99.

• Free cash flow for the industrial business dropped sharply to €33 million; net industrial liquidity stood at €7.9 billion.

• Strategic measures included integrating China and India into Mercedes-Benz Trucks, launching major cost reduction initiatives, and securing Amazon’s record order for 202 eActros 600 electric trucks.

• Market environment weakened, especially in North America and EU30, impacting heavy-duty truck demand.

• Significant product and infrastructure developments included the Truck Charge initiative for 3,000+ charging points by 2030 and successful GenH2 fuel cell truck tests.

Financial highlights

• Adjusted EBIT at group level declined 4% year-over-year to €1,164 million; net profit for Q1 2025 was €799 million.

• Trucks North America delivered €778 million adjusted EBIT (14.4% margin); Mercedes-Benz Trucks posted €238–417 million (5.4–8.0% margin).

• Trucks Asia reported €55–64 million adjusted EBIT (4.7–5.4% margin); Daimler Buses EBIT was €126 million (9.4% margin).

• Financial Services EBIT was €51–55 million; adjusted ROE at 7.3–8.2%.

• Free cash flow before interest and taxes was €268 million; adjusted free cash flow €143 million.

Outlook and guidance

• 2025 unit sales guidance for Industrial Business: 430,000–460,000 units, revised down from 460,000–480,000.

• Revenue guidance for 2025: €48–51 billion; adjusted ROS expected at 8–10%.

• Free cash flow for industrial business expected to decrease 10–25%, with back-end loading in H2.

• Group adjusted EBIT expected between -5% and +5% year-over-year.

• Cost Down Europe program targets over €1 billion recurring cost reduction by 2030; restructuring provision to be recognized in Q2.