TRATON (8TRA) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw a 5% year-over-year increase in vehicle deliveries to 85,274 units, with sales revenue rising 5% to €11.9bn, mainly due to International's recovery and robust South American demand.

• Adjusted return on sales improved by 1.2pp year-over-year to 9.6%, and net cash flow increased by €631m to €1,279m.

• Brands advanced electrification and service offerings, with Scania and MAN launching new electric trucks and International rebranding.

• Order intake remained stable year-over-year at 64,000–64,353 vehicles, with a 9% sequential increase.

• Sales revenue for the nine-month period grew 3% to €35.3bn, despite a 2% decline in unit sales to 245,400 vehicles.

Financial highlights

• Q3 adjusted operating result rose 19%, with adjusted return on sales at 9.6%.

• Earnings per share increased to €1.45 in Q3.

• Net cash flow for the nine-month period was €1.3 billion, aided by inventory delivery at International.

• TRATON Financial Services revenue rose 60% in Q3, with return on equity at 10.9%.

• Gross profit improved by €806 million (12%) to €7.6 billion, with gross margin up 1.7pp to 21.5%.

Outlook and guidance

• 2024 outlook confirmed: unit sales and sales revenue expected to be -5% to +10% versus prior year.

• Adjusted operating return on sales for FY 2024 guided at 8.0–9.0% for the Group and 9.0–10.0% for TRATON Operations.

• Net cash flow expected toward the lower end of €2.3–2.8 billion due to higher working capital and capex.

• Return on equity for Financial Services expected between 7.0–10.0%.

• Market outlook for 2025: Europe expected to decline 5%-10%, North America down 6%, South America to grow 5%-10%.