Struggles in the North American commercial vehicle sector for Daimler Trucks
Daimler Truck Lowers North American Sales and Profitability Forecasts Amid Tariff Uncertainty
Daimler Truck, a prominent DAX company, has announced revised forecasts for its Trucks North America segment due to ongoing market uncertainty caused by US tariffs. The updated guidance assumes continued operation under the US-Mexico-Canada Agreement (USMCA) tariff framework but remains subject to revision if the tariff landscape deteriorates or economic conditions worsen.
According to Daimler Truck North America CEO John O’Leary, the current economic situation has significantly impacted the trucking sector, leading to reduced sales demand and a "frozen" buying behavior among consumers. This uncertainty has caused Daimler Truck to lower its guidance for sales and profitability in North America, while other regional operations remain stable.
The revised sales target for Trucks North America now stands at 135,000 to 155,000 units, a decrease from the previous 155,000 to 175,000 units. The company expects adjusted operating profit for 2025 to be in the range of €3.6 billion to €4.1 billion ($4.11 billion to $4.68 billion), down from prior forecasts. It has also lowered its full-year expectations for sales volumes, now targeting between 410,000 and 440,000 units, with revenue forecasted between €44 billion and €47 billion and an adjusted margin of 7% to 9%.
CFO Eva Scherer attributed the decrease in order intake as the reason for the revised sales target. She stated that after a strong first half in North America, there has been a significant decrease in order intake. The persistent weakness in the North American market is still being assessed as weaker by Daimler Truck.
CEO Karin Radström, head of Daimler Truck's industrial business, excluding financial services, is leading the company through these challenges. The latest announcement does not mention any changes to the market and sales assessments in other regions.
In a statement made in Leinfelden-Echterdingen, Daimler Truck announced that the adjustments in capacities and market forecast are in response to ongoing market uncertainty. The revised targets do not affect the overall revenue expectation for the industrial business of Daimler Truck, which remains at 44 to 47 billion euros by 2025.
Shares of Daimler Truck fell by three percent after hours following the latest announcement. The industrial business, excluding financial services, of Daimler Truck had earlier adjusted its revenue target to 48 to 51 billion euros in mid-May.
In summary:
| Aspect | Revised Forecast / Impact | |---------------------------|---------------------------------------------------------------| | Operating profit (2025) | €3.6B to €4.1B (down from previous range) | | Sales volume forecast | 410,000 to 440,000 trucks | | Revenue forecast | €44B to €47B | | Adjusted profit margin | 7% to 9% | | Cause of revision | Market uncertainty and tariff impact on North America segment |
In light of ongoing market uncertainty due to tariff implications, Daimler Truck has revised its forecasts for both sales and profitability in the business and finance sector of the trucking industry within North America. The revised sales target now ranges from 135,000 to 155,000 units, a decrease from the previous range, and the adjusted operating profit for 2025 is expected to be between €3.6 billion and €4.1 billion.
