Daimler Truck (DTG) Q4 2024 (Media) earnings summary

Executive summary

• Adjusted EBIT declined 15% to €4.7bn, with an adjusted return on sales of 8.9% in the Industrial Business.

• Revenue decreased 3% to €54.1bn and net profit fell 23% to €3.1bn compared to 2023, reflecting lower unit sales and special items.

• Free cash flow of the Industrial Business rose 12% to €3.2bn, supported by improved working capital.

• Significant impairments included €281m on cellcentric and €120m on BFDA joint ventures.

• Share buyback program continued, with €850m spent in 2024 and a dividend proposal of €1.90 per share.

Financial highlights

• Adjusted EBIT reached €4.7bn for the year, with a return on sales of 8.9%.

• Revenue: €54.1bn (-3%); Net profit: €3.1bn (-23%); Free cash flow (Industrial Business): €3.2bn (+12%).

• Investments in property, plant & equipment: €1.4bn (+38%); R&D expenditure: €2.1bn (+5%).

• Mercedes-Benz Trucks saw a positive €100m impact from R&D cost allocation in 2024.

• Financial Services adjusted return on equity: 5.0% (down from 9.1%).

Outlook and guidance

• 2025 adjusted EBIT expected to increase by 5–15%; Industrial Business revenue forecasted at €52–54bn.

• Adjusted return on sales (Industrial Business) targeted at 8–10%; free cash flow expected to decline 10–25%.

• North American heavy-duty truck market expected at 280,000–320,000 units for 2025; European heavy-duty truck market forecasted at 270,000–310,000 units.

• Segment guidance: Trucks North America 11–13% adjusted return on sales; Mercedes-Benz Trucks 5–7%; Trucks Asia 4–6%; Daimler Buses 8–10%; Financial Services 8–10% adjusted return on equity.

• Unit sales expected between 460,000 and 480,000 vehicles.